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BUSINESS IN BRIEF 2/6
Field research
on the plan for site clearance of
The
airport would be located in Long Thanh District's Suoi Dau Commune in
According
to the Dong Nai Department of Mineral Resources and Environment, the
provincial authorities have mapped out a plan for site clearance compensation
for the first phase of the project (2015 – 2035). Total compensation for
affected families would amount to VND14 trillion (US$642 million).
All
families to be affected by the airport project have agreed to resettle in two
new residential areas, Loc An and Binh Son, in Dong Nai's Long Thanh
District.
Under
the resettlement plans, Dong Nai provincial authorities aim to help residents
from families affected by the project to change jobs.
Speaking
during the field research, Nguyen Hong Truong, deputy minister for transport,
said construction of the airport was an urgent task because transport
infrastructure must be developed in advance to pave way for economic
development.
He said
the Southern Focal Economic Zone, including
During a
seminar held by the Civil Aviation Authority of Viet Nam (CAAV) in
The
airport would also help resolve issues facing
Tran
Dinh Thien, director of the Viet Nam Economic Research Institute and an
enthusiastic backer of the project, said if
"If
we want to compete with
Le Manh
Hung, general director of the Airport Corporation of
Deputy
Minister of Transport Pham Quy Tieu said it was imperative to quickly build
Long Thanh airport to bolster economic development.
Meanwhile,
Dr Tran Dinh Ba, the man who proposed the much-debated straight-line air
route between
Long
Thanh, approved by the Government in 2011, is scheduled to open in 2020 with
a capacity of 25 million passengers a year, according to authorities in
To be
built in three phases, it is expected to be fully completed by 2035, with a
capacity of 100 million passengers.
Construction
of the airport project is scheduled to begin this year.
First
Hung Yen longan batch to be shipped to US
Farmers
in northern Hung Yen province have reason to cheer as their first batch of
longan will be dispatched to the
According
to Deputy Director of the provincial Department of Agriculture and Rural
Development (DARD), Doan Thi Chai, the province has more than 20 hectares of
longan granted regional codes for export to the
They
crop has been grown by over 170 local households in Hong Nam commune in Hung
Yen city and Ham Tu commune in Khoai Chau district, and they expect to
harvest about 80 tonnes this year, she said.
The
official also noted that all coded longan areas will be cultivated under the
Vietnamese Good Agricultural Practice (VietGAP) standards in which farmers
only use permitted bio-pesticides and keep spray diaries to ensure longan
quality and safety.
The
farmers have been trained in longan growing techniques and the proper use of
herbicides and taught the export procedures required by the
Hung Yen
province has more than 3,000 hectares of longan grown in peak season, two
thirds of which are farmed in Khoai Chau, Tien Lu and Kim Dong districts and
Hung Yen city.
The
province has been working with local growers to build intensive longan
farming areas in a bid to improve fruit quality and productivity.
Investment
opportunities in
The
Central Highlands holds a strategic position in
To
maximize advantages and potentials for local socio-economic growth, Central
Highlands provinces need to outline special preferential policies and
mobilize greater investment resources for sustainable development.
Its
climate and terrain have helped the Central Highlands develop a strong
agricultural industry, especially industrial crops like coffee, pepper, and
rubber.
The
Central Highlands is also known as a production zone, preparing vegetables
and flowers for exports.
Located
in the drainage basin of the Se san, Srepok, and
The
region is endowed with rich mineral reserves including bauxite, and gold-ore,
and plentiful materials for building, and a temperate climate and natural
conditions which are ideal for luxury tourism development.
Tran
Viet Hung, deputy director of the Central Highlands Steering Committee, said
that the Prime Minister has agreed in principle that the Ministry of Planning
and Investment should work with ministries, relevant agencies, and the
region’s steering committee to review existing policies and make necessary
changes in areas where the Central Highlands is strong. Incentives will be
discussed in detail to attract investment to the region’s advantages,
including tourism and industrial crops.
Current
investment in the region remains modest compared to
The
Central Highlands contributes about 9% of
Economists
emphasize closer links between scientists, businesses, the state, and farmers
to improve the value of farm production.
Applying
high tech to production models is another recommendation for the region,
especially in key investment fields.
In the
future, commercial banks are expected to pour about US$690 million into the
region’s key sectors - hydroelectricity, thermo-power, transportation, and
agricultural production – to upgrade their production technologies.
Nguyen
Kim Anh, deputy governor of the State Bank of
Anh said
the central bank will continue to increase credit investment in Central
Highlands provinces, giving priority to agriculture, farmers, rural areas and
the region’s advantageous products such as coffee, tea, and rubber. Loans
will be specifically prioritized for agricultural production and large-scale
agricultural production models using high-tech.
Vu Van
Tu, director of Lam Dong province’s Center for Investment, Trade, and Tourism
Promotion, said the region is interested in attracting potential investors
both at home and abroad.
"Lam
Dong has promulgated a series of support policies for investors in the
agricultural sector to reduce post-investment interest rate for high-tech
agriculture production, and increase construction material production and
processing and farm produce processing. We also have a policy to support
businesses in brand name development and market expansion,” Tu said.
Nojima
Corporation, one of
The
Japanese firm wanted to add over 3.7 million more TAG shares, equivalent to a
20.86% shareholding, to its stock in a period from May 28 to June 12.
However,
the value of the deal has not been revealed by any parties involved.
With the
recent move, Nojima Corporation, which currently owns about 1.8 million
shares, or a 10.06% stake in TAG, will own 30.92% of the electronics retailer
and become its largest foreign stakeholder if the transaction is carried out.
In
addition, another foreign shareholder, Aureos Southeast Asia Fund, has
registered to sell its entire stake in TAG, or over 3.7 million shares,
during the same period.
The
Aureos Southeast Asia Fund has been a strategic partner of Tran Anh since
2010.
Thus, if
the deal is closed by the two parties, the fund will fully divest from TAG
after five years.
Tran Anh
Digital World JSC is expanding its network after establishing 15 major
electronics shops in the north, and is planning to add 8-9 more stores in the
region this year.
In the
first quarter of 2015, Tran Anh posted an after-tax profit of VND3.9 billion
(US$179,400), up 11.5% over the same period in 2014, equivalent to its profit
in the entire year of 2014.
With a
profit target of VND7.8 billion (US$358,800), the firm completed 50% of the
plan in the first quarter of the year.
Nojima
entered
Nojima’s
move is the second big development in the local electronics retail sector
this year after leading Vietnamese property firm Vingroup introduced VinPro
electronics shops in March at the Vincom shopping centers it runs in major
cities across the country, including
Meanwhile
VinPro+, offering the same kind of products including high-tech gadgets like
smartphones, tablets, laptops, electrical appliances, and other accessories,
will fill the places where Vincom is still absent from in many other
provinces and cities nationwide.
Vingroup
has set a target to bring the total number of VinPro and VinPro+ stores to 25
and 100, respectively, in 2015.
According
to market research company GfK, sales of consumer electronics reached over
VND116 trillion (US$5.5 billion) in Vietnam last year, the second consecutive
year the sector has achieved an annual growth rate of over 20%.
The main
engine of growth came from the mobile phone/smartphone segment, with an
annual rate of 30%, GfK said.
In 2014,
Vietnamese spent nearly VND50 trillion (US$2.35 billion) buying mobile
phones/smartphones, equal to 43% of the total spending for all
electronic/electric products.
With the
overall growth of the market, coupled with the opening of a new series of
electronics chains, some firms have announced revenue expansion exceeding the
industry’s average in 2014, such as Mobile World (66%), FPT Shop (78%), and
Tran Anh (29%).
Aditya
Birla Group mulls investment in
Indian
billionaire Kumar Mangalam Birla is mulling over a plan to invest in
A
delegation of representatives from the Aditya Birla Group recently began a
due diligence visit to
Aditya
Birla is the third largest multi-national group in
Thai
Nguyen seeks $2.6 billion in FDI
The
The
on-line newspaper quoted Thai Nguyen Department of Planning and Investment as
saying that since the beginning of 2015, the province has seen a four-fold
increase in FDI compared with same time last year, as it topped $917.4
million.
In
recent years, Thai Nguyen has gained the trust of foreign investors due to
its efforts in improving the investment environment. The province now ranks
10th among the country's 63 provinces and cities in terms of attracting FDI,
the department said.
In 2014,
Thai Nguyen ranked eighth among 63 provinces and cities nationwide, in terms
of the provincial competitiveness index (PCI). Many investors have praised
the province's legal institutions and business promotion policies.
The
report from the Ministry of Planning and Investment's Foreign Investment
Agency revealed that as of April 2015, the province had attracted 80
foreign-invested projects with a total registered capital of more than $7
billion. Further, in the past four months the province lured $114.1 million
in FDI.
Chairman
of the provincial People's Committee Duong Ngoc Long said that his province
would always create the most favourable conditions for investors, in term of
investment licensing and ground clearance.
Regarding
administrative reforms, the province has enacted 20 mechanisms and policies
to facilitate investment, notably the application of the "one-stop"
shop mechanism in completing administrative requirements.
Regular
dialogues between businesses, provincial officials and bankers to ease
difficulties for businesses have also been ongoing. As a result, many
investors have received preferential loans from commercial banks and
benefited from tax policies, according to Long.
Mekong
Capital proves attractive
With
clear investment strategies and outstanding financial results from its prior
equity funds, Mekong Capital has now launched its fourth fund, Mekong
Enterprise Fund III.
According
to Mekong Capital’s founding partner Chris Freund, the new private equity
fund will focus on the company’s proven areas of expertise in retail and
restaurants, fast moving consumer goods, pharmaceuticals, and consumer
products and services such as education.
“When we
invest in these sectors that are clearly our expertise, we can add a lot of
value as a shareholder,” said Freund. “We’ve chosen not to focus on other
sectors like manufacturing, real estate, infrastructure, or banking as they
are outside of our area of expertise.”
Mekong
Enterprise Fund III (MEF III) has raised $87 million in the committed capital
so far, and the fund is aiming for a maximum of $150 million in the committed
capital. It has a 10-year life and is expected to make around 10 key
investments.
Unlike
the company’s previous three funds where it picked up most of its investors
from North America, MEF III has witnessed a notable shift to Asian investors
this time around, accounting for 30 per cent of the total investors, followed
by 27 per cent and 23 per cent from European and North American investors,
respectively, and 17 per cent from the IFC which is a multilateral. Freund
said that there seemed to be more Hong Kong and Singapore-based investors
investing in private equity funds at present, whilst for the first time,
Mekong Capital had some Japanese investors showing great interest and a
desire to get involved in investments in Vietnam.
The
local economy, in Freund’s view, is gradually improving, and credit growth,
in particular, is rather promising. He claimed that this could, in turn,
translate into a rising spending power. “As a consumer-driven business, as
long as credit growth is happening and is stable, it is all good for consumer
spending,” he added.
Freund
cited MobileWorld as a successful investee of Mekong Capital. When it first
opened back in 2007, MobileWorld had just a handful of locations dotted
around the country. Now, however, it has expanded its fleet to 444 stores
nationwide, and its growth continues apace at around 20 stores a month for
2015. According to Freund, many of the company’s competitors might say they
listen to their customers and are doing what’s best for them, yet they do not
use this as their organising principle. “MobileWorld, as a consumer-focused
business, has, in fact, no competitors, as the CEO’s point of view is always
focused on what’s best for the customers. And if he doesn’t think it’s best
for the customers, he will say no, even if it’s good for the company,”
stressed Freund.
Mobile
World achieved a 40 per cent net profit growth rate in the first quarter of
the year compared to the first quarter of 2014.
Local
firm wins contract for expanding Tan Son Nhat airport
The Hoa
Binh Construction and Real Estate Corporation (HBC) has won the contract for
the first phase of the project to expand the T2 International Terminal of Tan
Son Nhat International Airport in Ho Chi Minh City.
The
airport expansion will be conducted in two stages, with the initial stage set
to expand the east wing of the terminal while the building in the west wing
will start once the east part is fully operational.
Once the
expansion is completed, Tan Son Nhat Airport will be capable of serving about
13 million passengers per year, up 3 million from the current capacity.
The
contract, worth 0.6 trillion VND (27.5 million USD), is scheduled to finish
in 417 days.
The HBC
has constructed several projects, including the construction and expansion of
Can Tho, Tan Son Nhat and Phu Quoc airports.
Malaysia
hospitals works with Vietnamese medical insurance firms
A
Memorandum of Understanding (MoU) on co-operation was signed on May 25
between Malaysian hospitals and Vietnamese insurance companies in Ha Noi.
The
signing ceremony, organised by Insmart Co Ltd, saw the inclusion of top
Malaysian private hospitals, such as the National Heart Institute, Ramsay
Sime Darby Health Care and Pantai Hospital Kuala Lumpur, with insurance
providers in Viet Nam, including Post and Telecommunication Joint Stock
Insurance Corporation (PTI), Vietinbank Insurance Company (VBI) and
Petrolimex Insurance Corporation (PJICO).
Under
the MoU, which was encouraged with the presence of Ambassador Extraordinary
& Plenipotentiary of Malaysia to Viet Nam Dato' Azmil Mohd. Zabidi, the
Malaysian hospital will be part of the Vietnamese insurance companies'
service, ensuring that the customers enjoy insurance rights and interests that
are similar to those in Viet Nam.
Sherene
Azli, Chief Executive Officer (CEO) of the Malaysia Healthcare Travel Council
(MHTC), said she hoped that the numbers of healthcare travellers from Viet
Nam would double this year, knowing that Malaysia offers a seamless
end-to-end healthcare service strictly monitored by the Malaysian Ministry of
Health.
The MHTC
was established by the Government of Malaysia as the primary agency to
develop the healthcare travel industry and promote Malaysia as the preferred
destination for healthcare travel in the region. MHTC works closely with all
relevant government agencies and private healthcare organisations to ensure
quality care and facilitate smooth entry of healthcare travellers.
Azli
said the outstanding advantages of her country's medical service included
healthcare quality that meets global standards, the presence of leading
global healthcare centres, advanced medical technology and competitive costs.
"Rich
in our tourism offerings, we want healthcare travellers who come to Malaysia
for treatment to feel at ease and truly experience Malaysian
hospitality," said Sherene Azli.
Speaking
at the ceremony, Deputy CEO of PTI Nguyen Duc Binh said the partnership was a
valuable strategic alliance that would allow the two sides to leverage their
established infrastructure and insurance base in Viet Nam into a new market,
such as Malaysia, with a strong government-backed healthcare travel system in
place.
Nguyen
Hong Phong, Deputy CEO of ViettinBank Insurance Company Ltd., said he wanted
customers to have information about affordable healthcare insurance options
through the partnership with these top Malaysian hospitals.
Phong
said his company had co-operated with Insmart for five years to develop
healthcare services in Viet Nam. This was the first time they were joining
hands to develop insurance services in Malaysia.
"With
this co-operation initiative, we will provide customers various healthcare
choices. We have insurance packages from VND100 million (US$4,608) to VND2
billion ($92,165) per year for the customers," Phong said.
He said
during his visits to Malaysian hospitals, he saw advanced facilities and
quality healthcare services with spending that was cheaper than in other
countries.
Malaysia
has excellent cooperative relationships with Viet Nam in economics, trade and
investment areas, which have seen rapid and stable development over the
years. Malaysia hopes that this trend continues and spills over into the
healthcare sector, as the country is prepared to compete with the world's
best in healthcare travel, with its numerous medical and wellness offerings.
Azli
said that more than 5,000 Vietnamese patients visited Malaysia for healthcare
treatment in the 2013-14 period. The figure was expected to double this year.
With the
diversification of healthcare travel services, Azli said that the Vietnamese
visitors would feel comfortable and have good experiences from Malaysian
hospitals.
It's
reported that Malaysia received some 800,000 medical tourists in 2014.
Popular treatments being sought are in cardiology, oncology, fertility
treatments, orthopedics, ophthalmology, dental treatments, health screenings,
and cosmetic surgery. Malaysia has recently won the Medical Travel
"Destination of the Year 2015" award, a prestigious accomplishment
presented by the International Medical Travel Journal (IMTJ) in the United
Kingdom.
Mexico
asked to open trade office in Vietnam
Vietnamese
Ambassador to Mexico Le Linh Lan suggested Mexico open a trade office in the
Southeast Asian country while attending a business forum in Mexico City on
May 28.
Representatives
from dozens of Vietnamese firms in Mexico participated in the four-day event
organised as part of a series of activities to mark the 40th anniversary of
bilateral diplomatic ties.
Ambassador
Le Linh Lan highlighted Vietnam’s active engagement in regional and
international financial organisations, as well as the country’s outstanding
achievements in external, social and economic affairs thanks to the “doi moi”
(renewal) process.
She
noted that trade with Mexico reached 2.26 billion USD last year, posting an
annual rise of 40 percent. In the first quater of 2015, bilateral trade was
valued at 776 million USD.
In
addition to the existing bilateral free trade pacts, the two countries are
pushing ahead with negotiations to set up a Joint Committee on Economic,
Trade, and Investment Cooperation, and sign an agreement on fisheries and
seafood cooperation.
Vietnamese
businesses shared their experience in trade with their hosts, including tax
regulations, transportation and payment methods.
The
event was held by the Vietnamese Embassy in Mexico in conjunction with the
Vietnam Chamber of Commerce and Industry, and the Mexican Business Council
for Foreign Trade, Investment and Technology.-
Southeastern
region aims to welcome 30 million visitors in 2020
The
tourism sector in the Southeast region is striving towards attracting 30
million visitors by 2020, earning around 125 trillion VND (5.75 billion USD),
according to the new master plan for the sector.
According
to the plan, which was released in Ho Chi Minh City on May 28, by 2030, the
region is expected to attract 50 million visitors, generating 230 billion VND
(10.58 billion USD).
The plan
lists practical measures for boosting regional tourism, including developing
human resources, fostering regional tourism links, expanding markets and
diversifying tourism goods and services.
According
to Nguyen Thi Hong, Vice Chairman of the Ho Chi Minh City People’s Committee,
Ho Chi Minh City, one of the region’s six localities, has recorded an average
annual tourism growth of 26 percent, accounting for 11 percent of the city’s
GDP.
The new
plan plays an important role in boosting the tourism sector in the whole
region as well as each locality in particular, she said.
Meanwhile,
Deputy Minister of Culture, Sports and Tourism Dang Thi Bich Lien said the
regional tourism sector had grown, significantly contributing to
socio-economic development in the region.
However,
she pointed out that the sector lacked a long-term vision to tap into its
full potential, adding that the master plan was crucial for sustainable
development in the region.-
Reform, outdated EPZs advised
Between
60 and 70% of equipment and technologies used at export processing and
industrial zones is outdated, resulting in products with low added value, the
HCM City People's Committee has said.
The
committee has asked the HCM City Export Processing and Industrial Zone
Authority (HEPZA) to restructure business operations of industrial zones,
most of which have been operating for about 20 years.
The city
asked HEPZA to examine enterprises' capital, technology, products, land-use
efficiency, and employees' professional skills.
The city
said that Freetrend Company in Thu Duc District's Linh Trung Processing Zone,
for example, did not operate efficiently.
It has a
110,000 sq m plant and 21,000 workers to process footwear for many
international brand names. Its turnover is VND1.4 trillion (US$67 million) a
year but the company only contributes VND22 million (US$1,000) in tax.
At least
100 companies in the city are operating with a similar low economic
efficiency, the committee said.
According
to HEPZA's management board, most foreign projects are labour-intensive with
low added value, especially in electronic assembling, footwear, and textiles
and garments.
Seventy-three
percent of enterprises in HEPZAs are small enterprises with capital under
US$5 million.
Very few
of them produce high added value products. When the industrial zones first
opened, the focus was simply on creating new jobs. There were few standards
applied to technology, capital or management skills.
In 2013,
only 1% of enterprises had modern technology, while 51% had outdated
technology.
Links
between foreign and local enterprises were also poor as most foreign
companies imported equipment and raw materials.
To
implement business restructuring, the city plans to focus on technology
investment, shifting from processing to manufacturing technology to increase value
addition and enhance competitiveness.
The city
will invite only investors with high added value production and green
technology, and it will focus on support industry and services to industry.
Labour-intensive
companies and low- and medium –level technology enterprises will receive
support to restructure their business.
Product
design and manufacturing capability and ISO quality management application
will also be speeded up.
"Four
key industries, including: engineering, electricity-electronics, pharmaceutical
chemistry and food processing have attracted workers from intensive-labour
industries," Vu Van Hoa, head of the HEPZA's management board was quoted
as saying in Sai Gon Giai Phong (Liberated Sai Gon) newspaper.
The
number of workers in the engineering industry has increased by 15.6%,
electricity-electronics 9%, pharmaceutical chemistry 14.6% and food
processing 21.6%, compared to the same period last year.
"There
are 7,000 excellent workers being sent to train in developed countries like
Japan, the Republic of Korea, Singapore and Thailand," Hoa said.
He said
that seven low-technology and labour-intensive projects in Linh Trung
Processing Zone and eight others in Tan Thuan Processing Zone had moved to
the Mekong Delta provinces of Ben Tre and Tra Vinh.
"The
infrastructure on the empty land will be upgraded, and we'll look for
high-technology projects," he said.
‘Pepper
spray' hits coffee, rubber
Farmers
in the Central Highlands province of Dak Lak have chopped down some of the
area's most essential crops, coffee and rubber, to make room for the possibly
more lucrative black pepper plant.
After a
rapid increase in Viet Nam's pepper cultivation, the area has reached 80,000
hectares.
According
to the Viet Nam Pepper Association, the price of domestic pepper has
increased continuously since 2007. It cost VND150,000 (US$6.9) per kg in
early January, and jumped to VND175,000 ($8.1) by the end of the first
quarter of this year. The price of exporting black pepper was nearly $8,800
per tonne, an increase of 35 per cent compared with the same period last
year.
The
price hike has encouraged farmers to swap their farms for pepper or increase
their yield, regardless of if their land can support it or not.
Hoang
Phuoc Binh, vice chairman of the Chu Se Pepper Association, said the pepper
supply would increase by hundreds of thousands of tonnes if the cultivation
area kept increasing at a similar pace. He said the planting was being
rushed.
Nguyen
Van Cuong, a farmer in Cu M'Gar District's Ea Kpam Commune said he hired five
people to chop down rubber trees – rubber was quite cheap and if pepper
prices remained stable, it would be worth the investment. The land would be
used for pepper plantations, and about 500 rubber trees would be used as
pillars to help the pepper grow.
Dao Xuan
Vinh, a farmer in Buon Ho Town's Thong Nhat Ward, said he switched two
hectares of rubber over to pepper with the hope of making billions of dong in
the next few years.
Ho Van
Khac and Pham Ngoc Binh, two farmers in Phu Xuan Commune, even filled up a
playground and pond to make more land to grow pepper.
Trinh
Tien Bo, head of the provincial Department of Agriculture and Rural
Development's cultivation unit, said pepper was planted over 16,000ha, exceeding
the goal for 2020 by 1,000ha. The unit estimated that 2,000 more hectares
would be planted by the end of the year.
Bo said
the biggest concerns were the crops' quality and productivity. The pepper was
a sensitive tree that would die en masse without proper cultivation.
The Viet
Nam Pepper Association asked the ministry to require local agricultural
authorities to help farmers plant the crops correctly and avoid fertiliser
abuse to assure productivity.
Delta
needs clear zoning, rice brand
Growing
areas should be clearly zoned and a national brand should be developed to
promote rice from the Mekong Delta, a conference heard in Can Tho on
Wednesday.
Pham Van
Du, deputy chief of the agriculture ministry's Cultivation Department, told
the conference on large-scale field production in the delta that improving
the incomes of farmers and rice-trading businesses was among important
measures to promote rice production.
Nguyen
Quoc Viet, deputy head of the Steering Board for the Mekong Delta, said the
new large-scale field rice production model was first introduced in the
Mekong Delta in 2011, and the area under it had risen from 7,800 hectares in
the beginning to 290,000ha by the end of 2014.
It had
also helped improve the quality of the grains and value addition to make them
more competitive in the domestic and overseas markets, he said.
The
impact of the new model should be assessed and its likely challenges
identified in the era of integration, he said.
The
Government issued a decision in 2013 to encourage a switch to it.
During
last year's summer-autumn rice crop, 101 rice trading companies from 13
Mekong provinces signed deals with 88 co-operatives to buy rice grown on
42,605ha under the new model.
The
deputy head of the department, Pham Van Du, said: "The co-operatives
established for the large-scale field production model are of great
importance. They supply farmers with seeds, fertilisers and agricultural
chemicals."
Nguyen
Tri Ngoc, secretary of the Association of Agricultural Production and Rural
Development, said despite a trade surplus in 2014, the country's agriculture
had showed weaknesses.
"Its
growth rates went down and the prices of its produce plunged, with the prices
of some Vietnamese produce ranking seventh or ninth behind those from other
countries.
To make
the large-scale model more profitable, farmers must use rice varieties
confirmed by trading businesses, he said.
Declining
local, international prices hit rubber shares hard
A
decrease in global and domestic rubber prices had cut into both profits and
shares in rubber firms, Securities Investment reported.
According
to the Viet Nam Rubber Group (VNR), the global rubber price had fallen to
US$1,500 per tonne from $5,000 per tonne in 2011.
The VNR
also reported that rubber prices in the domestic market were fluctuating at
around VND31 million ($1.43 million) per tonne at the moment, while the
production cost is already VND30 million ($1.39 million) per tonne.
As a
result, four out of six rubber shares listed on the HCM Stock Exchange (HOSE)
have declined since the beginning of the year.
The
Southern Rubber Joint Stock Company (CSM) reported that its first quarter
profits fell by 30.4 per cent to VND54.6 billion ($2.53 million) against the
same period last year.
CSM's
value on the southern bourse has also decreased from VND43,000 in January to
VND39,400 at the end of the last session.
Similarly,
Dong Phu Rubber Company (DPR) recorded revenue of VND37.7 billion ($1.74
million) in the first quarter, a decrease of 28 per cent from last year's
figure. DPR's profit mostly came from selling its farms.
Shares
in DPR have fallen 10 per cent since the beginning of the year to VND32,900.
Only two
rubber shares have risen on the market, but their growth and liquidity have
been unstable.
Hoa Binh
Rubber Joint Stock Company (HRC) recorded total revenue of VND55 billion
($2.55 million), including VND26.9 billion ($1.24 million) from rubber
production and a pre-tax profit of VND28 billion ($1.3 million).
HRC
reported that farm sales alone accounted for VND28 billion ($1.3 million),
half of the company's revenue in this first quarter.
HRC's
share have risen from VND45,800 in March to VND46,400 after the last session,
but liquidity has remained. In the last ten sessions, HRC's average trading
volume has been only 218 shares.
In order
to cope with problems in the rubber industry, the VNR will ask rubber firms
to cut 30 per cent of total investment to reduce production costs.
Tran
Ngoc Thuan, director general of the VNR, said that rubber companies should
maximise their harvests on rubber plantations by growing other crops there.
Some
firms had planted other trees like coffee and acacia on the plantations to
reduce production costs and make the best use of the available land resources,
he added.
Thai
new Vietcombank vice director
Viet Nam
Bank for Agriculture and Rural Development's Deputy Director Dinh Thi Thai
will be deputy director of the Bank for Foreign Trade of Viet Nam
(Vietcombank) from June 1.
Thai
received the appointment order from Vietcombank Chairman Nghiem Xuan Thanh at
the bank's head office in Ha Noi on Thursday, after the State Bank of Viet
Nam gave its nod the previous day.
Thai has
a master's degree in finance and 16 years of experience in banking and
finance. She held important posts related to investment assessment,
supervision and credit risk management at Vietcombank, before being appointed
deputy director of Viet Nam Bank for Agriculture and Rural Development or
Agribank in June 2014.
Ha
Noi locates new fair centre
The
National Exhibition and Fair Centre will be located on the intersection of
Nhat Tan-Noi Bai highway and National Highway No 5 in Dong Anh District, the
Ha Noi People's Committee said.
The new
centre will cover a total area of 128ha, including 46ha of the Van Tri fresh
water lagoon and the River Thiep water surface.
The land
is part of the master plan for the construction of the capital till 2030,
with a vision towards 2050, as approved by the Prime Minister.
The
committee said the location of the exhibition centre would meet the
requirements relating to event organisation, traffic and transport of
commodities (near Noi Bai International Airport and other key highways).
VPBank
offers preferential loans
The Viet
Nam Prosperity Bank (VPBank) is offering a yearly preferential interest rate
of 6.99 per cent for mortgages and unsecured loans, in a bid to share
customers' financial difficulties.
Accordingly,
borrowers who seek to purchase a house, automobile or capital for a business,
would enjoy a fixed interest rate of 6.99 per cent for up to 25 years. This
applies for loans not greater than VND10 billion (US$458,000). Plans call for
mortgage loans to be approved in two working days. The total funding
allocated for the programme are VND5 trillion ($229 million).
In
addition, VPBank has also provided VND1 trillion ($45.8 million) for
unsecured loans for those citizens with incomes of more than VND4.5 million
($206) a month who have no mortgage assets. Borrowers could receive up to
VND500 million ($22,900) over five years.
VPBank
has striven to renew their products and services to bring outstanding
benefits to customers.
Sony
showcases new Bravia™ 4k LCD TV line
BRAVIA™
4K LCD televisions from Sony are now available in Viet Nam, after they were
announced earlier this year at CES 2015.
The
televisions use the advanced 4K Processor X1, with improved clarity, colour
accuracy and contrast. The new X9000C series features an ultra-thin, floating
style, making it Sony's thinnest range of TVs yet with edge-to-edge viewing.
The
models range in size from 43 to 75 inches, and include four new series and
nine new models. As the industry leader in 4K picture quality, Sony has
committed to developing technologies to enhance the viewing experience is
showcased with this line-up. The new 4K Processor X1 was built to enhance
clarity, colour and contrast while improving the streaming quality of images
that 4K content providers supply. Combined with advanced 4K X-Reality™ PRO
upscaling algorithm technology, these televisions will use 4K resolution,
providing the best image quality regardless of the source.
Viettel
launches MyDoctor healthcare service
Central
Endocrinology Hospital and mobile network operator, Viettel, officially
introduced healthcare and consultation services through a video call,
MyDoctor, in Ha Noi yesterday.
MyDoctor
will provide tele-healthcare and consultation services by allowing patients
to select and connect with their favourite doctors who will keep an eye on
their health condition and offer them prescriptions at their homes.
MyDoctor
will store patients' medical records so that doctors can easily locate
patients' documents and often keep track of their health, and hence, give
timely advices.
The
healthcare service through smartphone foundation will improve services in
remote and mountainous areas.
Housing
supply in HCMC profuse: businesses
The real
estate market has not escaped from consequences of the 2009-2013 crisis but
has significantly recovered this year. A slew of new projects have gone on
sale and investors have entered a fierce race to get customers.
After
three years of construction, Dai Quang Minh Company has announced to open
nearly 400 apartments of Sala project for sale in June at the price of VND40
million (US$ 1,900) per square meter. Locating adjacent to Sala is The Sun
Avenue in Nguyen Huu Tho and Dong Van Cong Streets, where the square meter is
sold at VND24-28 million.
Over 700
apartments under Him Lam Cho Lon project have also been offered for sale.
Other projects have gone on sale such as 8X Rainbow in Binh Tan, Florita in
District 7, TDH-Phuoc Long in District 9, Idico in Tan Phu, An Gia Riverside
in District 7, Saigonres Plaza in Binh Thanh, La Astoria in District 2…
Several
housing land projects have also been opened for sale such as Five Star, Cat
Tuong Phu Thanh and SJC@Vsip...
Chairman
of HCMC Real Estate Association Le Hoang Chau said that businesses have
brought out new projects and revived a number of frozen ones after eight
years of difficulties.
The
launch of a series of new projects with attractive advertisement has confused
potential house buyers and put investors in a severe competition to get
customers. The Government has recently warned of the return of a property
bubble.
Deputy
Director of Him Lam Land Company Ngo Quang Phuc said the housing supply very
abundant and advised customers to carefully find out about projects that they
are interested in so as to make an accurate choice, suiting their demand and
financial conditions.
CIEM:
SOE reform vital for private sector
The
president of Central Institute for Economic Management (CIEM), Nguyen Dinh
Cung, has underscored the importance of State-owned enterprise (SOE) reform,
saying there would be no room for the private sector to survive if the reform
gets stuck.
“Many
foreign experts have told me to stop discussing SOE reform because this is a
formidable task,” he said. But he replied that Vietnam has no choice but to
restructure the State sector.
“Reality
has proved that if SOEs have not been restructured, there would not have been
any room for private firms to survive,” he told a workshop on the negative
impact of SOEs on the market, structural reform and economic growth in Hanoi
City on Wednesday.
Pham Duc
Trung, deputy head of CIEM’s Committee for Enterprise Reform and Development,
said SOEs have enjoyed exclusive incentives.
At
present, Vietnam has seen nearly 800 wholly State-owned enterprises with
combined assets of around VND2,800 trillion, 80% of gross domestic product
(GDP). This group has total equity of VND1,100 trillion and debts of VND1,700
trillion.
If their
debts were counted as public debt, the nation’s public debt would double.
Eight State-run groups account for most of the loans.
As
estimated, SOEs are holding 70% of business and production facilities. Every
year, the State budget allocates budget quotas to State-run economic groups,
corporations and banks. The total amount is nearly VND1.5 trillion this year,
nearly VND2.3 trillion last year, VND751.5 billion in 2013, VND5.75 trillion
in 2012, over VND5.2 trillion in 2011 and more than VND5 trillion in 2010.
The fact
that SOEs are entitled to more incentives than other economic sectors have
caused distortions on the market, unhealthy competition, wrong market signals
and inefficient allocation and use of resources, Trung said.
Economic
expert Dinh Tuan Minh said total assets of Vietnamese SOEs make up 80% of
GDP, well above the 15% in Organization for Economic Cooperation and
Development (OECD) countries. The State cannot set up an effective governance
model for such giant SOEs.
Expert
Pham Chi Lan pointed out the large scale of SOEs as the main reasons why
Vietnam’s economy cannot be a market economy.
The
State holding has even expanded in recent years. If the situation remains
until 2018, Vietnam will not be able to develop a real market economy
although the World Trade Organization (WTO) lifts the non-market mechanism
for Vietnam, she said.
Honda
motorcycle sales up
Honda
Vietnam recorded a year-on-year increase of 3% in motorcycle sales in the
fiscal year 2014 after sales falls in two previous years.
In the
fiscal year, from April 2014 to March 2015, Honda Vietnam sold 1.9 million
bikes, up 3% against the previous fiscal year. Its market share rose by two
percentage points to 70%, said Minoru Kato, who is general director of the
company and chairman of the Vietnam Association of Motorcycle Manufacturers
(VAMM).
Vietnam
consumed 2.71 million motorcycles in the fiscal year, equivalent to the previous
year, the leading motorcycle producer in Vietnam said in a report on sales
and new targets.
Honda
Vietnam credited the sales growth to the launch of its nine new bike models.
The company also exported 91,000 completely built-up scooters of PCX, Lead and
SH Mode models as well as spare parts to many markets, up a staggering 179%
against the previous year. Its export value is put at US$245 million.
The
company looks to sell two million motorcycles in fiscal 2015 and obtain
export revenue of US$345 million, surging 41% against the previous year.
Last
year also marked the first year for Honda Vietnam to foray into the clutch
motorcycle segment with the launch of MSX model, and sales reached 2,000
units. However, the firm does not have plans to join the market segment of
high-capacity motorcycles this year although it imported several big bikes to
gauge the market.
Honda
Vietnam will continue to focus on the scooter and motorbike segments in this
market.
Honda
Vietnam now has three motorcycle factories and one car factory with a total
of 9,000 employees. Opened in November last year, its third motorcycle
facility produced 27,100 units in the last three months of the last fiscal
year.
For the
automobile market, Honda Vietnam reported sales of 6,610 units last year and
looks to increase the number to 7,200 units this fiscal year.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 1 tháng 6, 2015
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