|
BUSINESS IN BRIEF 17/6
Tuna
exports to
New
figures from the Vietnam Association of Seafood Exporters and Producers
(VASEP) show that
Shipments
of tuna fish to the leading Eurasian Economic Union (EEU) nation in the four
months leading up to May shot up over twofold last year’s same period, a good
omen of things to come when Vietnam-EEU trade pact comes into full force.
The EEU
is a Russia-led trade bloc established in 2015 on the basis of the Customs
Union of Russia,
Tran
Thanh Hai, deputy director of the Import-Export Department, said seafood is a
top market that should benefit for the agreement along with the garment and
footwear industries.
Hai said
the EEU has agreed in principle to remove import tariffs on substantially all
tuna and other seafood exports soon after the agreement comes into effect,
hopefully later this year or early next year.
The
robust 11% expansion in the Russian market for tuna fish in the early months
of the year is a good sign for the seafood industry said Hai, adding that it
has helped to offset sharp declines for the same period for other major
markets.
Most
notably, during the period tuna exports to
Tuna
exports to the EU also dipped 20% for the first four months, of which the
The
Exports
to the
The most
important thing is for
BNI
Chairman to visit Vietnam
Dr Ivan
Misner, founder and chairman of BNI, the world’s largest business networking
organization, will be in
Dr.
Misner has been called the ‘Father of Modern Networking’ by CNN and the
‘Networking Guru’ by Entrepreneur Magazine and featured in the
The
exchange is held annually by BNI Vietnam aiming to connect BNI entrepreneurs
nationwide, offer business opportunities for each member, and help businesses
expand their horizons.
This is
the first time the event has been held in
Established
in the
At
present it has affiliates in 60 nations around the globe with nearly 170,000
members. Each year, BNI is credited with generating business opportunities
valued in excess of US$8.6 billion.
BNI
Vietnam was established in 2010 by Vietnamese entrepreneur Ho Quang Minh and
currently has branches in 11 provinces nationwide with more than 1,700
members.
Central
city wins Transformational Business Award 2015
Central
Danang city has received the Transformational Business Award 2015 -
Excellence in City Transformation at the Transformational Business Conference
and Awards 2015 in
Vice
Director of the city's Investment and Planning Department Huynh Van Thanh
said the award, which is given by the Financial Times and International
Finance Corporation, recognises those cities that, since 2010, have
demonstrated tangible progress in citywide, integrated reforms across one or
more of the following five parameters: environmental, social, governance,
economics, and services.
He noted
that Danang surpassed 191 entries from 167 organisations across 140 countries
to make it to the final shortlist, together with six other cities from
Thanh revealed
they had submitted the GIZ Nexus project as candidate for the award.
"The
GIZ Nexus project promotes Danang as one of the most advanced cities in
Nexus's 10 Asian partner countries," Thanh remarked.
He added
that the Urban Nexus project, financed by the German Federal Ministry of
Economic Cooperation and Development, supports ten cities in six Asian
countries to promote ‘nexus-compliant' integrated resource management to
fully utilize interaction and synergies among three nexus sectors, namely water,
energy, and food security.
Danang's
GIZ Nexus project has demonstrated progress in citywide reform in economic
development, urban planning, environmental management, and social and
governance from 2010.
In 2012,
at the 44th APEC energy meeting, Central city was selected as an APEC city
for its Low-Carbon Model Town Project.
Domestic
coal consumption up 17% in June
The
Of the
monthly figure, 100,000 tonnes were for export and the remaining were for
domestic consumption, Vinacomin Deputy General Director Nguyen Van Bien told
the media in
The
January-June figure was equivalent to 49.2% of the yearly target and 95.8% of
the same period of last year, with domestic sales rising 17% rise annually to
17 million tonnes, representing vastly different volumes for domestic
consumption and export.
Bien
said the declining exports are a result of global oversupply, adding that
Vinacomin will strive to keep the 2015 total production equivalent to that
recorded in 2014.
In July,
Vinacomin expects to sell 3.2 million tonnes of coal, including 3.1 million
tonnes in the domestic market.
Qualified
SOEs allowed to skip UPCOM
Equitised
state-owned enterprises (SOEs) would be able to be listed directly on the
stock market and skip the Unlisted Public Company Market (UPCOM) if they were
qualified, an official told Securities Investment magazine.
Nguyen
Quyet Tien, Deputy Head of the Corporate Finance Agency under the Ministry of
Finance, was responding to concerns from many SOEs and their investors that
were unsure if they would have to go through UPCOM before they listed on the
stock market.
The
issue arose after SOEs were required to list on UPCOM prior to the national
stock exchanges after they were equitised, according to the Decision
51/2014/QD-TTg issued by the Prime Minister last September.
Tien
said that SOEs should regard UPCOM as a benchmark, not a compulsory
requirement.
SOEs
could skip UPCOM and be listed directly on the stock exchanges if they were
financially qualified after being equitised, he said.
If they
were not financially strong enough, they would need to enter UPCOM first and
try to meet the financial criteria set by the SSC in order to be listed on
the stock exchanges, he said.
Tien
also said that the financial criteria were stated in Decree 58/2012/ND-CP
which was issued in July 2012.
Under
the Decree, companies need to have 120 billion VND (5.5 million USD) in
charter capital and been operating and profitable for at least two years as a
joint stock company.
Those
that are qualified to be listed on HOSE, are also eligible to be listed on
the Hanoi Stock Exchange.
Tien
said the decision aimed to impose sanctions on companies that did not prepare
to be listed after being equitised.
He said
that the decision would ensure the rights and benefits of shareholders were
protected, and that companies operated transparently after they were
equitised.
Experts
urge speeding up economic restructuring
Economic
experts have warned that
Luu Bich
Ho, former Director of the Development Strategy Institute at the Ministry of
Planning and Investment, said while the business environment has improved,
particularly with the Government’s programme to reform administrative
procedures towards catching up with the business environment of the top four
ASEAN economies in 2016, the country is just making the first steps of
restructuring, with no obvious change in the growth model.
Nguyen
Tu Anh, Deputy Head of the macro-economic policy section under the Central
Institute for Economic Management (CIEM), highlighted the nation’s
significant achievements in curbing inflation, stabilising its macro-economy,
increasing the national safety index and improving business environment and
labour productivity.
He noted
that inflation peaked at 28.32 percent in August 2008 and has gradually
returned to normal from July 2012 to the present, while loan interest rates
were curbed after measures to restructure the banking system took effect in
early 2012.
However,
he warned that the risk of macro-economic instability still exists due to
slow equitisation of State-run businesses and the handling of bad debts.
Public investment restructuring has yet to focus on measures to improve the
efficiency of investment and avoid investment waste, he added.
Director
of the CIEM Nguyen Dinh Cung said restructuring the economy is to change
institutions and mechanisms for the allocation, management and utilisation of
national resources, particularly investment capital, towards a more effective
and highly competitive economic structure. He added that the re-allocation of
national resources should not be done by the State but be prompted by the
market.
Le Xuan
Ba, former Director of the the CIEM, said restructuring the economy
successfully requires a high price, which means to accept a modest growth of
4-5 percent in the short term in order to have higher growth of 8-10 percent
in the middle term.
To boost
economic restructuring and shift growth models, experts suggested maintaining
macro-economic stability with low inflation while establishing and developing
institutions for the market economy and creating fair and transparent playing
grounds for businesses with low risk levels, high-quality human resources and
synchronous infrastructure systems.
Thanh
Hoa works to attract investment
The
central
According
to Nguyen Dinh Xung, Chairman of the provincial People’s Committee, Thanh Hoa
has been implementing a number of measures to tap its potential and boost
economic growth and competitiveness.
The
locality is paying attention to equitising State-owned enterprises, divesting
from non-core businesses and fostering new-style agricultural cooperative
models to strengthen connections and form production value chains.
Meanwhile,
private and foreign businesses are receiving favourable conditions to develop
their production and trade activities.
Thanh
Hoa is also paying heed to developing small- and medium-sized enterprises,
promoting the application of advanced science and technologies in production
and training human resources to serve the locality’s industrialisation and
modernisation goals.
It will
also strengthen state management of mineral and environmental protection and
streamline administrative procedures to make it easier for investors to
rapidly carry out projects and effectively operate in the locality.
Covering
over 11,000 square kilometres, Thanh Hoa has advantages in transport,
infrastructure facilities, geographic position and natural resources.
It
boasts five industrial parks and the Nghi Son economic zone (EZ) – one of the
five key economic areas of the country which focuses on heavy industry, basic
industry and the Nghi Son seaport.
Spanning
18,000 hectares, Nghi Son EZ is now home to 134 projects, including 124
domestic projects. The majority of projects are operating effectively,
contributing to local economic development and creating jobs for thousands of
local residents.
The zone
also houses the Nghi Son Oil Refinery and Petrochemical Complex (NSRP), the
largest of its kind in Southeast Asia and the biggest foreign direct
investment (FDI) project in
Thanh
Hoa is concentrating on building the Lam Son-Sao Vang Hi-tech Industrial Park
with a total area of 6,000 hectares, which is expected to become the
province’s major economic area in the future.
The
locality has recently ranked among the top ten in the provincial
international economic integration index, the provincial competitiveness
index, and the Vietnam Provincial Governance and Public Administration
Performance Index, evidence of its promising progress towards favourable
investment conditions.
In 2014
alone, the province granted licences for 152 new projects, including 10 FDI
projects, with a combined registered capital of 27 trillion VND (1.27 million
USD), 2.5 times that of the previous year. Seven FDI projects also increased
their capital by 107.6 million USD.
Northern
Power Corporation reports good growth
The
Northern Power Corporation under the Electricity of Vietnam (EVN) group
achieved an average annual electricity output rise of 16 percent in the last
five years, the highest rate among EVN power distribution companies.
Its
yearly revenue grew by more than 8.5 trillion VND (391.7 million USD) with an
average annual net profit reaching over 300 billion VND (13.8 million USD).
In the
period, electricity prices increased around 123.4 VND per kWh each year,
while the loss rate during transmission and distribution reduced from 8.96
percent in 2010 to 7.4 percent in 2014.
The
Corporation also launched a number of major projects including the Phu Binh
Transformer Station and electricity supply projects for Samsung
Contributing
to advancing local living standards, the EVN chapter has thus far made
electricity available for 4.5 million households living in rural areas.
Vietnamese
bananas enter Japanese market
This is
the first batch shipped under a contract between the U&I Agriculture
Corporation (Unifarm) and its Japanese partner.
The bananas
were grown at the An Thai hi-tech agricultural park across more than 411
hectares of land in southern Binh Duong province.
The park
is expected to become a modern, productive and high-quality agricultural
community applying advanced technologies transferred to farmers under
contracts with Unifarm. The company intends to replicate the model across
Fruit,
vegetable exports grow in first five months
The
country's fruit and vegetable exports reached US$629 million in the first
five months of this year, soaring 17.8 per cent in turnover compared to the
same period last year.
The
country exported nearly 900,000 tonnes of fruit in the past five months, with
dragon fruit taking the lead with 350,000 tonnes, followed by watermelons
(250,000 tonnes), longans (110,000 tonnes) and bananas (30,000 tonnes).
Vietnamese
fruit and vegetables are exported to over 40 countries and territories.
The ten
leading markets are mainland
The
country's exports have enjoyed strong growth in the past five years, with an
average rate of 26.5 per cent a year, from $439 million in 2009 to $1.49
billion in 2014.
However,
fruit exports to high-value markets such as
Exports
to
Dinh Van
Huong, chairman of the Viet Nam Fruit and Vegetables Association, told Thoi
bao kinh te
It would
be difficult for fruit that do not have registered trademarks, brand names
and geographic indications to access markets and shopping centres in foreign
countries, he explained.
Products
are consumed mainly by overseas Vietnamese or bought by foreign partners who
import and pack them using advanced technology, Huong said.
There
are over 100 fruit and vegetable processing companies operating on an
industrial scale nationwide, and their production capacity is up to 300,000
tonnes per year.
However,
a small number of them have licences to export to foreign countries.
Enterprises mainly buy fruit from farmers and sell to foreign dealers, and
have no strategy to access foreign markets.
Nguyen
Xuan Hong, head of the Ministry of Agriculture and Rural Development (MARD)'s
Plant Protection Department, said the country lacked experience in opening
export markets.
To boost
fruit and vegetable exports,
Ha
Noi to sell water company
The Ha
Noi People's Committee has decided to equitise Ha Noi Clean Water Ltd Co No2,
according to Dau Tu (Investment) online newspaper.
The
firm, an affiliate of Ha Noi Clean Water Ltd Co, has a charter capital of
VND568 billion (US$26 million).
An
estimated 56.8 million shares at an initial price of VND10,000 each are
scheduled to be issued during the first initial public offering (IPO).
The
State will hold 96.64 per cent of stakes, while 1.86 per cent of stakes will
be sold to the company's employees, and 1.5 per cent of stakes will be sold
on the market.
According
to the People's Committee's report, Ha Noi will approve business value and
equitisation plans for 17 businesses by the end of this month.
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 Viet Nam.
The
research group forecast that the foreign exchange rate might reach VND21,850
against the dollar by the end of the second quarter, VND40 away down from the
ceiling rate, reported vneconomy.vn, adding that no huge fluctuations were
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 Viet Nam
started to sell the dollars and issue treasury bills to ease tensions in the
forex market after the dollar rates showed a huge increase last month.
On May
7, the central bank raised inter-bank rate by 1 per cent for the second time
this year to VND21,673 per dollar, leaving no room for any adjustment this
year as it had earlier committed not to weaken the dong by more than 2 per
cent 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.
Yesterday,
the dollar buying rate of Vietcombank was VND21,780 and the selling rate was
VND21,840.
The
research group predicted that the exchange rates would fluctuate around
VND21,800 and VND21,820 this month and around VND21,700 and VND21,890 in the
third quarter of this year.
According
to a market report by BIDV Securities, 1 per cent adjustment of VND/US$ 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 Viet Nam.
Although
Viet Nam ran a trade surplus in the first few months of this year, the
central bank forecast that overall balance of payments would post a surplus
for the full year.
Draft
circular proposes shift to intra-day trade
The
State Securities Commission on Thursday introduced a draft circular to
replace an older one on the guidelines of securities trading to collect
opinions from market participants.
One of
the most important proposals in the draft circular is that investors would be
allowed to buy and sell shares in a single company on the same trading day,
applicable to the continuous order matching session and shares in the VN30
and HNX30 baskets.
VN30 and
HNX30 track the top 30 shares by market value and liquidity on the HCM Stock
Exchange and Ha Noi Stock Exchange.
The
current Circular 74/2011/TT-BTC, dated June 1, 2011, stipulates investors
must use one account for buy/sell orders on a single share listing, but these
orders must not be made simultaneously in a matching session.
The
draft circular would remove the one-account regulation but would require
these trades to be made in the continuous matching session. These trades are
also not applicable to odd-lot sales and negotiated transactions.
Eligible
shares for intra-day trading include stocks in the VN30 and HNX30 baskets and
fund certificates on the stock exchanges.
Under
the draft regulation, the number of securities placed for sale must not be
higher than that of securities bought, including shares available in the
investor's account, shares pending arrival in the account and shares
purchased on the same day.
The
total value of buys or sells on the trading day for each investor must not
surpass the amount specified by the securities company.
In
addition, the draft circular also stipulates strict conditions for securities
brokers who are permitted to provide intra-day trading services.
Following
implementation of the circular, the securities company must have equity
capital or charter capital of VND800 billion (US$36.7 million); full
appropriate reserves to hedge share declines; and a working capital ratio of
at least 220 per cent in the last 12 months and must not have incurred losses
in the previous two years.
These
companies must also not have undergone any process related to mergers,
consolidation or dissolution or have been placed under control, special
control status or suspension by a competent authority.
Apart
from the regulations related to intra-day trading, the draft circular also
forbids issuers from disclosing information on transactions related to their
share buy-backs or share sales where the shares do not perform within the
registered period or have been traded at prices beyond the permitted trading
bands.
At the
same time, the new regulation prohibits issuers from revealing the expected
buying/selling prices when making these trades.
On the
same day, the State Securities Commission also posted a new draft regulation
that will shorten the payment period from three days (T+3) to two days (T+2)
for public opinion collection.
Study
to be held on railway management control centre
Cisco
and the Management Authority for Urban Railways (MAUR) signed an agreement on
Thursday to conduct a feasibility study for an Integrated Telecommunications
Control Centre for HCM City Urban Railways.
The
study, with funding of US$1.5 million, is being undertaken through a grant
from the US Trade and Development Agency.
The
study will focus on communications technologies for the control centre for
HCM City's metro rail system.
The
project starts in June and is expected to be completed in November, and aims
to establish a strategic ICT plan, which MAUR will use to build a
telecommunications control system.
The
plan's aim is to improve operational efficiency and management, and provide
seamless operation and connectivity with other public transportation systems
such as buses, taxis and waterway transport.
Cisco
will provide consultancy services, ICT recommendations and technical
standards, and will submit an implementation proposal to help realise MAUR's
vision for Ho Chi Minh Urban Railways.
Cyber
criminals change tactics to lure unsuspecting companies
Cyber
criminals have changed their tactics to deceive companies and digitally
extort consumers, according to Symantec's Internet Security Threat Report
(ISTR), Volume 20.
"We
are seeing a dramatic shift in the mode of attacks. Attackers have tricked
companies into infecting themselves through Trojanised software updates,
hiding their malware inside software updates of programmes used by target
organisations. This enables cyber criminals to gain full access to corporate
networks without the need to even make any forced entry," said Ong Jonghan,
Country Director for Vietnam Symantec.
"Viet
Nam climbed up the global threat rankings from 11 in 2013 to 9 last year
among countries globally on internet security threat activities. This is a
clear indication that cyber criminals have not slowed down but are constantly
innovating and enhancing their modes of attacks. With the growing population
of internet users, there is a critical need to increase more awareness around
cybersecurity among businesses and consumers in Viet Nam," Ong added.
Tuna
value likely to drop in Q2
Viet Nam
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 Viet Nam
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 per cent to US$123 million in the second quarter.
The
decline can be partly because of a drop in tuna price on the world market to
under $1,000 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 Viet Nam's major export markets, Viet
Nam Trade Promotion Agency reported.
In the
first four months of this year, Japan, one of the top three tuna export
markets of Viet Nam, 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 per cent compared with the same period of last year.
However,
the tuna exports from Viet Nam to the US recorded a year-on-year increase of
3 per cent to $58 million 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 per cent of Viet Nam's total tuna export volume,
the Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) newspaper reported.
The
VASEP also believes that Russia will emerge as one of Viet Nam's potential
tuna export markets in future, as the free trade agreement signed between
Viet Nam 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 per cent to $1.65 million in the
first four months of this year.
Meanwhile,
the World Trade Centre's statistics show that Viet Nam was the third largest
tuna exporter to Russia in the first quarter of this year, after Thailand and
China.
Viet
Nam aims to boost consumption of biofuel
Deputy
Prime Minister Hoang Trung Hai ordered preparations to be made to boost the
distribution and consumption of biofuel E5 RON 92 nationwide.
The minister
was speaking at a meeting on Tuesday to review the results achieved in the
first half of this year.
Statistics
revealed at the meeting showed that the consumption of biofuel E5 remained
modest and far below expectations. It is estimated to account for some 3 per
cent of petrol retail sales.
According
to the Ministry of Industry and Trade's report, biofuel E5 was put on sale in
eight provinces and cities across the country: Quang Ngai, Da Nang, Ha Noi,
HCM City, Hai Phong, Ba Ria-Vung Tau, Can Tho and Quang Nam. More than 87,087
tonnes were sold in the first four months of this year.
Deputy
Director of Ha Noi Department of Industry and Trade Tran Thi Lan Phuong
pointed out that consumers were still hesitant to use biofuel E5 due to the
lack of knowledge about its features and benefits.
Meanwhile,
low consumption discouraged petrol traders from investing in the distribution
of biofuel E5 as the investment and transportation costs could be high.
At the
meeting, Hai asked biofuel E5 wholesalers to strictly follow the roadmap for
biofuel E5 distribution raised in Decision No 53/2012/QD-TTg.
Hai said
raising awareness among consumers about biofuel E5 was also an important job
along with raising the appropriate technical standards for biofuel.
Local
authorities should closely co-operate with petrol wholesalers in producing
and distributing biofuel E5 to prevent a shortage in the retail market.
Central
Quang Ngai Province sold biofuel E5 from July last year, becoming the first
province in the country to sell biofuel E5, with most of its retail petrol
stations participating in selling the fuel.
Some 70
per cent of stations in Da Nang now sell biofuel E5, while percentages in Ba
Ria-Vung Tau, Ha Noi, Can Tho and Hai Phong were 24, 20.4, 16.4 and 7,
respectively.
Other
provinces and cities were gearing up to push E5 RON 92 into the market, and
the biofuel was expected to be widely used throughout the country from this
December.
Limit
eased for farm loans
A new
decree has raised the limits for agricultural and rural development loans,
excluding mortgages.
Decree
No55/2015/ND-CP, issued this week and going into effect on July 25, states
that banks can lend up to VND3 billion (US$142,850) to a union of
co-operatives dealing in aquaculture or offshore seafood exploitation.
A
household involved in a seafood cottage industry can borrow up to VND2
billion ($95,240), while a household or an individual growing industrial
crops or perennial fruit trees can seek loans amounting to VND200 million
($9,520).
A
household or individual involved in agricultural production and related
business activities can secure loans worth VND50 million to VND100 million
($2,380 to $4,760).
An old
decree, which has been valid since 2010, stipulated banks' lending caps of
VND500 million ($23,800) for agricultural co-operatives and farm owners and
VND200 million for households dealing in farming services.
It also
fixed a maximum lending amount of VND50 million for individuals or households
associated with agriculture, forestry, pisciculture and salt production.
VnExpress
online said the changes were based on the State Bank of Viet Nam's (SBV's)
suggestions, which were aimed at easing rural credit, and the fact that costs
in some of these cottage industries had prompted significant demand for
capital.
Reports
before the National Assembly stated yesterday that agricultural and rural
credit amounted to some VND798 trillion ($38 billion) nationwide at the end
of May, an increase of 7.2 per cent over last year-end. The loans for this
prioritised sector represented 19.3 per cent of all loans in the country.
According
to the SBV, the overall credit growth of the domestic banking system this
year reached 4.8 per cent as of May 28, significantly higher than the 1.3 per
cent recorded during the same period last year.
HCM
City to host support industry expos
Three
exhibitions related to the support industry, Metalex Vietnam, Vietnam
Electronics Assembly and the Business Alliance for Support Industry in HCM
City, will be held at a single venue in HCM City in October, the organisers
announced yesterday in HCM City.
Organised
by the Japan External Trade Organisation (JETRO) in HCM City and the HCM City
Investment and Trade Promotion Centre, "The Business Alliance for
Support Industry in HCM City" will enable local parts manufacturers to
contact Japanese buyers of parts and components.
Two
other exhibitions, Metalex Vietnam, an international exhibition on machine
tools and metalworking solution for production upgrade, and Vietnam
Electronics Assembly, an international machinery expo for electronic parts
and components manufacturing, will be hosted by Thailand's Reed Tradex Co.
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 Viet Nam's support
industries, said Duangdej Yuaikwarmdee, deputy managing director and general
manager of Reed Tradex Co, Ltd in Viet Nam.
Electronic
component markers to move to Vietnam in 2-3 years: event organizer
Foreign
electronic part manufacturers will head for Vietnam in the next two to three
years as a result of a switch made by giant firms from many countries around
the globe, an expert said this week on the sidelines of a press conference to
introduce coming support industry exhibitions.
Big
names like Samsung, LG, Microsoft, and Intel have already picked Vietnam as
their production bases for the near future, and relocated their technologies
and equipment elsewhere, such as China, Malaysia, Thailand, and Costa Rica,
to the Southeast Asian country, according to Duangdej Yuaikwarmdee, deputy
managing director of Thailand-based Reed Tradex that specializes in
organizing industrial exhibitions and conventions.
The
remark was delivered at the press conference in Ho Chi Minh City on Thursday
to introduce three international exhibitions on support industries that will
be organized in the city this October.
It will
need around two to three years for other international electronic component
manufacturers to follow the footstep of the big brands and set up their
production facilities in Vietnam to supply parts to electronics makers, said
Yuaikwarmdee, who is also the general manager of Reed Tradex in the country.
The move
will include the establishment of new facilities or the relocation of bases
from other regional countries to the Southeast Asian nation, he added.
Many
electronics manufacturers may come to Vietnam due to the advantage of low
labor costs, but they will only stay if they see that they can buy almost all
of what they need locally, he said.
Among
the three major regional countries – Vietnam, Thailand, and Malaysia – where
many international electronics manufacturers have established their
production bases in recent years, Vietnam has relatively cheaper labor costs,
the Reed Tradex executive commented.
Another
advantage of Vietnam is its position, as the country neighbors China, which
is currently the world’s biggest electronic part maker.
LG
Electronics Inc., the world's second largest television maker, in March said
it would shift its TV production in Thailand to Vietnam this year for
efficiency, logistics, and costs, as it would take much shorter time for the
firm to import parts from China into Vietnam, instead of into Thailand, for
assembling.
Vietnam
is now the mobile phone powerhouse of Southeast Asia, Yuaikwarmdee said.
Also at
the event, a Japan Foreign Trade Promotion Organization (JETRO)
representative said support industries in Vietnam have been lately improved,
as reflected by the significantly increased ratio of domestic supply for
Japanese firms.
Hirotaka
Yasuzumi, managing director of the JETRO office in Ho Chi Minh City, said
that the latest survey by his organization showed the domestic supply rate in
Vietnam has improved, rising from 22 percent four years ago to 32 percent in
2014.
However,
the improvement is mainly based on foreign businesses investing in Vietnam,
while the contribution of domestic enterprises is still relatively small,
Yasuzumi said.
In the
same period, the rate was still higher in Vietnam though other Southeast
Asian countries posted insignificant growth or even a slight decline in
comparison with that of the previous years, he said.
Second
Online Friday to take place in December
The second
online shopping day--Online Friday--will be held on December 5 by the
Ministry of Industry and Trade and the Vietnam E-Commerce Association.
It is
expected to receive 2,500 businesses and reach one million transactions with
a total goods and service value of US$25 million.
This
year, the program will focus on three main attendee groups including product
and service sellers, banks and transport firms.
The
first Online Friday took place last year bringing VND154 billion (US$7.07
million) with a total of 160,055 orders.
VAMC
wants more power to deal with bad debts
Heads of
Vietnam Asset Management Company (VAMC) said they need more power instead of
more money to deal with bank bad debt, because the legal framework is
inadequate.
"Even
if we are given more fund, we would not be able to completely deal with all
the bad debts," said Nguyen Quoc Hung, chairman of the VAMC.
Hung
said there are legal obstacles were preventing the VMAC from doing its job;
even after buying bad debt, there was nowhere to dispose of it because
Vietnam does not have the proper markets.
"There
are 50 to 60 foreign investors interested in (buying the bad debt), but when
they ask how, we we can't give them answers," he said.
Hung
said the VAMC needs more power, including to seize collateral assets,
enforcement, selling assets, and to go after borrowers who do not repay their
loans.
Bad
debts at credit facilities amounted to VND309trn as of December, 2014. The
VAMC has so far bought more than VND133trn of bad debt, but has resold just
VND2trn.
Pham
Ngoc Long, head of the Science Institute for Small and Medium Enterprises,
said 80 percent of bad debt was held by state enterprises which failed in
non-core investments. Long said the bad debt classification method was
inadequate and regulations incomplete, leading to conflicting and impractical
rules.
The
State Bank of Vietnam established the VAMC in 2013 to purchase bad debt from
financial institutions, provide debt restructuring and guarantee continued
operations of enterprises, organisations and individuals through guaranteed
loans.
13
additional investment projects come to Tra Vinh
The
Mekong Delta province of Tra Vinh has attracted 13 domestic and foreign
projects to Long Duc Industrial Park and other economic zones with registered
investment of 25.6 trillion VND (over 1.17 billion USD) so far this year.
According
to the Centre for Investment Promotion and Business Support under the
provincial Department of Investment and Planning, a highlight is a 120
million USD wind-power plant project by the Republic of Korea (RoK). Other
projects will produce clothing, footwear, seafood, agricultural products and
automotive electronics for export.
The
locality has adopted various investment incentives to improve the local
business environment, such as a 30-100 percent reduction in business
registration fees, reductions on land rent rates and fees paid for the use of
infrastructure, and 2-7 years of corporate income tax exemptions plus a 50
percent reduction of income tax in the next 6-7 years.
Firms
with over 500 permanent employees will be financially supported in staff
training.
Thanks
to its efforts, the province has been home to about 150 investment projects,
including 30 foreign ones with a total investment of 303 million USD.
Quang
Binh allocates 1.8 mln USD to boost industry
The
central province of Quang Binh issued Decision No.1490/QD-UBND on June 10
regarding a programme to stimulate the local industry by 2020 with estimated
spending of 40 billion VND (1.83 million USD).
The sum
includes 30 billion VND (1.4 million USD) from the provincial budget and the
remaining will come from the national industry boosting programme.
The
provincial programme focuses on offering vocational training to more than
3,000 local workers and improving vocational and management capability for
another 500 workers, alongside building 16 technology demonstration models
which introduce advanced technology and new products.
Additionally,
it provides financial support for industrial businesses and helps them attend
domestic and overseas trade fairs to promote their products.
The
locality is also drawing up detailed plans to develop local industrial
clusters and economic zones and invest in infrastructure development.
A
highlight of the programme is support provided to about 130 industrial
businesses in rural areas to expand their business and transfer advanced
technology to improve production.
The
spending is part of provincial efforts to boost industry and handicrafts
sectors towards sustainable development in a bid to enhance competitiveness
and contribute to economic restructuring.
Businesses
await opportunities to resume operations
The
number of businesses halting operations declined 5.3 percent to 22,700 in the
first five months of this year, with many waiting for opportunities to return
the market, said Deputy Minister of Planning and Investment Dang Huy Dong.
Poorly-performing
and less-competitive enterprises are likely to cease operations, dissolve or
go bankrupt. This, to some extent, will help constantly restructure the
economy, purify the business environment and create a basic foundation to
increase national competitiveness and sustainable development, he said.
From
January-May, the country had about 36,000 start-up businesses with total
registered capital of nearly 220 trillion VND (10.1 billion USD), up 15.5
percent in volume and 26.3 percent in capital over the same period last year.
Close to 7,404 enterprises resumed operations in the first five months of
this year, a year-on-year increase of 5.9 percent.
Compared
to countries in the region and the world, the number of Vietnamese firms
withdrawing from the market is within normal range and not concerning, Dong
said, adding that looking at the flow of businesses joining and withdrawing
from the market will offer a more comprehensive evaluation of the business
panorama.
According
to 2011 statistics from the European Council, the number of businesses
leaving the market exceeded that of start-up businesses and the ratio of
active firms after five years was 46 percent. Meanwhile, in Vietnam, about
550,000 or 66 percent of the 830,000 start-up businesses remain active.
The
Deputy Minister said the market economy only nurtures healthy and creative
initiatives, which is an objective rule.
Business
registration and tax agencies have been working together to exchange
information and closely monitor business activities and the State management
agencies will continue to facilitate business expansion, he added.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 17 tháng 6, 2015
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét