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BUSINESS IN BRIEF 12/6
The
figure increased 30.1 percent in volume and decreased 2.9 percent in value
compared to the same period last year.
In May
alone,
In the first
four months,
In 2014,
The
country maintained the third and fourth positions in the world in terms of
natural rubber output and export value, respectively.-
NA
deputies make recommendations on socio-economic development
National
Assembly (NA) deputies made a number of proposals regarding measures for
socio-economic development at the 13th NA’s ninth session on June 8 under the
chair of Vice Chairwoman Nguyen Thi Kim Ngan.
Many agreed
with the Government’s supplementary report on socio-economic development in
2014 and the implementation of socio-economic development tasks in the first
months of 2015.
GDP
growth saw obvious recovery in the first quarter, reaching 6.03 percent, the
highest rate compared with the same period of the previous years, while
inflation has been kept at a low level. Bilateral and multilateral diplomacy
has been promoted, and the successful organisation of the 132nd
Inter-Parliamentary Union Assembly has contributed importantly to boosting
parliamentary diplomacy and increasing
Deputy
Huynh Nghia from central Da Nang city attributed the positive development to
joint efforts of the Government, ministries, sectors, the business community
and people and the supervision of the NA and all-level People’s Councils.
He
suggested fostering administrative reform, building an investment environment
with healthy competition, and designing mechanisms suitable for each business
type, adding that it is important that the State should help enterprises
access information about trade agreements and markets.
Meanwhile,
Deputy Le Thi Yen from northern Phu Tho province urged further boosting
comprehensive reform of market economy institutions, and bettering policies
to develop support industries.
She also
emphasised the need to continue with the restructuring of credit
organisations with bad performance, and speed up bad debt settlement in order
to bring the rate of bad debts to below 3 percent by the end of this year.
Regarding
difficulties in agricultural production, Deputy Nguyen Cao Phuc of central
Quang Ngai province proposed accelerating agricultural restructuring with the
focus on production planning.
Deputy
Tran Duong Tuan from the Mekong Delta
Southern
Ba Ria-Vung Tau province’s Le Thi Cong stressed the importance of thorough
study and better implementation of policies involving agriculture and rural
development.
Several
deputies suggested the Government carry out policies and measures to boost
inter-regional connectivity so as to bring into full play each region’s
advantages, and ensure the efficient utilisation of invested infrastructure
facilities like highways and seaports.
Quang
Ngai promotes investment potential
A
conference was held on June 7 in central Quang Ngai province to introduce the
region’s brimming potential to investors.
The
event was co-organised by the province and the Ministry of Natural Resources
and Environment.
Addressing
the event, Vice Chairman of the provincial People’s Committee, Pham Nhu So,
highlighted the local comprehensive road system as an advantage for socio-economic
development.
The Dung
Quat Economic Zone, covering an area of 45,000 hectares, is one of the five
key national marine economic zones, So said.
Quang
Ngai is home to nearly 20 industrial zones, clusters and trade villages with
developed infrastructure facilities, according to So.
It also
boasts the Dung Quat seaport, which is capable of handling 100,000 DWT ships;
and the Vietnam-Singapore (VSIP) Quang Ngai Industrial-Urban-Service Complex
with numerous incentives for investors, he added.
During the
event, an agreement was signed between the Vietnam Chamber of Commerce and
Industry (VCCI) and the Quang Ngai People’s Committee to strengthen support
for local businesses.
Under
the agreement, the two sides will facilitate access to financial sources for
small- and medium-size enterprises, and improve the local investment climate
to raise business competitiveness.
Trade
promotion campaigns, staff training and domestic and international
connections are also given priority among their joint efforts.
The same
day, a number of investment licences were granted to key local projects,
including the first phase of the VSIP Quang Ngai urban-service zone, with
total investment of 1,200 billion VND (56 million USD); the Muong Thanh five
star hotel and trade centre, 450 billion VND (21 million USD); and the Muong
Thanh Ly Son hotel project, 250 billion VND (11.7 million USD), among others.
Quang
Ngai, by the second quarter this year, had housed 300 domestic and foreign
projects with total registered capital of 144 trillion VND (6.7 billion USD).
Of these, 36 are foreign investment projects, worth more than 4 billion USD.
The
province’s GDP recorded an increase of 2.9 percent from 2013, with the
average per capita income reaching 2,215 USD.
The
locality also contributed more than 26 trillion VND (1.2 billion USD) to the
state budget in 2014.
Binh
Dinh works to develop tourism
Linking
sea and island tourism is a key priority in the central coastal
In a bid
to promote tourism in the locality, the province will focus on building its
tourism trademark while introducing local potential far and wide. It will
also open its doors for investors to develop technical infrastructure and
work to tackle barriers in land clearance.
Together
with support from the central Government, trillions of VND have been spent on
land clearance, resettlement and infrastructure such as the
Investors
with insufficient capital and experience will have their investment
certificates revoked to make room for other potential investors. The province
also recommended relevant ministries and agencies to ask for Government approval
for additional golf course projects in the Nhon Hoi Economic Zone, which is
slated to become a major tourism centre.
According
to the Prime Minister’s Decision 142/2005 on the general planning of Nhon Hoi
Economic Zone by 2020, space for coastal tourism development has been
adjusted to 2,570 hectares from 1,585 hectares to include the Vinpearl Hai
Giang and Nhon Hoi- Cat Tien coastal tourism sites and Thi Nai lagoon
eco-tourism site.
In
recent years, Binh Dinh has developed infrastructure for various kinds of
tourism, from cruises, resorts to sports and exploration tours. To date, the
province has drawn 11 coastal tourism-service projects with total registered
capital of 17.9 trillion VND (833 million USD).
Over 1.7
million travellers visited the province in the first five months of the year.
Of the figure, 85,600 were foreigners, surging 22 percent from the same
period in 2014.
Binh
Dinh is also working to submit a request for UNESCO-recognition of its
traditional martial arts as part of the intangible cultural heritage of
humanity.
The
local Bai choi singing, unique to the coastal central region and often seen
at local spring festivals, resembling a game using playing cards and village
huts, has also received attention. Restoration efforts have additionally
focused on traditional festivals and trade villages as well as historical and
cultural relic sites.
Binh
Dinh has carried out support policies for human resources training,
intensified domestic and international cooperation and accelerated communications
to raise local awareness of tourism.
Fertiliser
plants set for revamp
PetroVietnam
Fertiliser and Chemicals Corporation (PVFCCo) on June 7 signed the EPC
Contract with an international contractor consortium to revamp the Phu My NH3
and NPK complex.
The
project, covering an area of over 15 hectares on the land housing Phu My
Fertiliser Plant at Phu My 1 Industrial Zone in southern Ba Ria-Vung Tau
province, consists of two parts: revamping the NH3 Unit and build Phu My NPK
Plant.
The
complex project has a total investment capital of nearly 5 trillion VND, some
37 million USD, 70 percent of which will be financed by bank loans and
another 30 percent by the owner's equity.
After
completion, the upgrading of the NH3 Unit will increase the current ammonia output
at Phu My Fertilizer Plant by 90,000 tonnes per year, from the current
450,000 tonnes per year to 540,000 tonnes. Plans call for adopting
The EPC
(Engineering, Procurement, Construction and Commissioning) contractors
include
Meanwhile,
the projected Phu My NPK Plant, with a manufacturing capacity of 250,000
tonnes per year, will put in place
The
contractor consortium for the complex is
According
to the Ministry of Industry and Trade, demand for NPK fertiliser increased
from 2.1 million tonnes in 2005 to some 4 million tonnes in 2014, with an
annual average growth of 7 percent. Yet, domestic production can currently
only meet 5 to 10 percent of high quality NPK.
"Total
capital investment of the complex project is not large, in comparison with
other oil and gas projects, but it has great importance to the national
economy that helps ensure the country's agricultural sector,"
PetroVietnam's chairman, Nguyen Xuan Son, said during the signing ceremony.
Son
noted that
The
complex will be brought into operation during the second quarter of 2017.
Work
begins on a 25-million USD measurement instrument company
Japanese
Aichi Tokei Denki Co., Ltd, has begun the construction of a 25 million USD
plant making measuring instruments at
The
plant, the second project invested by the company in Trang Due IP, will
specialise in manufacturing and assembling electronic gas and water meters.
The
plant will become operational in June, 2016 and is expected to provide jobs
for more than 200 local labourers.
Aichi
Tokei Denki is providing electromagnetic products, sensors and central
control systems used for management and observation in large-scale complexes
and building. The company also develops measuring equipment to monitor water
supplies, sewerage systems as well as agricultural and industrial water
treatment facilities.
The
investment in
PetroVietnam
overcomes price decline to post positive results
Despite
sharp declines in crude oil prices, the Viet Nam Oil and Gas Group
(PetroVietnam) achieved satisfactory production and business results during
the first five months of this year.
This was
announced by PetroVietnam Deputy General Director Do Chi Thanh during a
meeting at the Ministry of Industry and Trade last week.
Thanh
also noted that some 7.6 million tonnes of crude oil was exploited during the
five months, representing 108 per cent of the firm's target for the period.
The
volume of gas exploited was 4.5 billion cubic metres, or 104 per cent of the
targeted figure, and the yield of oil products rolled out was 12.1 million
tonnes, or 107 per cent of the planned volume.
The
company recorded a total turnover of VND122 trillion (US$5.81 billion), or 83
per cent of the five-month quota, and earned an after-tax profit of VND17.1
trillion ($814.28 million), equivalent to 87 per cent of the plan.
Thanh
said that in the face of declining oil prices, the company had tried to cut
costs to achieve these results.
In May,
crude oil prices averaged $67 per barrel, rising by $5 from the April level.
However, the average price during the five months was $60 per barrel, down
46.7 per cent over the same period last year.
Techcom
Securities to issue millions of bonds
Techcom
Securities Company Limited announced it has arranged the issuance of VND2
trillion (US$91.74 million) corporate bonds for Vingroup in June.
The Ha
Noi-based securities company said its investors included commercial banks and
securities companies, adding that the bonds were non-convertible and
unsecured and were backed by a guarantee of Royal City Real Estate
Development and Investment Joint Stock Company – a subsidiary of Vingroup.
Techcom
Securities noted that the bond's annual coupon payment will be made on a
fixed rate for the first coupon payment and on a floating rate for the
remaining coupon payment.
The two
year bonds, each with a par value of VND100,000 ($4.5), were issued on June
2, 2015, and will be listed on the HCM City Stock Exchange within two to
three months and, upon listing, will be settled via Viet Nam Securities
Depository. —
IFC
launches EDGE green building certification system in Vietnam
The
launch took place in
IFC, a
member of the World Bank Group, is partnering with SGS Vietnam Limited to
offer EDGE, a programme that proves the business case for building green in
emerging markets.
EDGE
offers a free software that allows designers to choose technical solutions
while showing the extra costs to build green and the payback period. Better
design reduces energy and water use, which in turn lowers the monthly utility
bills for owners and tenants.
“We
encourage investors, developers, and practitioners to construct more
environmentally friendly buildings that reduce energy consumption and
mitigate climate change,” said Le Hoa Binh, deputy director of the Ho Chi Minh
City Construction Authority.
“EDGE is
an innovative, voluntary building-certification system that will help us
improve the environment for our people,” Binh added.
Buildings
account for more than 30 per cent of the total energy use in fast-growing
economies like
“Precise
and strategic changes can make a big difference in improving the efficiency
of buildings, which make up about a third of Vietnam’s total energy
consumption,” said Vivek Pathak, IFC regional director for East Asia and the
Pacific. “Resource efficiency will significantly reduce the operating costs
of buildings and put Vietnam on a low-carbon economic growth path.”
Vietnam
is a focus of IFC’s EDGE programme along with a few other priority countries,
which include Costa Rica, India, Indonesia, and South Africa.
Speaking
at the conference, Prashant Kapoor, IFC’s Principal Green Building specialist
emphasised the need to adopt green building tools like EDGE in Vietnam. “The
more and more developers start to use easy and affordable green ideas, market
will change fundamentally.”
SGS
Vietnam, a subsidiary of SGS S.A., a leading inspection, testing, and
certification company headquartered in Switzerland, will serve as a third-party
certifier of EDGE in Vietnam.
Over the
next six years, SGS Vietnam expects to award EDGE certifications to 20 per
cent of new construction projects in the country, equivalent to about 70,000
housing units. This level of penetration will help cut 19,000 metric tonnes
of greenhouse-gas emissions per year, avoid 43,500 megawatt-hours of energy
use, and save $8 million per year by 2021.
“We are
seeing strong interest from investors and developers in fulfilling the
increasing demand for eco-friendly and resource-efficient buildings in
Vietnam,” said Steven Du, managing director at SGS Vietnam.
“As EDGE
offers the most cost-efficient ways of bringing green features into building
design, we believe it will be effective for a wide range of properties,
including office, residential, and commercial buildings in Vietnam,” Du
noted.
Developer
Nam Long Investment Corp. is among the first to receive an EDGE certification
in Vietnam for its Bridge View Apartments. The design will cut energy use by
20 per cent, water use by 22 per cent, and construction materials by 27 per
cent, but adds only 2 per cent to the construction costs.
Three
developers were awarded with EDGE certification at the event. They are the
National Housing Organisation (NHO) for its First Home Premium apartment
building in Binh Duong province; Novaland Group for Orchard Garden Apartments
in Ho Chi Minh City, and The Ascent REIC Ltd for The Ascent – Thao Dien
Condominiums in Ho Chi Minh City.
PetroVietnam
signed EPC contract to expand Phu My NH3
PetroVietnam
Fertilizer and Chemicals Corporation, the producer and trader of Phu My
fertilisers together with the contractor consortium of Technip Group,
ThyssenKrupp Industrial Solutions and Petrovietnam Technical Services
Corporation (PTSC) last weekend signed the Engineering, Procurement,
Construction and Commissioning (EPC) contract for Phu My NH3 (revamping) –
NPK Complex.
The
PetroVietnam Fertiliser and Chemicals Corporation signed in Ha Noi yesterday
an EPC Contract to revamp the Phu My NH3 and NPK complex.
According
to Cao Hoai Duong, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo)
president and CEO, the fact that PVFCCo selects the world’s most advanced
technologies, the equipment of European origins and the contractor consortium
including the reputable group and companies experienced in large global
projects will ensure timely and safe project completion with high-quality
products of international standard.
“After
26 months of implementation, the project is expected to be brought into
operation in the second quarter of 2017, raising PVFCCo to a new height of
development,” said Duong.
He added
that in addition, this project was a typical demonstration for the use of
internal resources within the oil and gas industry to support the agriculture
of our country with high quality fertilizers.
Phu My
NH3 (revamping) - NPK Complex covers an area of over 15 hectares, on the land
of Phu My Fertilizer Plant at Phu My 1 Industrial Zone, Ba Ria - Vung Tau
Province.
The
total invested capital of this complex project is nearly VND5,000 billion
($237 million), with 70 per cent financed by bank loan and 30 per cent by the
owner’s equity.
It will
consist of two parts: NH3 Unit (revamping) and Phu My NPK Plant.
The NH3
Unit (revamping) will increase the current NH3 output at Phu My Fertilizer
Plant to 540,000 tonnes per year from the current 450,000 tonnes per year.
It will
use the technology from Haldor Topsoe A/S (Denmark).
The EPC
contractor consortium consists of Technip Group (previously also the
contractor for Phu My Fertilizer Plant) and Petrovietnam Technical Services
Corporation (PTSC).
According
to PetroVietnam Fertilizer and Chemicals Corporation, a part of NH3 produced
will be used as direct feedstock for Phu My NPK Plant, the other part will
satisfy the domestic demand for NH3, which is still in great shortage.
The
projected Phu My NPK Plant with capacity of 250,000 tonnes per year, is the
first in Vietnam to apply the chemical technology of Incro SA (Spain), the
most advanced technology in the world to produce high-quality NPK fertilizer
with guaranteed content of all necessary elements that are suitable to crops
at different growth periods and under different soil conditions.
The
contractor consortium is ThyssenKrupp Industrial Solutions and Petrovietnam
Technical Services Corporation (PTSC).
Vietnam
demands around four million tonnes of NPK every year, of which high quality
NPK fertilizer can only meet from 5 to 10 per cent.
The
products of Phu My NPK Plant will replace most of currently imported NPK.
Sun
Group to sell Hoa Xuan land plots
Real
estate developer Sun Group will launch the sale of 500 land plots in the Hoa
Xuan urban ecological zone in the central city of Da Nang on June 18.
The
Hoa Xuan project is expected to be one of the most worthwhile living
spaces in central Viet Nam, the group's representative said.
The
group said the luxurious and modern zone has a beautiful location and
favorable feng shui as it is located at the confluence of the Rivers Han, Co
Co and Cam Le, and is also close to Ngu Hanh Son Mountain.
Just 2km
from Da Nang International Airport, the urban ecological zone is located
adjacent to the 2-9 and Cach Mang Thang 8 main roads and next to a Metro
supermarket. It is also just 2km away from My Khe beach, 1km from a 600-bed
hospital and 700m from Chi Lang Stadium.
Sun
Group said the 450ha Hoa Xuan eco-urban project will have five-star green and
ecological architecture with fully functional townhouses, ecological villas,
marina and amusement park, besides commercial centres, hospital,
international school and an international-standard, 36ha mud bath and spa
zone.
Sun
Group said each plot costs upwards of VND437 million (US$20,045), and offered
seven per cent discount to buyers who completed their purchase before June
30.
The
group has also organised a lucky draw, with attractive prizes amounting to
several billion dong for customers, on June 18. The prizes include a Camry
2.5G car worth VND1.3 billion ($59,633), two plots of 100sq.m worth
VND500 million ($22,935) each, three land-purchasing vouchers of VND200
million ($9,174) each, and 20 SH Moze motorbikes worth 50 million ($2,293)
each, besides 50 vouchers, worth VND3 million ($137) each, for stay at the
French Village
Experts
urge Vietnam to invest more in renewable energy
Foreign
experts have called on Vietnam to invest more in renewable energy and draw up
proper policies to fuel economic growth of 6% towards 2020 and meet the
demand of foreign companies to relocate manufacturing facilities to Vietnam.
Speaking
at a seminar held in HCMC last week to release the Southeast Asia Economic
Insight report for quarter two of 2015, Scott Corfe, economic advisor at the
Institute of Chartered Accountants in England and Wales (ICAEW), said the
world is working towards green growth and Vietnam should follow this trend.
According
to Corfe, countries need to restructure their economies with a gradual shift
from manufacturing to services, develop manufacturing industries using less
energy, invest more in renewable energy and work out viable plans to protect
the environment.
While
the first two targets require certain development stages of the economy,
Vietnam has an opportunity to realize the third target as the country holds
much potential for renewable energy. However, the renewable energy output in
Vietnam remains modest while the country still opts for development of
coal-fueled thermal power plants due to low costs.
Christoph
Schill from the Green Growth Sector Committee at the European Chamber of
Commerce in Vietnam (EuroCham) shared Corfe’s view, saying thermal power
plants are still preferred in Vietnam’s power development plans. In
particular, under the Power Master Plan VII, coal-fired thermal power
facilities are designed to generate around 36,000 MW, accounting for 46.8% of
total electricity output in 2020. The capacity of thermal power will rise to
75,000 MW in 2030, or 56.4% of the total.
The
bigger share of thermal power is unreasonable as this will place bigger
impact on the environment. A study of the World Bank showed Vietnam is
capable of producing wind power of around 513,000 MW while the wind power
capacity is a mere 48.2 MW now and is expected to increase to 1,000 MW in
2020.
To ease
environmental pollution, Vietnam needs to seriously consider more investments
in renewable energy.
Schill
said Vietnam has huge potential for solar and wind energy development and
foreign investors have technologies and capital. However, they prefer renewable
energy projects in other Southeast Asia countries.
Schill
explained the buying price of wind power in Vietnam is only 7.8 U.S. cents
per kWh, which is much lower than 19 U.S. cents in Thailand and 21.8 cents in
the Philippines.
Besides,
investors are required to sell electricity to Vietnam Electricity Group (EVN)
and it is time-consuming for them to negotiate power purchase deals with the
country’s sole electricity buyer.
According
to experts, Vietnam will find it difficult to woo more investors to renewable
energy projects until the nation adjusts up the buying price of renewable
energy to the same levels of regional countries and EVN’s electricity
purchase negotiation process is transparent.
Study
shows investors care about costs, human resources in Vietnam
*
Foreign companies rank the availability of skilled labor, costs, domestic
market conditions and policies of the Government more important than energy
when they decide to invest in Vietnam, according to a recent study released
by EuroCham’s the Green Growth Sector Committee and the International
Institute for Sustainable Development (IISD).
The
study indicated that foreign companies considered energy as the least
important among the ten factors for their decisions to invest in Vietnam.
According
to the committee, a majority proportion of respondents said they could bear
nominal power tariff increases of 15% or more a year before planning future
investments and more than 65% could cope with price rises of over 10% per
year.
Companies
are concerned more about stable electricity supply than prices. Up to 65% of
respondents said they are not satisfied with power supply and two-thirds have
invested in back-up power sources. Some 73% said unstable power supply rather
than power price increases had affected the country’s competitiveness in
attracting investors over time.
The
committee said Vietnam should ensure stable power supply and long-term plans
for green power sources. However, this can only be achieved in case of higher
power buying prices to attract more private investments and improve a legal
framework for investments in this sector.
The
study was conducted with the foreign business community and 150 companies in
collaboration with organizations in Vietnam.
Business
forum discusses ways to improve competitiveness
The
mid-term Vietnam Business Forum 2015 will focus on solutions and measures to
grow private enterprises and make them be more competitive and be big enough
to join the global supply chain.
Vu Tien
Loc, Chairman of the Vietnam Chamber of Commerce and Industry and Virginia B.
Foote, Chairwoman of the United States-Vietnam Commerce Council, told
reporters at the press conference held in Hanoi on June 8.
They
mentioned a number of issues concerning the agenda of the forum on improving
the competitive capacity of enterprises to integrate internationally.
Prime
Minister Nguyen Tan Dung is expected to attend the event, which will open on
June 9.
According
to Loc, the present problem of Vietnamese economy is the capability of the
private economy, which has failed to grow over the past years.
Although
the private economy’s role and contribution to the economy is growing and
reached 49 percent last year but 33 percent comes from the household economy,
Loc said, emphasising the need to be addressed.
On her
part, Virginia Foote said that the forum would provide an opportunity for
enterprises to voice their difficulties and obstacles in the present business
environment in Vietnam.
Enterprises
could submit recommendations and suggestions to improve the relationship
between the Government, State agencies and enterprises or among enterprises
in order to raise competitiveness for not only the business community but
also the whole economy, Foote said.
Tourism
to become spearhead sector of South Central Coast
A recently
unveiled plan has established tourism as an important industry in the South
Central Coast of Vietnam by 2020 and a spearhead sector of this region by
2030 which will help to assert the country’s sea and island sovereignty.
The
region consists of Da Nang city and the seven provinces of Quang Nam, Quang
Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan.
Under
the plan, issued by the Vietnam National Administration of Tourism, the South
Central Coast will attract about 14 million visitors, including 4.5 million
foreigners, by 2020. The figures are expected to reach 25 million and 7.5
million by 2030.
The
Institute for Tourism Development Research said to fully tap into local
advantages, the regional localities need to develop marine, cultural and
ecological tourism simultaneously. It added that Da Nang, Nha Trang (of Khanh
Hoa province) and Phan Thiet (of Binh Thuan) should be developed into modern
tourism cities.
To
realise the plan, the localities should accelerate traffic infrastructure
upgrades, especially on inter-provincial roads and tourism ports in Da Nang,
Nha Trang and Binh Dinh’s Quy Nhon city.
While
international airports like Da Nang and Cam Ranh need to be expanded, more
air routes should be opened to connect the region with other localities
nationwide as well as global destinations, the institute said.
It also
suggested the South Central Coast offer more tours to faraway islands,
support traditional craft activities, and develop specific products for each
village to make the region more appealing to holiday makers.
The
South Central Coast boasts prominent advantages in marine tourism,
biodiversity and culture. It was home to the ancient Champa civilization, and
the world cultural heritage site of My Son Sanctuary highlights this rich
history. In the past, the region was also an intersection of the Dong Son
civilisation to the north and the Sa Huynh civilisation to the south of
Vietnam.
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 per cent over the
same period last year, including VND42.4 trillion ($1.94 billion) in May.
Taxes
from crude oil, however, dropped by 34 per cent against the same period to
VND30.3 trillion ($1.39 billion), reaching only 32.6 per cent 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 per cent to VND66 trillion
($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 ($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 ($33.56 billion) this year, of
which VND93 trillion ($4.27 billion) would be from crude oil.
VN
produce losing their edge
The
competitiveness of Vietnamese agricultural products, including seafood, is
decreasing in the global market, leading to a sharp fall in exports, experts
warn.
Agriculture
contributed just 0.28 per cent to the gross domestic product (GDP) growth in
the first quarter of this year, the lowest since 2011, it was reported at a
workshop held by the Institute of Policy and Strategy for Agriculture and
Rural Development under the Ministry of Agriculture and Rural Development
last Saturday.
Institute
Director Nguyen Do Anh Tuan said the fall in shipment was not being
rectified, and noted that the dropping demand had been compounded by the
emergence of strong rivals that left local products struggling to compete.
Unlike
Viet Nam, other countries float their currencies, which makes foreign
products cheaper, as is evident with coffee, shrimp and tra fish, according
to Tuan.
Cambodian
and Myanmar rice now are deemed of high quality, and they can easily
outperform Viet Nam in the Chinese market.
Coffee
exports, another currency earner for Viet Nam, has been affected by
Colombia's success in a re-cultivating programme that has made its coffee
more competitive than the Vietnamese product in both price and quality, he
said, adding that Brazil has also cut down prices to reduce its inventory.
Vietnamese
tra fish now has to compete with white-fleshed fish, which has strongly
developed in other countries, while more shrimp products from India,
Thailand, Indonesia and Mexico are hitting supermarket shelves in the US.
Local
fruits that are traditionally prominent in China, like lychees, plums, dragon
fruit and watermelons, are also facing challenges, as the northern neighbour
is rapidly expanding fruit cultivation, enabling it to export its fruits to
Viet Nam, instead of the other way around.
Other
workshop participants expressed concern about the quality of Vietnamese
produce and "misguided" strategies that inhibit the nation's
ability to meet global demand. For example, Viet Nam has mostly shipped
Robusta coffee while foreign markets prefer Arabica.
They
also pointed out a lack of market information, especially relating to China,
which further dulls Vietnamese edge in this critical market.
It would
be hard for Viet Nam to supply higher quality goods at lower prices unless it
makes scientific and technological breakthroughs in agriculture, Tuan said.
Director
of the Centre for Agricultural Policy, Dang Kim Khoi, stressed the need to
promote production of quality goods, saying Viet Nam should step up coffee
re-cultivation and the planting of first-rate rice varieties, control the
expansion of rubber plantations and the supply of tra fish.
He also
called for developing a support industry and processing technology.
Other
experts suggested the country provide aid to exporters to counter exchange
rate impacts. The aid can be in the form of reduced value added tax and
enterprise income tax, widening credit limits and making interest rate
adjustments.
Clear
rules needed for digital economy
In order
to develop a digital economy, Viet Nam needs to create an ecosystem and raise
awareness among non-internet companies, while improving the skills among
employees.
It also
should create regulations that are more clear and increasingly transparent.
John
Ure, Director of consulting and research firm TRPC made the recommendation at
a conference entitled Powering the Digital Economy in Viet Nam held in Ha Noi
yesterday.
"Viet
Nam's internet economy has been growing based upon its infrastructure,
especially the use of smartphones. It is currently making the transition to a
digital economy. The digital economy is very weak in Viet Nam, but today
there are examples of companies making good progress. They are paving the way
to the future," Ure said.
In three
months, TRPC conducted a study on current situations and the potential of
doing businesses on the internet in five Asian countries, including
Indonesia, India, South Korea and Japan. In Viet Nam, it performed research
on nganluong.vn, an online payment platform from Peacesoft Solutions
Corporation and GiapSchool, the first massive open online course (MOOC)
platform in Viet Nam, which was founded by Dr Giap Van Duong.
The
statistics in the report indicate the ongoing growth of the two platforms and
their potentials. Based on the results, the company recommended Vietnamese
authorities work with government agencies to ensure transparency and develop
regulations on e-commerce that are more clear. It also suggested Viet Nam
improve close partnerships between universities, research institutions and
industries.
"Compared
with Indonesia, Viet Nam has a stronger infrastructure, especially in the use
of smartphones, though they have been seeing growing in both countries. This
is also true with India. Viet Nam is more compact, making it easier for
people to access the internet, while India and Indonesia are very large
countries," Ure said.
"One
similarity among the three countries are their rules and regulations.
Sometimes they are not as clear as they should be. This puts investment at
risk because people don't like uncertainty."
Attending
to the conference, Peacesoft Deputy General Director Nguyen Huu Tuat
highlighted online car-sharing service Uber and Airbnb, which allows
travelers to rent rooms, apartments or houses, as examples of the development
of the worldwide digital economy.
He
further said that internet-based e-commerce only accounted for a small share
of revenues in Viet Nam, while businesses needed to become increasingly
digitised. He also said that Peacesoft had digitised its e-commerce services,
from moving products into warehouses to payment and shipping.
GiapSchool
founder and primary lecturer Giap Van Duong said that the rise of the digital
economy was an inevitable trend. His model had been carried out in many
countries and online courses had seen much support from professors and
growing participation by students.
However,
Duong admitted that the implementation of the model in Viet Nam faced many
difficulties, such as teacher shortages. "There are only a small number
of talents in Viet Nam who have excellent e-teaching methods," he said.
The
conference is one of activities that are part of the "Support programme
for businesses and handicraft villages to apply e-commerce to boost sales and
exports" project carried out by the Viet Nam Chamber of Commerce and
Industry (VCCI).
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 12 tháng 6, 2015
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