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BUSINESS IN BRIEF 15/6
Vietnamese
firms in
A
Vietnam Business Forum was held in
Addressing
the event, Ambassador to Japan Doan Xuan Hung said the Party and State have
defined that the 4.5 million overseas Vietnamese community is indispensable
part of the nation.
A number
of policies have also been issued to assist them integrate into the host
country and maintain solidarity with their fellows at home, he noted.
The
Vietnam-Japan bilateral ties are growing, while the Japanese economy is
recovering, creating abundant business opportunities in investment, trade,
technology, labour and tourism, he said.
The
diplomat said he hopes participants will contribute their ideas on how to
give more effective support to Vietnamese firms in Japan and encourage them
invest more in the homeland.
Meanwhile,
Duong Hoang Minh, head of a delegation from the Ministry of Industry and
Trade said the ministry has set up a consultation team to give businesses
abroad with updated policies and gather their opinions to propose suitable
support policies.
He
expressed his hope that together with the growing partnership between the two
countries and policies of the Party and State, overseas Vietnamese and
businesses in
Participants
at the event were also introduced to the competitiveness of Vietnamese
products and Vietnam-Japan partnership prospects, as well as the operation of
the Association of Vietnamese Businesses in
Indian
investors seek opportunities in Quang Binh province
Indian
investors are making a fact-finding tour to the central
At a
working session with provincial authorities on June 13, Managing Director of the
Bombay Finance India Satpal Singh Oberai highlighted promising projects in
tourism, industrial production, and trade.
The
total investment for the projects, including the cave tourism at the world
heritage site Phong Nha-Ke Bang national park, is estimated to reach over 550
million USD, he said.
Chairman
of the provincial People’s Committee Nguyen Huu Hoai said local authorities
will create all favourable conditions and design policies to support Indian
businesses.
JETRO
hopes to expand agriculture investment in Ha Nam
The
Japan External Trade Organisation (JETRO) hopes to expand investment in
agriculture in the
The
favourable transport system and proximity to
He also
highly valued the local investment environment and attraction policies,
noting that 40 Japanese firms are making investment in the provincial
industrial parks.
Local
official said Japanese firms could lease land of farmers or allow them to
contribute capital to realise agriculture investment projects, adding that
the province will support the infrastructure building such as roads,
electricity and irrigation system.
The
locality has zoned off an area of 1,100 ha to grow vegetable and fruits at
riverside regions which have favourable land, transport, irrigation, drainage
and flood-drought-proof systems, he said.
Developing
agriculture is defined as one of the key economic development tasks of the
province to increase farmers’ income and modernise rural areas, he added,
hoping that Japanese businesses will help the province to promote the
application of science and technology in the field.
From
last July, the provincial An Phu Hung company and the Japanese International
H.B.C company jointly implemented successfully the model growing organic
vegetable according to Japanese technology to serve domestic market and
exports, he noted.
After
the working session, Japanese businesses visited the organic vegetable and
fruit growing model in Ly Nhan district.
Dong
Nai exports over 3,200 tonnes of peppercorn in five months
The
southern
Pepper
farmers in Cam My and Xuan Loc districts and Long Khanh township are
embracing Global Gap, an internationally recognised set of farm standards
dedicated to Good Agricultural Practice (GAP).
In Cam
My alone, over 10ha of pepper have been earmarked for Global Gap farming, with
the end products fetching 10,000 – 20,000 VND (0.47- 0.95 USD) per kilo
higher than those grown in conventional farming.
It is also
home to over 1,700ha of pepper, or 30 percent of the total pepper area in the
province, said Director of the provincial Department of Agriculture and Rural
Development Pham Minh Dao.
Dong Nai
provided all funding for varieties and 30 percent of funding for fertilisers
and pesticides within four years since cultivation.
According
to the department, Dong Nai boasts over 8,000ha of pepper, mostly in
The
province is one of the three largest pepper-growing localities nationwide,
annually supplying about 20,000 tonnes to the market.
A number
of domestic businesses have come forward to invest in building a new terminal
at
The
Airports Corporation of Vietnam (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 percent of the
total investment capital, Thang Long Air Services Corporation, AOV Investment
Corporation, and Hanoi 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 3.2 trillion VND
(147.4 million USD).
The
40,000sq.m construction, is scheduled to start by January next year at the
latest and is expected to be completed by June 2017 to serve 2.3 million
international visitors by 2022 and four million passengers by 2030.
Vietjet
receives 25th aircraft
The
low-cost carrier Vietjet Air welcomed the latest member to its expanding
family of Airbus A320 and A321 aircraft at
According
to Vietjet, the brand new Airbus A320, known for fuel-efficiency and exhaust
fume reduction features, is the 25 th plane of its fleet.
The
addition is expected to help Vietjet meet the increased travel demand during
this summer holiday season.
The
airline currently operates 150 flights per day on 30 domestic and
international routes across the region, including destinations such as
During
the ongoing promotion campaign, “12h, It’s time to Vietjet!”, it has offered
additional 2,000 flights and put on sale over 35,000 promotional tickets
starting at 199,000 VND for short-distance trips and from 399,000 VND for
longer distance, applying to flights from now through August 30.-
The
Hanoi Customs Department will accelerate its use of information technology
(IT) in the customs process to promote transparency, simplicity, and to
modernise the sector.
Increased
use of IT is among the key activities planned for the 2016-20 period, as set
by the department at a recent conference.
Other
tasks include implementing a mechanism for companies to enjoy special
priority in customs procedures and security, in line with World Customs
Organisation standards. Also, rules will be put in place for applying
national and ASEAN single-window mechanisms, as well as ensuring fair,
transparent and efficient tax collections.
In
addition, over the next five years the city's government will equip its staff
with world class professional and technological skills to improve trade and
tourism activities, the conference heard.
Director
of the department, Nguyen Van Truong, highlighted favourable conditions that
assisted in reforms and modernising operations over the past decade, adding
that its sub-departments are expanded to outlying provinces, such as Phu Tho,
Vinh Phuc and Yen Bai, making it easier to handle new procedures.
He
emphasised procedures for assessing risk management throughout the customs
process, which have helped the sector cut down the time required to deal with
procedures.
Further,
the staff's abilities and sense of responsibility have improved substantially,
he noted.
BIDV
predicts forex market uncertainty in the long term
The
foreign exchange market might face uncertainty with relatively increased
pressure in the medium and long term, according to a research group of the
Bank for Investment and Development of Vietnam (BIDV).
The
research group forecast that the foreign exchange rate might reach 21,850 VND
against the dollar by the end of the second quarter, 40 VND away down from
the ceiling rate, reported the website vneconomy.vn, adding that no huge
fluctuations are expected to occur within this month.
The
exchange rate would hardly fall dramatically unless supply of foreign
currency supply increased, according to researchers.
The news
website reported that from the beginning of June, the State Bank of
On May
7, the central bank raised inter-bank rate by 1 percent for the second time
this year to 21,673 VND per dollar, leaving no room for any adjustment this
year as it had earlier committed not to weaken the dong by more than 2
percent in 2015.
On May
27, the central bank's Deputy Governor Nguyen Thi Hong signalled that the
central bank could sell the dollars if necessary, which help calm the forex
market.
The
research group predicted that the exchange rates would fluctuate around
21,800 VND and 21,820 VND this month and around 21,700 VND and 21,890 VND in
the third quarter of this year.
According
to a market report by BIDV Securities, 1 percent adjustment of VND/USD rate
in May would help boost exports and improve competitiveness of Vietnamese
products.
However,
the report said that attention should be paid to changes in the world market,
especially the possibility of rate rises by Federal Reserve System (Fed).
In Fed
raised rates, the greenback would become stronger which would create pressure
on the forex market of
Although
Dong
Nai encourages Japanese investment
Dong Nai
pledges to create a favourable business climate for Japanese companies, said
Nguyen Phu Cuong, Deputy Chairman of the provincial People’s Committee.
He made
the remarks during a meeting on June 12 with a Japanese delegation led by the
President of the Japanese Business Association in Ho Chi Minh City (JBAH)
Tsutomu Sakagami.
Cuong
said the province encourages foreign businesses to invest in high-tech
agriculture, real estate, and tourism.
Dong Nai
is currently home to about 1,500 FDI projects, worth more than 27 billion
USD. Of which,
For his
part, Tsutomu Sakagami highlighted Dong Nai’s potential in attracting
investment in agriculture and industry, saying Japanese businesses will
invest in the province in order to welcome the Trans-Pacific Partnership
(TPP).
Dong Nai
has recently received a number of Japanese businesses who wish to invest in
the province.
On June
3, a delegation of Japanese enterprises from
Earlier,
the province and the Bureau of Economy, Trade and Industry of Japan’s Kansai
region signed an economic cooperation framework agreement, with a focus on
links in support industry.
ASEAN
Economic Community discussed in London
Business
executives in Asia and Europe met in the Asia House in
The
participants discussed about the formation of the ASEAN Economic Community
(AEC) and opportunities the AEC can offer.
Addressing
the meeting, ASEAN Secretary General Le Luong Minh said that more than 90
percent of 506 measures of the AEC have been implemented since the blueprint
on the AEC was approved in 2008.
Regardless
of impacts from the economic recession, ASEAN countries have achieved many
economic achievements and have been revised and issued policies to turn the
region into an independent market and production level with the free flow of
goods, services, investments and skilled workers.
He
expressed his belief that the AEC will be formed as scheduled and the
implementation of the AEC measures send a strong message that principles, frameworks
and measures being implemented will move the region to a real economic
community.
Business
leaders such as Min Yih Tan, General Director in charge of the Shell
Corporation’s Global Retail and Trade Strategy, Klaus Landhaeusser, head of
the Robert Bosch Corporation’s External Affairs and Governmental Relation in
Delegates
at the conference also discussed about the rising competitive environment in
ASEAN as well as enterprise owners’ management in labour, capital and
investment.
The AEC
which is formed late this year comprises ten countries – Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and
Vietnam – with a population of over 600 million and a combined gross domestic
product of more than 2,000 billion USD.
Three
exhibitions related to the support industry, Metalex
Organised
by the Japan External Trade Organisation (JETRO) in
Two
other exhibitions, Metalex
Metalex
Vietnam, the biggest of its kind in the country, will open doors for
Vietnamese industry to enhance product quality and productivity, as well as
improve production lines with new machine tools, metalworking technologies,
and solutions provided by 500 brands from 25 countries.
To be
organised at the Saigon Exhibition and Convention Centre from October 8-10,
the three expos will help boost the development of
Ha
Industrial
parks (IP) in the
According
to the provincial IP Management Board, local IPs are currently employing
40,000 labourers, mostly locals whose wage is up to 4 million VND (190 USD)
per month.
The IPs
have made increasing contribution to the province’s industrial production.
Last year, the parks produced 13.14 trillion VND (625 million USD) worth of
industrial products, accounting for over 75 percent of the province’s total
industrial value, a sharp rise from 6.48 trillion VND (308 million USD) , or
64.5 percent of the provincial total output, in 2011.
Last
year, enterprises in the IP contributed over 1.02 trillion VND (48.57 million
USD), or 30 percent of the province’s budget revenues.
Tran
Xuan Duong, head of the board attributed the high investment attraction
result to the province’s strict implementation of commitments to investors.
Besides, Ha
Viettel
customers in
Nexttel,
a brand of the military-run telecommunications group Viettel, has increased
its Cameroonian users to 2 million after 9 months in the Western African
market.
With
over 1,100 base transceiver stations (BTS), Nexttel has provided 2G coverage
for 70 percent of
By the
end of May, the group had raked in 29 million USD from the
To date,
Viettel has conducted business in nine countries of Asia, Latin America and
Vietnam’s
economic policies discussed at seminar in France
A
seminar was held in Paris on June 11 focusing on attracting foreign
investment inflows in Vietnam and improving Vietnamese business
competitiveness with input from scholars residing in France and the US.
The
seminar is the follow-up to a similar dialogue themed “Reforming the
Vietnamese economy: the role of new strategic partnerships” hosted by the
Trade Office of the Vietnamese Embassy in France last February, said
Commercial Counsellor of Vietnamese embassy in France Nguyen Canh Cuong in
his opening speech.
Professor
Tran Ngoc Anh, public policy lecturer from the US’s Indiana and Harvard
universities, stressed the significance of stepping up equitisation.
He also
mentioned the activities of V-idea (Vietnam Initiative for Development and
Economic Analysis), a global network of independent scholars at home and
abroad contributing ideas to Vietnam’s development cause.
French-Vietnamese
banking expert Ghislain Nguyen presented an analysis of Vietnam’s trade
policy and banking system, both of which are key to Vietnam’s integration
into the world economy.
For his
part, Editor-in-chief of Bordelex & Trade Policy Dreyer Lana spoke of the
European Union (EU)’s trade policies and issues regarding the Vietnam-EU free
trade agreement, negotiations for which are in their final stages.
Jacques
Fourvel, advisor to the President of Casino Group, parent company of the Big
C supermarket chain in Vietnam, hoped for additional foreign investment
protection from the government.
Participants
urged their proposals be considered towards bringing benefits to Vietnam.
The
event was co-hosted by the Trade Office of the Vietnamese Embassy in France
and the Association of Vietnamese Scientists and Experts in France.-
Dong
Nai active in building logistics infrastructure plan
The
northern province of Dong Nai is striving to build a thorough logistics
infrastructure system plan to meet the increasing demand of goods transport
between sea ports and industrial parks in the locality.
Speaking
at a meeting to examine and assess the locality’s plan through 2025, Vice
Chairman of the provincial People’s Committee Tran Van Vinh asked relevant
departments and sectors to proactively support consulting units towards
fulfilling the plan within the year.
Dong Nai
has become the leading locality in attracting investment, given its strategic
location on key transport routes such as the national north-south railway,
the national Road No. 20 connecting with the Central Highlands and National
Roads No. 51 and 56 connecting with southern coastal Ba Ria-Vung Tau
province. It is also close to key seaports in the south and the Tan Son Nhat
international airport.
However,
the sluggish pace of logistics development planning is the root of weakness
in the local logistics infrastructure network, which is essential in
connecting the locality with major southern seaports such as Cai Mep-Thi Vai
and Ho Chi Minh City .
According
to consulting units, it is necessary to rapidly build a logistics service
network, helping reduce expenses for production and trade activities in the
province as well as in southern key economic zones in general.
Looking
forward, the locality will focus on studying and planning logistics service
development; building a plan for developing Dong Nai port into a logistics
centre; and setting up a forum to seek measures to promote logistics services
in the locality.
Nguyen
Thi Bach Mai, General Director of the Dong Nai Port JSC, shared that there
are no links between small and medium-size enterprises operating logistics
sector, resulting in their limited role as sub-contractors for foreign
logistics firms.
Additionally,
the quality of the workforce serving the sector does not satisfy the
development demand and leads to ineffective industry activities, she added.
Japanese
capital moves towards trade sector
Japanese
investors in Vietnam are likely to shift their capital to the trade and
service sectors given the advantages of the ASEAN-Japan Comprehensive
Economic Partnership Agreement (AJCEP) in 2015-2019 and the ASEAN Trade in
Goods Agreement (ATIGA) in 2015-2018.
According
to the Ministry of Finance, more than 3,200 tax categories on materials,
machines and equipment, electronics and spare parts from Japan have enjoyed a
zero-percent tax rate from April 2015 as a result of the Vietnamese
preferential tariff within the AJCEP framework.
Furthermore,
many goods imported from regional countries are expected to be cheaper than
domestically made products under the ATIGA, the ministry said.
With
these agreements, the Japanese have more reasons to focus on trade and
service development projects in Vietnam , it added.
General
Director of Aeon Vietnam Yasuo Nishitohge told the Dau Tu (Investment)
newspaper that the new tariff policy has had a positive impact on retail
groups like Aeon, adding that the import tax reduction has enabled the
company to diversity its products and sell goods at reasonable prices and
with high quality for Vietnamese customers.
Another
retail giant from Japan, Family Mart, affirmed that it will not withdraw from
the Vietnamese market. A representative from the company said it plans to
have 100 stores in Vietnam by 2015 and increase the number to 800 in the next
five years to make up around 30 percent of the Vietnamese market share.
According
to a survey conducted by the Japan External Trade Organisation (JETRO),
Vietnam granted investment licences to 517 Japanese investment projects last
year, including 342 new ones and 175 for business expansion.
The
organisation revealed that the total investment capital of Japanese firms in
Vietnam in 2014 was as much as 60.9 percent of that from the previous year;
however, investment projects in the fields of trade and services increased in
volume, including 85 percent of under-five-million-USD projects.
The
trade activities of Japanese firms in the fields are expected to be more
bustling in the coming time due to their competitively high quality products,
according to the consulting services corporation RECOF.
Many
Japanese enterprises aim to expand their operations in Vietnam, especially in
non-banking financial services, transport, technology, hotels, marketing and
retail, it said.
For
example, the Japan Logistic Systems Group is pouring investment to build
store houses in Hanoi, Da Nang and Ho Chi Minh City; while the Nissin Group
is partnering with Vietnam Railways to operate a cargo transporter specially
designed for Japanese firms.
Banks
strive to expand alternative payment methods
Domestic
banks have undertaken numerous efforts to expand services and provide alternative
transaction methods in a bid to enhance their competitiveness and meet client
demand.
These
form part of activities to implement the State Bank of Vietnam’s plan, aiming
to bring the rate of cash transactions to below 11 percent in the 2011-2015
period.
The
Vietcombank Securities Joint Stock Company together with the Nhat Ha 3 hotel
in Ho Chi Minh City launched discount programmes for Vietcombank card holders
to encourage payment by cards over cash.
The bank
also plans to develop mobile-based banking transactions to tap the potential
resulting from increased smartphone use.
Meanwhile,
Dong A Bank aims to import some 300 auto banking transaction points this year
to reduce cash transactions.
In a
similar move to enhance competitiveness, Viet A Bank fostered the application
of technology to expand its services and improve its service quality.
In late
2014, the bank invested 2 million USD in developing an online transaction
system.
According
to the SBV, cash transactions represented 12.3 percent of the total means of
payment at the end of 2014, a decrease from 12.6 percent in 2013 and 13
percent in 2012.
MSN
subsidiary issues bonds worth 412 million USD
Masan
Consumer Holdings (MCH), a wholly-owned subsidiary of Masan Group Corporation
(MSN), has signed agreements to issue five-year bonds worth 9 trillion VND
(412.8 million USD).
The
buyers will be Vietcombank and other local commercial banks. Vietcombank
Securities Company arranged the deal which was inked on June 10, Masan said.
The
group said it was the largest-ever private sector corporate bond deal in
Vietnam's capital market.
The
proceeds will be used to simplify Masan Group's consolidated balance sheet,
including the repayment of existing debts, and reduce its overall expenditure
as market conditions become more favourable.
In
connection with the transaction, Vietcombank solidified its position as the
priority corporate banking partner for Masan Group's consumer-related
businesses.
Recently,
Masan Group penetrated Vietnam's domestic consumption market by establishing
Masan Nutri-Science, a platform that aims to close the productivity gap in
the animal protein sector between Vietnam and the developed world, starting
with the animal feed sector.
Masan
Group is on track to earn 2 billion USD in revenue in 2015. Validation of
Masan Group's success and strategy was further provided by global business
media company Forbes, which named Masan Group as the 20th most-innovative
growth company in the world in a list of 200 fast-growing companies in 2015.
It was the only Vietnamese company to be mentioned.
MSN
shares closed at 80,000 VND (3.7 USD) each on the HCM City Stock Market on
June 11.
Power
tariffs to follow market mechanism
Local
retail electricity price will be adjusted under a market mechanism by 2016,
said Minister of Industry and Trade Vu Huy Hoang.
Hoang
said that power supply has been better since 2011, with preventive capacity
meeting 25-30 percent of the country's total demand.
He noted
that power price has to follow a market-based mechanism under the
Government's supervision to ensure profits. Vietnam will implement a price
roadmap transparently to make investors feel safe about investing in the
sector.
However,
most businesses, especially FDI firms, expressed their concern about power
shortage in the southern region.
A
Vietnam Business Forum (VBF)'s report revealed that FDI companies have not
been worrying about increasing power prices as much as about unstable supply.
The Government can increase the electricity tariff of enterprises that
consume more power while ensuring adequate supply.
Responding
to this situation, the minister remarked that it would require the
Electricity of Vietnam (EVN) to ensure capital for a proper power
transmission system.
"We
have asked the EVN to implement nine supplemental power projects to supply
electricity to the southern region, following a forecast of power shortage in
2017-18," he added.
Binh
Duong reviews investment activities
Southern
Binh Duong province has attracted nearly 2,550 foreign direct investment
(FDI) projects between 2010 and 2015, bringing the total registered capital
to 21.5 billion USD, said Tran Van Nam, Chairman of the provincial People’s
Committee.
It is
estimated that FDI capital will exceed 1 billion USD this year, Nam noted.
According
to the provincial Department of Investment and Planning, the projects have an
average capital of less than 10 million USD each, and the current largest
among them is a real estate Binh Duong New City project invested by
Japan-based Tokyu Corporation at a cost of 1.2 billion USD.
As many
as 12,370 firms received business licenses from 2010 to 2015, raising the
total number of local companies to nearly 19,640, a two-fold increase from
the outset of the decade.
Total
registered capital also grew to over 146 trillion VND (6.7 billion USD), 2.2
times higher.
During
the period, total investment in the province reached 263 trillion VND (12.06
billion USD), 8 percent of which was contributed by the state budget and 43.1
percent was sourced from FDI.
The
industry will continue to be the locality’s key economic driver to boost
urban, service and trade development in the next five years.
The
province’s exports are also expected to expand at an average rate of 19.5
percent annually. Its foreign trade revenue is forecast to exceed 20 billion
USD this year, including 16 billion USD imports and 4 billion USD exports.
Hanoi
to hasten IT application in customs process
The
Hanoi Customs Department will accelerate its use of information technology
(IT) in the customs process to promote transparency, simplicity, and
modernity in the sector.
Stronger
IT application was among key planned activities for the 2016-2020 period, as
set by the department at a conference on June 11.
Other
tasks included implementing a mechanism for companies to enjoy special
priority in customs procedures and security in line with the World Customs
Organisation standards; applying the national and ASEAN single-window
mechanisms; and ensuring fair, transparent and efficient tax collection.
Over the
next five years, the city’s sector will equip its staff with first-rate
professional and technological skills to facilitate trade and tourism
activities, the conference heard.
Director
of the department Nguyen Van Truong highlighted favourable conditions to
reform and modernise over the past decade, adding that its sub-departments
were expanded to outlying provinces such as Phu Tho, Vinh Phuc and Yen Bai,
making it easier to handle procedures.
He
emphasised risk management throughout the customs process, which has helped
the sector cut down the time required to deal with procedures.
The
staff’s capacity and sense of responsibility have also improved
substantially, he noted.
Tuna
value likely to drop in Q2
Vietnam would
continue to decrease tuna's export value in the second quarter of this year,
partly due to its falling price on the world market, the Vietnam Association
of Seafood Exporters and Producers (VASEP) forecast.
According
to the association, the export value of tuna is expected to see a
year-on-year reduction of 5 percent to 123 million USD in the second quarter.
The
decline can be partly because of a drop in tuna price on the world market to
under 1,000 USD per tonne, while the global output of tuna is expected to
increase, the association said.
The
other reasons for the decline include the weak Yen and Euro against the US
dollar and a lower demand for tuna in Vietnam's major export markets, Vietnam
Trade Promotion Agency reported.
In the
first four months of this year, Japan, one of the top three tuna export
markets of Vietnam, dropped to the fourth place, after the US, the European
Union, and the ASEAN market, because the export value of Vietnamese tuna to
Japan dropped 38 percent compared with the same period of last year.
However,
the tuna exports from Vietnam to the US recorded a year-on-year increase of 3
percent to 58 million USD in the first four months, the association said.
The
association expects that the tuna exports to the US will continue to increase
in coming months to recover the national tuna export value for this whole
year. The US market holds 40 percent of Vietnam's total tuna export volume,
the Thoi bao Kinh te Vietnam (Vietnam Economic Times) newspaper reported.
The
VASEP also believes that Russia will emerge as one of Vietnam's potential
tuna export markets in future, as the free trade agreement signed between
Vietnam and the Eurasian Economic Union (EEU) on May 29 will create
favourable conditions for Vietnamese fisheries exports to Russia, including
tuna, to jump sharply.
Over the
past few years, Russia has been one of the major export markets of Vietnamese
fisheries, the association pointed out.
Tran
Thanh Hai, Deputy Head of the Export Import Department under the Ministry of
Industry and Trade, noted that three sectors - fisheries, garment and
footwear - can gain many advantages from the free trade agreement with EEU as
it has zero import tariffs.
According
to the General Department of Customs, the export value of Vietnamese tuna to
Russia had a year-on-year surge of 218.4 percent to 1.65 million USD in the
first four months of this year.
Meanwhile,
the World Trade Centre's statistics show that Vietnam was the third largest
tuna exporter to Russia in the first quarter of this year, after Thailand and
China.
Agricultural
produce dominates parliament sessions
Minister
of Industry and Trade Vu Huy Hoang on June 11 was grilled on policies to
promote the selling of farm products, a burning issue that National Assembly
(NA) deputies had questioned Minister of Agriculture and Rural Development
Cao Duc Phat earlier the same day.
NA
member Nguyen Si Cuong from Ninh Thuan province said voters were extremely
concerned about how watermelons from farmers in the central region were sold
to middlemen for just a few hundred VND (less than 4 US cents) per kilogramme
while people in Hanoi had to pay 18,000-20,000 VND (about 0.9 US cent).
Tran
Khac Tam, NA member from Soc Trang province, said purple onions from Soc
Trang had been sold at cheap prices for the past three years.
“The
trade ministry promised that farmers should be able to benefit from stronger
cooperatives and find output markets for purple onions, but how had these
activities been done in the past three years?” he said.
Minister
Hoang said there had been difficulties exporting farm products due to
unforeseen changes in many export markets. However, Vietnam had signed many
free trade agreements recently, paving the way for more competitive export
markets.
Hoang
said Indonesia once imported 80,000-100,000 tonnes of purple onions from
Vietnam, but recently it encouraged its own farmers to grow the onions.
He said
his ministry had not forecast the situation but suggested that localities
must reassess the growing plan for this product as exports would be more
difficult in future.
On the
watermelon situation, the official said the cost of taking watermelon to
markets made the difference in prices.
In a
report sent to the NA before the question-and-answer session, the trade
ministry said one of the keys to sales was to spur domestic consumption. For
example, the report estimated that 60 percent of this year’s lychee
production of 200,000 tonnes would be sold in the domestic market and 80,000
tonnes exported.
The
ministry has been working with other ministries and localities to sell to
domestic consumers and build new channels to export to the US and Australia.
Nojima
now largest TAG shareholder
Japan's
Nojima Electronics has bought another 3.7 million shares of Tran Anh Digital
World JSC (TAG), the Vietnam Securities Depository said.
The
buying of the shares, which belonged to Aureos Southeast Asia Fund and are
equal to a 21 percent stake in TAG, has increased the total holding of the
Japanese corporation to 30.92 percent, making it the largest foreign shareholder
of TAG.
TAG is
one of the leading electronics firms in northern Vietnam, with a chain of 15
stores. It plans to open seven to nine more stores to serve the northern
region.
In the
first quarter of this year, TAG earned 872.67 billion VND (40 million USD) in
revenue, an increase of 44 percent over the same period last year and
after-tax profit of 3.9 billion VND (178,899 USD), up 11.5 percent year on
year. It plans to earn total revenue of 3.3 trillion VND (151.3 million USD)
and net profit of 7.8 billion VND ( 357,798 USD) in 2015.
According
to Bloomberg.com, Nojima Corporation operates consumer electronic chains that
specialise in computers and communication products. The company also sells
entertainment-related items such as game software and CDs, and household
appliances, and has franchise stores in Kanagawa Prefecture.
Each TAG
share closed at 24,000 VND (1.1 VND) on June 10 on the Hochiminh Stock
Exchange.
Sanofi
expects to open 75 million USD plant in Q3
French
drug firm Sanofi expects its new plant in Ho Chi Minh City to begin
production in the third quarter.
Eric Ng,
who was recently appointed general manager of Sanofi Indochina, told local
media on June 9 that the 75 million USD plant in the Saigon High-Tech Park in
HCM City's District 9 is his company's largest ever investment anywhere and
also the most significant foreign investment in the Vietnamese pharmaceutical
industry.
The
plant will also house a research and development centre, which will focus on
new formulations using existing compounds.
"It
will efficiently meet the fast growing demands of the local market and serve
as an export platform to Asian ones, including demanding markets like Hong
Kong and Japan," Ng said.
New
law to govern derivatives sector
The
Prime Minister has issued Decree 42/2015/ND-CP on derivatives and the
derivative trading market in Vietnam, which will become valid next month.
Under
the new decree, companies that trade derivatives for profits on the
derivative trading market must have at least 600 billion VND (27.8 million
USD) in chartered capital.
Brokerage
firms on the new market should have at least 800 billion VND (37 million USD)
in chartered capital and will be allowed to trade derivatives for their own
profits.
Firms
should also meet the requirements set by the Ministry of Finance on profit,
disposable capital, and professional procedures.
Securities
firms and commercial banks may sign up to become clearing members at Vietnam
Securities Depository (VSD) that will settle trading orders if they satisfy
some regulations on equity, including that the equity of a direct clearing
member remains less than that of a general clearing member.
In
detail, a commercial bank should have equity of at least 5 trillion VND
(231.5 million USD) to become a direct clearing firm and at least 7 trillion
VND (324 million USD) to become a general clearing member.
A
securities firm should have at least VND900 billion ($41.6 million) to become
a direct clearing member and at least 1.2 trillion VND (55.5 million USD) to
become a general clearing member.
hus,
15-20 securities firms that meet the requirements set by the Finance Ministry
will operate their businesses on the Vietnam's derivative trading market.
In order
to prepare for the promising derivative market, large securities companies
have issued more shares to increase their chartered capital and support their
clients in this new market.
For
example, Bao Viet Securities Company (BVS) in its annual shareholder meeting
decided to increase its chartered capital by 1 trillion VND (46.3 million
USD), which should not be a problem for the company.
Nhu Dinh
Hoa, BVS Director General, said derivatives will have a bright future in
Vietnam, just like at the Taiwan Stock Exchange, where derivative trading
occupied 70 percent of the total securities market.
Other
large securities firms, including Vietinbank Securities Joint Stock Company,
Vietcombank Securities Joint Stock Company and Saigon-Hanoi Securities Joint
Stock Company also plan to raise their capitals to enter the derivative
market.
Derivative
is a security on the securities market which is used to reduce financial
risks, protect initial investments, and generate profits for investors.
On the
securities market, no matter how stocks and bonds change in market values,
derivatives will maintain their initial market values.
Derivatives
are futures, options, and forwards that are traded on the stock exchange and
listed securities that are traded on the stock exchange.
Stock
exchanges, including the Hanoi Stock Exchange and the Hochiminh Stock Exchange,
are the only legal organisations can hold derivative trading activities.
Nearly
18,000 cars sold in May
Nearly
18,000 cars were sold in the domestic market during May 2015, down one
percent from the previous month, but up 47.69 percent from May last year.
The
Vietnamese car manufacturing company Thaco led the market with 6,603 cars
sold. Toyota came in second with 3,880 cars and Ford Vietnam sold only 1,747
cars during the period.
The
sales of commercial cars in May reached 7,796 units, up five percent, and
tourism cars 8,946 units, down 5.1 percent. Specialised cars hit 1,179 units,
down 10 percent from the previous month.
The
number of cars assembled in the country was 14,032, a 0.4 percent increase.
Vietnam imported 3,889 cars, down 7 percent from April.
Total
sales of the sector in the first five months of this year reached 84,806
cars, surging 58 percent from the same period last year. Of the figure,
tourism cars rushed 88 percent and commercial cars rocketed 103 percent.
The
report was carried out by the Vietnam Automobile Manufacture’s Association
(VAMA).-
Thanh
Hoa works to pique foreign interest
Authorities
in central Thanh Hoa province held talks with heads of Vietnamese
representative agencies in foreign countries on June 11 in a bid to promote
local potential overseas.
According
to Nguyen Dinh Xung, Chairman of the provincial People’s Committee, Thanh Hoa
has formed affiliation with localities in a number of nations, including
Laos, the Republic of Korea and Germany.
There
are currently 57 foreign-funded projects worth more than 12.6 billion USD and
17 official development assistance programmes valued at almost 11.4 trillion
VND (531.2 million USD) across the province.
Local
seniors urged Vietnam agency heads to present the provincial potential and
strengths worldwide to forge business links, boost tourism and attract
investors, among others.
The
representatives, whose three-year tenures start in 2015, noted increasing
international cooperation can bring both development opportunities and
challenges for Thanh Hoa.
They
pledged to support the province to build its global connections.
Manpower
capacity in Vietnam’s tourism and hospitality sector intensified
A
conference on reviewing the project to intensify the manpower capacity in
tourism and hospitality sector in Vietnam was held in Hue city, Thua
Thien-Hue province on June 11.
The
project funded by the Luxembourg government has a total investment of 3.95
million EURO.
The
project has been carried out since 2010 by Vietnam’s Ministry of Culture,
Sports and Tourism and the Luxembourg Cooperation and Development Agency
(LuxDev). The project is scheduled to conclude in late June 2015.
Beneficiaries
of the project are lecturers, teachers and students of nine tourism and
hospitality schools and colleges in cities nationwide including Hanoi, Hai
Phong, Da Lat, Nha Trang, Vung Tau, Can Tho and Ho Chi Minh City.
According
to the project management board, the project has invested in equipping, and
classrooms, installing computer systems of all participating schools.
The
project has helped 541 officials and teachers take local and international
training classes on skills, teaching methods and administrative capacity.
Addressing
the event, Deputy Minister Dang Thi Bich Lien praised the support from the
Luxembourg government in helping tourism training schools in Vietnam build
their infrastructure, bolster management competency and contribute to
increasing training quality for the sector.
The
project is the third supporting Vietnam’s tourism funded by the Luxembourg
government since 1997.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 14 tháng 6, 2015
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