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BUSINESS IN BRIEF 18/6
Vietnam
AutoExpo 2015 opens in Hanoi
A number
of green vehicles are being showcased at the 12th International Exhibition on
Automobile and Supporting Industry (Vietnam AutoExpo 2015) held at the Giang
Vo Exhibition Centre in
On the
display at the 10,000 square-metre exhibition site are different types of
vehicles as well as their spare parts and maintenance services.
The
exhibition also features famous automobile brands from
Speaking
at the event, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said the
exhibition will provide support for enterprises, create trade opportunities,
attract investment and promote the exchange of science and technology.
She
highlighted that stable economic growth, improvement in transportation
infrastructure conditions and rising demand for vehicles will facilitate the
development of automobile and motorcycle markets.
During
the exhibition, the organising board and exhibitors will conduct a number of
promotional programmes with gifts.
The
exhibition will run until June 20.
Cisco
supports
Cisco, a
worldwide leader in IT, and the Management Authority for Urban Railways of Ho
Chi Minh City entered into an agreement to conduct a feasibility study
relating to the Integrated Telecommunications Control Centre for the
This
feasibility study, with US$1.5 million funding, is being undertaken through a
grant by the US Trade and Development Agency to support MAUR’s plan to
acquire and implement information and communications technologies for the
The
project starts in June 2015 and is expected to be completed around November
2015.
The
project aims to establish a strategic ICT plan, based on which MAUR will
build an integrated telecommunications control system for its urban railway
systems.
This is
to improve operational efficiency and management, and to provide seamless
operation and connectivity with other public transportation systems such as
bus, taxi, and waterway transport.
Additionally,
Cisco will provide consulting services, ICT architecture recommendations,
technical standards and guidelines, and submit an implementation proposal to
help realise MAUR’s vision for Ho Chi Minh urban railways.
“The
project is an important part of the strategic development of our urban
railway systems starting with the readiness of the Metro 1 Ben Thanh – Suoi
Tien line which is scheduled to operate in 2020. Cisco’s world-leading ICT
expertise is expected to provide an optimised and feasible solution to
connect our urban railway systems,” said Bui Xuan Cuong, director of MAUR.
“Cisco
strongly believes that the implementation and completion of this integrated
ICT project will be the first step for the successful collaboration between
Cisco and MAUR in the future to improve the city’s ICT infrastructure. This
will also significantly contribute to the transformation of
Revitalizing
the Loc Ninh peppercorn brand
The
During
the five-year period businesses in the industry have begun to nurture a
greater appreciation for the stringent quality requirements for food product
exports into major markets and as a result the image of the industry has
improved somewhat.
At a
recent seminar discussing the revitalization of the Loc Ninh peppercorn
brand, participants suggested a concerted effort be made to invest in and
develop the brand over the next three to five years.
Tran Duc
Tung, head of office of the Vietnam Pepper Association (VPA) said at present,
This
vast market share demonstrates that Vietnamese growers and producers can
compete head on with their counterparts in the more demanding markets Tung
said— and with additional research and development could be even more highly
successful.
At
present, there are roughly 200 registered domestic and foreign export
businesses throughout the nation. Several major foreign traders have only
recently increased their presence in the
Nguyen
Thi Mai Oanh, vice president of the Vietnam Pepper Association (VPA) said the
export price is much lower than other nations due to lack of compliance with
good agricultural practices (GAP) standards.
To
develop the Loc Ninh brand in both domestic and foreign markets, there should
be greater effort from farmers and traders to adhere to GAP standards to
control pests and diseases that negatively affect plant production.
If
Vuong
Ngoc Bich, director of An Huy BT Co, Ltd also emphasized the importance of
reducing the use of fertilizers, pesticides and herbicides in the cultivation
process, noting, the world’s leading foreign peppercorn buyers are willing to
pay premium prices higher than US$300 per tonne if no excessive pesticide
residues are detected.
However
the overuse of fertilizers, pesticides and herbicides by farmers has caused
the peppercorn trees to degenerate and as a result they have become more
susceptible to disease, which is negatively affecting sustainability of the
industry, Bich said.
Mr Tung
said in the first five months of the year,
The
Southeast Asian nation has roughly 80,000ha under cultivation, 52,000ha of
which can now produce harvests, with an average output of 2.4 tonnes per
ha. Binh Phuoc province takes the lead in building the Loc Ninh brand.
On March
25, 2014 the National Office of Intellectual Property of Vietnam (NOIP)
granted certificates to 16 households that grow trees in Loc Ninh with a
total cultivation area of more than 25 hectares.
Vo Dang
Khoa, Director of the Centre for Investment, Trade and Tourism Promotion of
Binh Phuoc province said the development of Loc Ninh brand should give fresh
impetus to the cultivation of peppercorn trees in the province in the coming
time.
Support
industries need help
More
Government support for local companies involved in the support industries was
needed, according to the managing director of the Japan External Trade
Organistion (JETRO)'s
Hirotaka
Yasusumi said the investment by Japanese companies in
According
to a JETRO survey, the percentage of local procurement in
But it
was still low compared to 66 % in
Although
the supply of industrial materials and sub-components by Vietnamese firms to
Japanese businesses had gone up by 2.5 % in the 2013-14 period, it still
accounted for less than 45 % of total local procurement in
Yasusumi
said Japanese firms investing in
But
since most Vietnamese companies involved in the support industries are small-
and medium-sized, many of them lack funds to invest in modern technology, as
well as human resource training or necessary technologies.
Duangdej
Yuaikwarmdee, deputy managing director and general manager of Reed Tradex Co,
Ltd in
"It
is vital for industry to understand factors affecting supporting industries,
which play a major role in industrial development," he said.
Most of
the global electronic brands have assembly plants in
"Compared
to other ASEAN countries, you have good fundamentals, and the key thing is
how we can develop the electronic support industry," he said.
"I
think that the key concern is how to make local manufacturers adapt to new
technologies to increase production.
Pho Nam
Phuong, director of the Investment and Trade Promotion Center of HCM City,
said in the first five months of the year, the city attracted around US$1.05
billion in new investments and additional capital of foreign investors, a
year-on-year increase of 33 %.
"Japanese,
Korean and Taiwanese manufacturers have been moving many of their factories
and technology to
This
offers an opportunity for domestic parts producers to become suppliers of
these corporations, she said.
Time
spent on customs procedures to be slashed
The
General Department of Customs has set a target to reduce time spent on
customs procedures to less than 10 working days for exports and 12 working
days for imports by 2016.
The
department will also seek to simplify procedures for businesses, with a
target to reach the average of ease of doing business ranking of the ASEAN-6
(
Further,
the department has committed to continue effectively implementing the Law on
Customs and speed the application of information technology, including
assuring the smooth operation of the Vietnam Automated Cargo Clearance System
and Customs Intelligence System (VNACCS/VCIS).
These
are some of the targets set by the department to implement Government
Resolution No 19/NQ-CP on improving the business environment and national
competitiveness in 2015 and 2016 by reducing costs, time and risks involved
in doing business in the country.
The
Resolution noted the reduction in time spent paying taxes from 573 to 247
hours per year, expecting that this will be reduced to 167 hours per year
thanks to changes to the Tax Law, which came into effect on January 1, 2015,
even as the time spent on business initiation procedures was reduced from 34
to 17 working days.
The
Resolution, dated March 12, 2015, requested ministries, agencies and
localities to focus on consistent and effective implementation of key tasks
and solutions to realising three strategic breakthroughs, together with
restructuring the economy, changing the growth models, raising productivity,
quality, efficiency and competitiveness. Also they seek the upgrading of
In the
Southeast Asian region,
The
latest Doing Business report by the World Bank, released last October, ranked
At the
mid-term Vietnam Business Forum 2015 held in Ha Noi last week, Minister of
Planning and Investment Bui Quang Vinh said the country's investment climate
has witnessed significant improvements following three challenging years of
macroeconomic instability.
Prime
Minister Nguyen Tan Dung told the forum that the Vietnamese Government would
commit to improving the business and investment climate, as well as raise
entrepreneurs' competitiveness.
Further,
at a Government meeting earlier this month, the PM also expressed the
Government's determination for improving the country's business climate,
saying that it was critical for socio-economic development and has become an
urgent task for
Dung
said ministries must come up with detailed measures aimed at administrative
reform, including tax, customs and power access, and create a breakthrough in
the business climate this year.
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% 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.
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.
Economist
Nguyen Minh Phong said a market mechanism can be implemented if there is free
competition. It meant that all economic sectors, including private,
State-owned, and FDI, will be allowed to compete to sell electricity to
distributors.
However,
the retail price of electricity faces no competition as it is decided by the
Government.
Phong
pointed out it is impossible to have a market-based retail price by 2016 as
the sector has been enjoying a monopoly. The Government's role still accounts
for 97% of the total production and distribution, thus ensuring no
competition.
He
proposed to divide production and distribution to set the price of power
under a market mechanism.
Sharing
the ideas, Pham Quy Tho, a public policy specialist with the Ministry of
Planning and Investment, said
According
to Tho, the country should have a preference power price to help guide
producers to clarify production costs.
Japan’s
electric company to increase production in Vietnam
The
Japan-based Tabuchi Electronic Co. Ltd., a renowned manufacturer of power
components and transformers, will invest 1.5 billion JPY (US$12.1 million) in
building a workshop in its plant in
Under
the company’s plan to increase production in
Among
the products, power components used in printers and photocopiers will be sold
to office machine manufacturers which are looking to move their production
from
Tabuchi
also plans to transfer production technology to its plant in
In the
2014 fiscal year, which ended in March, 80% of the company’s revenue came
from the production of electric equipment used in solar inverters. Increasing
its output in
Cement
industry gets back on track
The
Ministry of Construction has forecast that sales of cement and clinker in
In line
with the forecast, the latest figures released by the Vietnam National Cement
Association (VNCA) show that in the four months leading up to May domestic
sales of cement jumped 3% year-on-year to 15.89 million tonnes.
For the
month of April alone the VNCA statistics indicate that sales of cement shot
up 113% on-year to 5.45 million tonnes, which represents a month-on-month
increase of 28%.
However,
during the four-month period actual production was estimated at 30.22 million
tonnes— far outpacing sales resulting in higher inventory stockpiles, the
VNCA reports show.
The VNCA
reported the overproduction resulted from an unanticipated slowdown in
domestic construction during and following the TET Lunar New Year holiday,
which they say is inconsequential.
Le Van Toi,
head of the Ministry of Construction’s Building Material Department agrees
with the VNCA and is not deterred on the prospects for the industry
throughout the remainder of the year.
The
nation is experiencing an upturn in residential and commercial construction
that will spill over and produce a vibrant cement market throughout the
remainder of 2015, Toi said.
Meanwhile
statistics from the Ministry of Construction seem to support Toi’s optimism
as they show that for the January-April period, new residential construction
in the two big markets of
In
southern region, FiCO Tay Ninh cement joint stock company (TAFiCO)’s cement
consumption reported its sales were up 1.19% compared to the same period last
year, while in the north, Vinacomin reported its sales rose 10%.
Hoang
Canh Nguyen, General Director of TAFiCO, said the company targets to develop
its trade name, increase the quality of products, boost flexible policy of
selling goods and push services after sale in order to increase its competitiveness.
After
traditional markets, the company aims for enlarging export markets in the
coming time. Now the company is pushing to produce high-quality products to
key markets such as
The
figure is expected to be higher in the future.
TAFiCO
has been preparing to commence construction of two new cement plants, which
will raise the company’s total production capacity to 3 million tonnes of
cement annually.
When
these plants are placed into operation, the company will be better positioned
to meet the demand for high-quality products in both the domestic and
international markets, Nguyen added.
In the
near future, the real estate and building material markets will be busier
with many new projects set to begin construction.
According
to Savills
Car
importers will have to pay for emissions test
The
Ministry of Finance has issued a draft circular that requires the importers
of cars with less than seven seats to pay for fuel consumption tests and
energy certificate labels.
Under
the draft circular, which is currently open for ideas and opinions,
organisations and individuals manufacturing, assembling, and importing
vehicles with less than seven seats, will have to pay a fee of VND16,000,000
(US$734) for a fuel consumption test on a petrol vehicle and VND16,500,000
(US$757) for a diesel-run vehicle.
In
addition to fuel consumption test fees, they should also pay for energy
certificate labels, with VND100,000 (US$4.6) per vehicle.
Viet Nam
Register will supervise the collection and management of fees for emissions
and fuel consumption tests, as well as fees for energy labels.
ICDREC
inks deal to make chips for
The
Integrated Circuits Design Research & Education Center (ICDREC) of the
Vietnam National University HCMC on June 9 clinched a contract to produce
chips for Japan-based firm CM Engineering.
Under
the deal worth US$60,000, ICDREC will design the power supply part for the
chips in one year but the center is expected to finish the contract within
six months.
It took
ICDREC two years to win the contract with CM Engineering, which specializes
in designing integrated circuits (IC) used in wireless sensor devices. This
is also the first contract of the center with a foreign firm,
Ngo
Quang Vinh, ICDREC director, said the center is negotiating with several
foreign chip designers to process the product for the Japanese firm.
Also on
June 9, ICDREC reviewed its training course on designing Analog +1 chips for
15 trainees, raising the total number of people able to design ICs for the
center to 125.
The
course was the first human resource training program of the city’s master
plan on chip industry development for the 2013-2020 period.
The plan
envisages the program would train 2,000 engineers for the IC sector until
2020, including 1,500 engineers designing the chip and the rest in charge of
operating a chip factory.
However,
experts said 2,000 people would not be enough for developing an IC industry.
The
Government has approved construction of the chip factory planned to be put at
the Saigon Hi-Tech Park in the city’s District 9 and invested by Saigon
Industry Corporation with a total investment of VND6.6 trillion (US$302.96
million).
Once in
place, the facility will make high security products such as ID cards, bank cards,
and military equipment management systems.
HCMC
sees exports up strongly since
Exports
of HCMC have surged at least 3.6 times since
The city
saw its outbound sales rising from nearly US$8.9 billion in 2006 to US$32.08
billion last year, up 3.6 times, said a review report on
The
report showed industrial products posted steady export growth in the period
and accounted for 67.5% of the city’s total export turnover, excluding crude
oil.
Local
enterprises have reduced their heavy reliance on Asian markets, especially
Enterprises
have focused more on diversifying markets for their products.
According
to the report, locally-made products have won the confidence of more local
consumers in this economic hub of
To
improve the business environment, the city government will continue to reform
more State-owned enterprises, adjust policies to ensure fair treatment for
enterprises of different economic sectors, and develop the private sector.
Vietnam
second biggest apparel exporter to S.Korea
According
to the Vietnam Textile and Apparel Association (Vitas), Vietnam exported over
US$627.4 million worth of apparel to Korea in the first four months of this
year, up 8.25% against the same period last year and making up 25.15% of that
country’s apparel imports.
Meanwhile,
China’s apparel shipments to Korea in the same period were over US$1 billion,
making up 41.27%. Indonesia and Myanmar were Korea’s third and fourth biggest
apparel exporters, with 6.9% and 5.35% respectively.
However,
most apparel products exported from Vietnam to South Korea are outsourced by
Korean-invested companies.
Vitas
said 17 out of the 18 companies with high apparel exports to Korea are 100%
Korean-invested firms, including E.Land Vietnam, Daeseung Vina, Ivory
Vietnam, Unico Global Vietnam and Geu-Lim Culture and Fashion. The Vietnamese
company in the top 18 exporters is Bac Giang Garment Joint Stock Company.
Under
the Vietnam-South Korea Free Trade Agreement (VKFTA), almost all apparel
products of Vietnam meeting the rule of origin will enjoy a 0% tax when the
pact becomes effective early next year instead of the current rates of 8-13%.
This is a great chance for Vietnamese companies and South Korea firms to
boost sales to that market.
Nguyen
An, general director of Saigon Garment Manufacturing Trading Joint Stock
Company, said earlier that South Korea was a small market in comparison with
Vietnam’s other markets for apparel. Korea mainly imports small volumes of
just 2,000-5,000 products, while local big companies normally opt for large
orders.
Korean
companies often have apparel products outsourced but outsourcing is not
preferred by large-scale garment companies in Vietnam.
HCM
City mulls metro track to Tan Son Nhat airport
The
government of HCMC is looking for financial support to carry out the
pre-feasibility study for a metro section linking Metro Line No. 5 with Tan
Son Nhat International Airport in Tan Binh District.
The
2-kilometer-long section is envisioned going underground from the Cong Hoa
station of Metro Line No. 5 to the biggest international airport in Vietnam
and have two stations, according to the city government’s document sent to
the Ministry of Planning and Investment on Tuesday.
The
document said there has not been any study for building the planned metro
section, which is expected to meet the demand of a large number of passengers
for travelling to and from Tan Son Nhat airport.
The city
government is seeking investors for a number of metro lines and will
prioritize the public-private partnership (PPP) format for these projects.
The city
government proposed the ministry consider and work with the Korea EximBank
(KEXIM) over the technical support for the planned metro section.
At a
meeting in HCMC last week, the Southern Airports Authority asked the city
government to arrange more public transport services for people to and from
the airport.
Currently,
as there are a few bus routes connecting to Tan Son Nhat, many passengers
have to travel by taxi to the airport but there is not much space for many
taxis to park at the airport. This is the reason why many taxis have to park
on the nearby streets, causing traffic congestion on these roads.
HCMC has
plans to develop seven metro lines. The 19.7-kilometer-long Metro Line No. 1
from downtown HCMC to Suoi Tien Park in District 9 is under construction and
costs US$2.4 billion with Japan’s official development assistance loan
accounting for US$2.2 billion.
Work has
started on the management building of Metro Line No. 2 designed to run 11
kilometers from the Ben Thanh station in front of the landmark Ben Thanh
Market to Tham Luong in District 12. This project requires an investment cost
of US$1.37 billion financed by the Asian Development Bank (US$540 million),
German Reconstruction Bank (US$313 million) and European Investment Bank
(US$195 million).
The city
government is seeking some US$2.82 billion for Metro Line No. 3A with 19.8
kilometers from Ben Thanh to Binh Chanh District, US$1.87 billion for Metro
Line No. 3B with 12.1 kilometers from Cong Hoa Intersection in Tan Binh
District to Hiep Binh Phuoc in Thu Duc District and US$3.7 billion for Metro
Line No. 4 with 36.2 kilometers from District 12 to Hiep Phuoc urban area in
Nha Be District.
Metro
Line No. 5 will stretch 23.44 kilometers from Saigon Bridge to Can Giuoc
Bridge. The section of phase one from Bay Hien Intersection to Saigon Bridge
costs 1.5 billion euros funded by the Spanish government, Asian Development
Bank, European Investment Bank and German Reconstruction
Bank.
The
first phase of the two-phase project is scheduled to get off the ground in
2018 and come online in 2023.
The
second phase from Bay Hien Intersection to Can Giuoc is estimated to cost
US$1.8 billion. The city government is finding finance for this section from
South Korea.
Metro
Line No. 6 from Ba Queo in Binh Tan District to Phu Lam Roundabout in
District 6 will have 6.36 kilometers of underground track and cost US$1.33
billion. The city is looking for funding for this project.
Only
VND154 billion disbursed for riot-hit firms in Binh Duong
Nearly
VND154 billion of the VND1-trillion preferential loan package has been
disbursed for the enterprises in Binh Duong Province affected by the worker
protests against China’s illegal placement of a giant oil rig in Vietnam’s
waters in May last year, heard a meeting on Tuesday.
After
ill-intentioned elements incited the riots and damaged many enterprises and
factories, the southern province approved VND1 trillion of preferential loans
to help the affected enterprises resume production. Lending depended on
damage levels but the highest amount is not higher than 50% of total costs or
VND50 billion.
Loans of
the three-year package carry an average interest rate of 7% but the affected
enterprises have to pay half of the rate (3.5%) and the remainder is
subsidized by the province.
The Bank
for Investment and Development of Vietnam (BIDV) was picked to implement the
loan package. Binh Duong Province estimated 37 enterprises were eligible for
the loans when it was launched but the number of enterprises applying for
such loans was small.
According
to BIDV, just 11 enterprises have registered to take out loans from the
package with a total of less than VND200 billion.
Regarding
land and facility rent cuts and exemptions for the riot-hit enterprises, only
ten enterprises have asked for this kind of support and the provincial
Department of Finance has provided over VND9 billion to support them.
Statistics
of the province indicated that the riots hit 453 enterprises with total
damages worth some VND3.63 trillion.
Germany
funds EUR6.9 million to develop Vietnam’s wind power
The
Vietnam General Directorate of Energy and the German Agency for International
Cooperation (GIZ) signed a EUR 6.9 million agreement to develop Vietnam’s
wind power on June 12.
The
project, which will be carried out until 2018, is sourced from the German
government’s non-refundable official development assistance.
It
targets to build a legal framework for developing wind power in Vietnam and
support Vietnamese agencies working in the field, while boosting
technological transfers and co-operation with Vietnamese partners.
Speaking
at the signing ceremony, Deputy Minister of Industry and Trade Hoang Quoc
Vuong said that Vietnam has been actively building programmes on developing
renewable energy and wind power.
He said
he hoped that with Vietnam’s determination and support from the German
government, the country would make further progress in boosting and expanding
the development of wind power.
According
to Annette Frick, First Secretary of the German Embassy in Vietnam, the
signing of the project illustrated the German government’s commitment to
support the development of renewable energy, particularly wind power in
Vietnam.
As
Germany has significant experience in the field of wind power, the project
will help transfer relevant technologies and techniques to Vietnam, she said.
Cotton
imports grow strongly
Enterprises
in Vietnam spent US$712 million importing 447,000 tons of cotton in the first
five months of this year, up 35.2% in volume and 8.9% in value compared to
the same period last year.
The
volume included 105,000 tons of cotton worth US$166 million, growing 39.1% in
volume and 8.9% in value, Vietnam Television (VTV) reports, citing figures of
the Vietnam Textile and Garment Association (Vitas).
Vitas
said cotton imports were higher than shipments of other materials used by
apparel producers in the country in January-May. The import price of cotton
in the period went down by 19.6% year-on-year to US$1,593 a ton.
In the
year to May, Vietnam had imported 326,000 tons of fiber worth US$638 million,
rising 11.2% in volume and 3.5% in value over the first five months of last
year. The import price of fiber was US$1,954 a ton, down 6.8% year-on-year.
Vitas
projected cotton imports would continue to surge in the third quarter of this
year as local apparel companies need more material to turn out products to
meet higher demand of importers. Some 62% of local apparel firms reported
orders in this quarter have grown over 10% against the first quarter of this
year.
Vietnam
posted textile and garment exports of almost US$24.5 billion, increasing
nearly 16% compared to 2013, according to a report by the Vietnam National
Textile and Garment Group (Vinatex). Vietnam’s major export markets were the
United States, Europe, Japan and South Korea.
Apparel
exports in the first five months of this year went up 8.7% year-on-year to
US$8.11 billion, according to the General Department of Customs. Apparel
shipments in May alone were US$1.65 billion, up 0.8% year-on-year.
Vinatex
expects Vietnam to export US$28-28.5 billion worth of textile and garment
products for this year.
Vietnam
major recipient of French aid
Vietnam
is a major beneficiary of grants given by France with a record disbursement
last year, executive director of the French Development Agency (AFD) in
Vietnam Rémi Genevey told a press conference on June 11.
Genevey
said a record amount of 111 million euros was disbursed for projects funded
by AFD in 2014. Last year, AFD also pledged 89.3 million euros for Vietnam.
Of the
funding, 69 million euros went to the urban railway No. 3 project in Hanoi
and will be used to develop a rail line of 12.5 kilometers western Hanoi to
the central station. The railway is scheduled to come online next year.
Besides,
20 million euros was pledged for a support program to respond to climate
change (SP-RCC 5) aimed to include climate change adaptation to development
policies of Vietnam.
For the
first time the European Union assigned AFD to manage non-refundable aid worth
six million euros for HCMC Finance and Investment Company (HFIC) along with
the funding offered by KfW and AFD, according to Genevey.
Nguyen
Thuy Anh, head of agriculture and rural development at AFD in Vietnam, said
the agency would provide a 22 million euro loan and an 800,000 euro grant for
rural and urban infrastructure development in Lao Cai Province this year.
Present
in Vietnam since 1994, AFD has pledged more than 1.6 billion euros for 79
projects. Starting with its aid for rural development, AFD’s support for
Vietnam has expanded to infrastructure development in the sectors of energy,
transport, clean water and drainage.
Construction
inspectors look into City Gate Tower
Inspectors
of the HCMC Department of Construction on June 10 checked the impact of City
Gate Tower project on Vo Van Kiet Street after the Saigon River Tunnel
Management Center proposed suspending the housing project in District 8.
The
center said that construction of the City Gate Tower project invested by
Investment Joint Stock Company 577 has damaged a section of Vo Van Kiet
Street near the project in Ward 16.
The
center reported that there are cracks on the road section and drainage system
near the construction site and that the pedestrian bridge in front of the
project has subsided.
Earlier,
the Saigon River Tunnel Management Center called for inspectors of the HCMC
Department of Transport to look into the project. The investor was then told
to suspend construction and take measures to repair damage but work was still
going on at the project Wednesday.
An
inspector of the HCMC Department of Construction told the Daily that the
agency will ask the authority of Ward 6 to tell the investor to stop
construction of the City Gate Tower project and repair the damaged section.
The City
Gate Tower project covers 1.93 hectares and has four 28-storey apartment
blocks with a total of 1,092 units. Around 250 units were put up for sale at
some VND1.05 billion each at the end of last year.
The
project has an investment of VND936.6 billion (US$43 million) and is scheduled
for completion in May, 2017.
Rice
price falls after Vietnam wins Philippine contract
The rice
price in many parts of the Mekong Delta region has dipped since Vietnam
recently won a contract to supply 150,000 tons of rice to the Philippines.
Some rice
suppliers of unprocessed rice for export enterprises in Can Tho City and Dong
Thap Province said the current buying price for IR 50404 rice is
VND6,050-6,150 per kilogram, down around VND50 against the level recorded
shortly after Vietnam’s winning the rice contract at a tender in the
Philippines on June 5, and down VND100-150 against around 10 days ago.
Nguyen
Thanh Tho, a rice trader at Ba Dac Wholesale Market in Tien Giang Province’s
Cai Be District, told the Daily that a kilogram of IR 50404 rice is now sold
at VND6,100-6,200, falling VND50.
The
price of fresh IR 50404 paddy has dropped to VND4,100-4,150 per kilogram from
VND4,250-4,300 days ago.
Explaining
the declining rice and paddy prices, Lam Anh Tuan, director of Thinh Phat Co.
Ltd., a member of the Vietnam Food Association (VFA), said rice exports via
official channels to major markets have turned difficult while small rice
export shipments to China have stagnated due to the northern neighbor’s
border closure.
According
to rice expert Nguyen Dinh Bich, rice exports will have to cope with more
challenges as Thailand is facing higher pressure to reduce its huge rice
inventories estimated at up to 11 million tons.
Many
rice exporting countries have offered lower prices as demanded by importers.
Vietnam
won the contract to sell 150,000 tons of 25% broken rice to the Philippines
after it agreed to cut its bid to US$410.12 per ton from US$419.35.
The
director of a major rice export company in the Mekong Delta region, who asked
not to be named, said the winning bid of US$410.12 means the FOB price at
Vietnam port is only US$340-350.
According
to the director, the contract to sell 300,000 tons of rice to the Philippines
Vietnam won on February 28 consisted of 150,000 tons priced at US$441 and
150,000 tons at US$421. However, when his company was assigned to export rice
as part of the contract, the FOB price was around US$350.
“Therefore,
with the new contract, the FOB price of rice cannot be high,” he said.
Rice
export enterprises currently buy IR 50404 rice at VND7,000-7,100 per
kilogram, equivalent to US$322-327 per ton. So the differential between the
buying price and the FOB price is just US$25 per ton.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 18 tháng 6, 2015
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