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BUSINESS IN BRIEF 5/6
DongA
Bank expands auto banking services
DongA
Bank has deployed another 17 auto banking transaction points in
The auto
banking system is an automatic transaction bank model that serves customers
all around the clock, allowing most bank transactions.
Deputy
Director of the State Bank Vietnam (SBV) branch in
According
to Tran Phuong Binh, General Director of DongA Bank, the model was first introduced
in
The
lender plans to deploy more than 150 auto banking transaction points across
the country by the end of this year, Binh added.
An
Giang improves agricultural sector through GAP
The Mekong
Delta
Accordingly,
GAP’s standards will be applied for 50 agricultural production models of
individuals and organisations.
Those
who want to receive support to apply GAP standard should meet certain
requirements, such as meeting the State’s regulations on environment,
taxation and food safety.
They
should pledge to improve product quality and quantity; expand the market,
boost exports and continue to carry out other solutions after receiving the
support.
Specifically,
the province will fully support technical work such as terrain research and
analysing samples of land, water and air to determine farming areas suitable
for applying GAP standards.
Meanwhile,
the province will also support individuals and organisations in obtaining GAP
certificates. The supporting amount will vary, depending on the type of
production model and the number of GAP standards that individuals and
organisation apply for.
Interest
rate for preferential credit programmes reduced
The
Prime Minister recently issued Decision 750/QD-TTg on lowering interest rates
for preferential credit programmes at the Vietnam Bank for Social Policies
(VBSP).
Accordingly,
lending rates for poor households, students and those working abroad for a
limited duration as well as loans from the National Employment Fund will be
reduced from 7.2 percent per year to 6.6 percent, or 0.55 percent per month.
Interest
rates for clean water and environmental sanitation programmes in rural areas
and business households in underprivileged areas will also be lowered to 9
percent from 9.6 percent annually, equivalent to 0.75 percent per month.
The
Decision will take effect on June 5, 2015 and only applies to new loans.
Bouchouareb
made the statement while meeting with Vietnamese Minister of Planning and
Investment Bui Quang Vinh in
The two
sides agreed to focus on investment cooperation in the fields of garments,
footwear, telecommunications, and fertiliser, as
Bilateral
trade turnover between
Businesses
need to pay heed to regulations in their import and export markets to
optimise opportunities brought about by free trade agreements (FTAs), as a
number of such deals have been or are to be signed, according to insiders.
FTAs
offer a host of opportunities for
However,
these trade pacts also require the Vietnamese Government to strictly comply
with commitments regarding support policies for domestic industries, she
noted.
Nguyen
Anh Duong from the Central Institute for Economic Management said the FTAs
will bring about major challenges for local companies. He cited the food
processing industry as an example: partner countries may levy stricter
anti-dumping measures while credit support to domestic companies in the field
will be limited.
Meanwhile,
the proportion of foreign ownership of electronics companies will be raised
as promised in FTAs, putting more pressure on domestic firms, he added.
Huynh
Van Hanh, Vice Chairman of the Handicraft and Wood Industry Association of Ho
Chi Minh City, said agriculture is more vulnerable to FTA impacts since it
uses a majority Vietnamese workforce while market fluctuation and weather
conditions also pose risks to this sector.
Besides
encouraging scientific and technological application and market expansion to
assist agriculture, relevant agencies should enhance communication on both
advantages and challenges brought about by FTAs to enable enterprises to
utilise these deals effectively, he noted.
Tran Huu
Huynh, Head of the VCCI’s Advisory Committee on International Trade Policies,
also highlighted the activeness of companies in FTA negotiations since Prime
Minister Nguyen Tan Dung ordered Vietnamese negotiators to consult
organisations, associations and businesses before engaging in FTA talks.
Clarification
needed in
Questions
were raised surrounding the
Almost
participants, including managers, scientists, voiced their support to
construction of
According
to Nguyen Xuan Thanh, Director of the Fulbright Economics Teaching Program,
the
Thanh
said the predicted profit rate of 4 percent over the life of the airport is
unrealistic and asked the investment report to clarify how the project is
financially feasible including addressing the ability to pay off debts from
loans to implement project.
Luong
Hoai
Concerning
investment capital, Vo Dai Luoc from the Vietnam Economics Association said
the Government should only contribute 20 percent of total capital and the
remaining should be sourced from local and international investors.
The
multi-billion-dollar
Tan Son
Nhat is the only international airport in the region and is becoming
increasingly crowded; expansions to that airport have been deemed vastly
expensive.
Quang
Ninh looks to attract Japanese investment
Quang
Ninh has chosen to focus on attracting Japanese investments by improving its
business climate and upgrading infrastructure.
According
to Vice Chairman of the provincial People’s Committee Nguyen Van Thanh, the
locality will speed up construction of a highway connecting Ha Long city with
the neighbouring Hai Phong port city, which is also linked to the Hai Noi-Hai
Phong highway.
Work on
a road to the Viet Hung industrial zone, which is home to several
Japanese-invested projects, will be boosted, Thanh said, adding that Quang
Ninh has also asked investors to complete their infrastructure construction
and upgrades at the Viet Hung and Dong Mai industrial zones.
The
provincial People’s Committee has required the local education sector to work
with the Japan International Cooperation Agency and the Ministry of Education
and Training to consider teaching the Japanese language at local high
schools. It also plans to send around 20 graduate students to
Tran Nhu
Long, head of the province’s Investment Promotion Board, stated that the
province will actively provide information on its business climate and
policies to Japan’s prestigious press agencies like Nikkei Daily and JiJi
Express news agency while simultaneously updating information on the board’s
website.
It will
also have regular meetings with
Head of
the Japan External Trade Organisation office in Hanoi Atsusuke Kawada
suggested Quang Ninh pay attention to Japan’s small- and medium-sized
enterprises present in
He also
noted that Japanese investors often need social infrastructure like schools,
international hospitals and Japanese restaurants in prominent business areas.
At
present, Japanese investments in Quang Ning remain relatively low, ranking
ninth of the nations and territories investing in the locality with 5
projects totalling over 44 million USD.-
The
national flagship carrier Vietnam Airlines has said it received the 2014
silver award for best services at Incheon international airport in the
Eleven
of 90 carriers were selected for the award which aims to recognise active
contributions to Incheon airport’s aviation activities.
Vietnam
Airlines and Singapore Airlines were presented with the same award for
serving over 500,000 passengers annually with high quality services.
Award
recipients must meet a number of criteria such as on-time flights, aviation
safety and quick and effective services.
Quality,
image focus urged for lychee exports
As the
first containers of
Deputy
Minister of Industry and Trade Tran Tuan Anh made this statement at a press
meeting in
Anh
noted that it almost took five to eight years to bring fruits and vegetable
to world markets. Lychee took 14 years to penetrate the two countries, which
have strict quality requirements.
"
However,
he said the main lychee consumption of around 200,000 tonnes this year would
still rely on the local market and export to
The
deputy minister forecast that this year's consumption will be similar or
slightly higher than that of last year.
"One
of the difficult tasks is to improve the quality of our lychee so that they
can surpass certain technical barriers in developed countries," he
noted.
The
ministry will continue taking measures to encourage lychee consumption by
connecting purchasing enterprises with farmers.
Recently,
the ministry tied up with northern Lang Son province to build a 143-ha
transit area with a total investment of 986 billion VND to ease the
accumulation of agricultural products at border gates. The area is also
expected to improve the export of agricultural products, especially seasonal
items.
Underwear
industry boosts the bottom line in Vietnam
Vietnamese
fashion is making a play for the bedroom with new collections of under things
sporting eye catching designs at value prices rapidly filling the shelves of
the nation’s popular discount stores.
They
haven’t made a lot of money yet, but the momentum is shifting from a market
once dominated by foreign brand names to one in which Vietnamese domestic
companies are taking the lead.
The
market has venture investors seeing 50 shades of green with its multi-billion
plus market potential per year in terms of revenue, a spokesperson for a
leading clothing producer in
“Just do
the math the—with a population of 90 million, if one person bought six
products per year, and each sold for VND100,000, the revenue could
potentially hit VND36,000 billion annually.”
At BigC
discount stores, Vietnamese men’s underwear has been selling at prices
ranging VND50,000-300,000 each while women’s bras have been varying from
VND125,000-300,000.
Vietnamese
made products have been value priced, selling at roughly half that of foreign
brands and sales have been steadily on the uptick, a store manager at BigC in
district 10 of
“I feel
more positive about this market,” the manager said, adding that previously we
found it hard to sell foreign brands of women’s bras with much higher prices,
but with the competitive pricing of Vietnamese trendy underwear, sales have
been red hot.
The
Co.op mart in
“Four
years ago, most underwear and lingerie items we sold were from
However,
over the past two years, the number of domestic products has multiplied
substantially, Hoa added and they now account for over 20% of my business
with the balance primarily from
Two
years ago the An Phuoc Garment, Embroidery & Shoes
It’s
very difficult to scale up a business and meet the capital requirements for
facilities and inventory as the company is strapped for cash, a company
representative said – but the demand is there if we can muster the
funds needed.
General
Director of Son Viet Garment Joint Stock Company Ha Xuan Anh said in the
recent four-five years, sales of Made-in-Vietnam underwear and lingerie have
been thriving, particularly with middle-class shoppers.
On the
real low end, Chinese products still dominate the market Anh said.
For
underwear, there are now three-four Vietnamese brands that are most favoured
by men. “Our products account for 30% of the
“Each
month the company produces in excess of 400,000 items,” Anh noted.
Anh said
this year, the company targets to raise its revenue by 150% that of last year
and introduce a new collection of designs and products for children and
pregnant women.
There is
an old saying in the industry that the best way to assess the state of the
economy is to look at underwear sales—and by that measure the temperature of
the Vietnam’s economic well-being looks pretty good.
In spite
of the decrease of international visitors nationwide in the first five months
of the year, international arrivals in
Last
month, there were 301,000 international visitors in the city, up 3.7 per cent
over last year, according to figures released by the HCM City People's
Committee at a meeting last week.
Tourism
revenue in the first five months reached VND39.671 trillion, up 7 per cent
year-on-year.
The
results were due to domestic and international promotions of the city's
tourism sector. Tourism publications in English and Vietnamese, a tourism
map, and tourism call centre (1087) to support visitors also contributed to
the rise in tourist arrivals.
The
city's Department of Tourism said it would focus on upgrading the quality of
tourism products and services, develop waterway tourism, foster art
performances for tourism, and promote
According
to the General Statistics Office, tourists from South Korea increased by 35.3
per cent, Finland 26.5 per cent, Spain 8.4 per cent, Singapore 6.2 per cent,
Italy 4.5 per cent, the US 4 per cent, and Germany 0.4 per cent.
There
were a total of 3,275,191 international arrivals to
Thai Van
Re, director of the city's Department of Planning and Investment, said the
first five months also saw signs of economic recovery.
The index
of industrial production expanded 6 per cent, and the city attracted US$1.06
billion of FDI, up 34 per cent year-on-year.
The city
saw total retail sales of goods and services rise to VND267 trillion, up 10.1
per cent year-on-year and equivalent to 20.5per cent of the country's total.
Its
budget collection reached VND113.72 trillion, accounting for 42.8 per cent of
the year's target, up 4.7 per cent year-on-year.
The
city's export revenue in May reached $2.57 billion, up 7.6 per cent
year-on-year.
However,
exports in the first five months of the year dropped by 8.1 per cent
year-on-year to $11.76 billion.
Top-dog
sales could hurt local markets
The
recent announcement by many executives and major shareholders of listed
companies that they will sell their holdings could rattle smaller investors
and negatively impact the market, analysts say.
A
Securities & Investment magazine's report published last week said Dinh
Hong Long, chairman and CEO of the Ha Noi General Investment Corp (SHN), has
registered to sell his entire holding of 200,000 shares, equivalent to 0.62
per cent of the company's charter capital, between May 27 and June 27.
In a
filing with the Ha Noi Stock Exchange, he said the sale aimed to serve his
personal financial needs. SHN's prices have climbed strongly since March,
more than tripling from VND3,200 (US$0.15) a share early in March to
VND10,300 ($0.47) each yesterday.
The
magazine cited unnamed analysts as saying it was highly unusual and
unreasonable to see a leader sell all of his company's shares when their
prices have been rising consistently of late. They said this move raised
questions about people acting on internal information that only company
leaders are privy to.
SHN is
facing the risk of being de-listed as its cumulative losses until last year
amounted to almost VND327 billion ($15.1 million), exceeding its charter
capital of VND324.5 billion ($15 million). At the same time, Nguyen Hong
Phuong, a board member of the Cuu Long Petro Urban Development &
Investment Co (CCL), also announced the sale of his entire holding of over
1.4 million shares, or 5.64 per cent of the company's charter capital.
Besides company leaders, institutional shareholders of many companies have
also said they will sell their stakes.
The
Vinaphil Infrastructure Investment Co has registered to sell 22.3 million
shares of HCM City Infrastructure Investment Co (CII), equivalent to 11.42
per cent of CII's capital, from June 3 to July 2, just a day after it sold 10
million CII shares. — vns
CII
share prices have increased in recent days and the fact that a big
shareholder like Vinaphil is unloading its entire holdings in it has small
shareholders worried that a price plunge is in the offing.
Claiming
that it is restructuring its portfolio, Blackhorse Enhanced Vietnam Inc. has
said it would sell all its 662.800 shares in Saigon Hotel Corp (SGH); while
Electricity of Vietnam Group (EVN) has registered to offload nearly 11.5
million shares it holds in An Binh Securities Co (ABSC) at a public auction
on June 4.
EVN is a
founding member in ABSC with a 28.93 per cent stake. It expects to raise at
least VND114.8 billion ($5.3 million) at VND10,000 a share.
The
magazine report said there are many reasons for company leaders and
institutional investors to sell their share holdings, but reiterated that the
recent moves are unusual and could have undesirable impacts on share prices
in the short term.
Cooking
gas prices drop in the south
Major
cooking gas businesses in HCM City slashed their prices by VND14,000 (67 US
cents) per 12kg canister on June 1.
Dealers
in other provinces and cities in the country's southern region did the same,
and each canister now costs between VND288,000 and VND288,500 (between $13.70
and $13.73) there, reported Dien Dan Doanh Nghiep (The Business Forum)
online.
A
representative of the Saigon Petro Company reportedly said the decline in
retail prices followed movements in the global market, where the average gas
price for June was down $47.5 per tonne from May.
Ca
Mau dredges estuaries to allow access for boats
Ca Mau
Province plans to dredge several estuaries and build fishing ports to allow
more boats to enter the waterways.
Mai Huu
Chinh, director of the province's Department of Planning and Investment, said
it would develop its fishery sector in two places, the Song Doc estuary in
Song Doc Town and Khanh Hoi estuary in U Minh District.
Chinh
said that more than VND20 billion (US$950,000) would be used for dredging and
building ports and embankments at the two estuaries.
Song Doc
and Khanh Hoi, the two largest estuaries in Ca Mau, have a fishing boat fleet
of 3,000 and 1,200, respectively. The fishing boats at the two estuaries
catch about 100,000 tonnes of fish a year.
Many
large fishing boats at the Khanh Hoi estuary cannot sell their fish at Khanh
Hoi as they cannot travel through the shallow bed of the estuary, which is
silted up.
They
have to travel to other estuaries to sell fish, costing more in transport
fuel and affecting Khanh Hoi's economic development.
Nguyen
Hoan Son, owner of the Hoan Son fish trading establishment at Khanh Hoi, said
most large fishing boats had to travel to Song Doc or other estuaries to sell
fish.
"We
buy fish mostly from small fishing boats which do not have a large quantity
or many kinds of fish," he said.
Lam Van
Phu, deputy chairman of the Song Doc Town People's Committee, said funds in
the past had been used to build infrastructure at Song Doc estuary, including
a boat docking area and fishing port, but it was now overloaded during busy
times when many boats return to the area.
As Song
Doc estuary has not been upgraded for a long time, its port is now in ruins.
The
southernmost province of Ca Mau, with a coastal line of 254km, has more than
4,600 commercial fishing boats.
Villas
in FLC Samson Residences put for sale
Over 300
of 3,000 FLC Residences' villas in the FLC Samson Beach and Golf Resort
complex, central Thanh Hoa Province, were sold in the first sale offer on
June 1.
The sale
offer was held in Sam Son Town in the province.
With the
average price of VND7 billion (US$324,000) each villa, FLC Group, the
investor of the project, was expected to draw VND2.1 trillion (US$97.2
million) from the sale.
Nguyen
Xuan Huong, FLC Group's head of Property Marketing Department, said several
people sought information about the project, with some even wanting to buy
several villas or those with larger areas in comparison with initial
designs.
The
event attracted over 2,000 homebuyers and investors, including people from Ha
Noi and Thanh Hoa Province's neighbouring localities.
The
villas were of 200-500sq.m. each, with a selling price of VND11-15 million
($509-694) per sq.m.
Located
within a complex that boasts of five-star entertainment and culinary
services, the project covers 92.4ha on a total investment of VND1,200 billion
($57.1 million). It is located along the coastline of Quang Cu beach and
includes an 18-hole link style golf course, villas, hotels, and clubs as well
as pools. The golf course was designed by US-based Nicklaus Design firm, who
has been credited with designing nearly 400 golf courses in 36 countries.
It is
expected to become operational in 10 months and will be highlighted as the
group's largest golf course, besides a resort and hotel complex, in central
Viet Nam. Spread out over 450ha, with a total investment of nearly VND5,500
billion ($261.9 million), the complex also has the largest indoor swimming
pool, an international conference centre, restaurants, hotels, spa, and an
indoor play area.
Trinh
Huy Trieu, the chairman of the provincial People's Committee, remarked that
the project has contributed to giving Sam Son Town a face-lift.
On the
occasion, the representatives of the group and Vietinbank's branch in the
province signed a cooperation agreement to arrange capital for FLC so that it
can support homebuyers with preferential interest rate.
Buffalo
Tours awarded TripAdvisor Certificate of Excellence 2015
Buffalo
Tours has been awarded the prestigious TripAdvisor Certificate of
Excellence 2015.
Over the
past year 475 reviews were published on TripAdvisor by customers who
travelled with Buffalo Tours, with 92 per cent rating the service
“Excellent”. The reviews provided feedback on a diverse range of tours and
destinations encompassing the countries in which Buffalo Tours currently
operates.
Managing
director of Buffalo Tours Matt Masson said that, “We are honoured to have
received this prestigious award for the second consecutive year. I would like
to extend my sincere thanks to all of our customers who have trusted Buffalo
Tours to arrange their travel over the past twenty one years.”
“I also
take this opportunity to congratulate the Buffalo Tours’ teams for their
passion and commitment towards achieving outstanding customer service. With
the imminent launch of our Local Life Tour range, our customers will have
even more opportunities to Discover Their Asia,” he added.
Established
in 1994, Buffalo Tours is an established travel services provider with
offices and operations in Vietnam, Cambodia, Laos, Thailand, Myanmar,
Singapore, Malaysia, Indonesia, Japan, China and Hong Kong. The company
offers customised, guided private and group tours, accommodation, transfers,
flights, cruises, day trips and excursions across Asia.
Vietnam
signs contracts to export 3.2 million ton rice
Businesses
have signed contracts to export over 3.28 million tons of rice this year,
reported the Ministry of Agriculture and Rural Development yesterday.
Many
traders have temporarily stopped rice purchase in the Mekong Delta due to
export difficulties (Photo: SGGP)
Of these,
1.7 million tons worth US$738 million have been delivered, down 20 percent in
value and 18 percent in volume over the same period last year.
Rice
export is now facing difficulties with few orders and low prices. Key export
markets of Vietnam including China, Malaysia and Indonesia have halted import
while the condition has not recovered in other markets.
Businesses
and traders have reduced or even stopped rice purchase in the Mekong Delta.
According
to the Cultivation Department, the Mekong Delta has sowed 1.66 million
hectares of summer autumn rice this crop, down over 8,300 hectares over the
same period last year. The reduction is attributed to unstable price which
has caused farmers to convert rice crop into vegetable and fruit farming.
Despite
the department has advised rice growers to seed less than 10 percent of the
IR 50404 variety but the ratio has reached 24 percent. Many farmers have
cultivated without consumption contracts or orders from businesses, signaling
more difficulties in consumption in the upcoming time.
Property
investors advised not to increase prices
The
Vietnam Real Estate Association (VNREA) has called on property investors to
refrain from increasing prices provided that demand picks up in certain
segments and the local real estate market shows more signs of recovery.
VNREA
chairman Nguyen Tran Nam, speaking at the five-day real estate exhibition
Home Expo 2015 that opened in HCMC on Wednesday, said 1,500 housing
transactions have been made via realty trading floors in each of HCMC and
Hanoi in the first five months of this year.
The
former deputy minister of construction added these two major cities saw
successful deals in the first quarter of this year rising by two to three
times compared to the same period last year.
A number
of property investors have adjusted up home prices by 1-10% depending on
project locations to bank on the recovery of the market. However, Nam said
property investors should focus more on long-term sales and marketing plans
to achieve sustainable business growth instead of immediately increasing
prices to maximize profit.
Reality
showed hundreds of property firms with ailing financial capability and
short-term visions went bust in previous years when the property market was
frozen. This is a good lesson for companies in the sector to learn to become
professional and grow business in a sustainable way, Nam said.
Nam
urged property investors to provide clear information about their projects
put up for sale and manage these projects in a professional manner after they
are put into service. This will help enterprises enhance their prestige and
corporate value in the long term.
Nam said
the Government would likely launch a supporting program similar to the
existing VND30-trillion home loan package for commercial housing projects
with apartments sold at less than VND2 billion a unit.
The Home
Export 2015 is attended by major property developers like Hung Thinh, Thuduc
House, Phuc Khang, CityLand, Nam Long and Hoang Anh Saigon.
Hung
Thinh is showcasing a number of new projects including Florita in District 7,
8X Rainbow in Tan Binh District and Melody Residences in Tan Phu District.
Meanwhile, Nam Long brought to the event its E-Home projects with many
promotions.
Thuduc
House unveiled its two new land lot projects Hoa Moc Lan (magnolia) and TDH
in District 9, HCMC.
Many
property companies are introducing apartments and lots with prices of some
VND1 billion (around US$47,000) each at the 2015 Home Expo, Vietnam News
Agency reports.
Le Hoang
Chau, chairman of the HCMC Real Estate Association (HoREA), said the
300-booth exhibition organized by HoREA in partnership with trade promotion
and service firm TPS features housing projects, building materials, interior
furnishing items and banking services.
Firms
worry about Vietnam’s deeper integration
Enterprises
and business associations, speaking at a seminar in Hanoi on May 28,
expressed concern over Vietnam’s deeper integration into the regional and
global economies.
Businesswoman
Nguyen Nga described Vietnam’s intensified integration drive as a house with
too many doors opened at the same time, which allows strong winds to blow
into all the rooms of the house.
“How can
we survive the strong winds? Are we taking risks,” asked Nga, who has been
living in France for 40 years and has a plan to restore Long Bien Bridge in
Hanoi.
She was
replying to a question posed by lawyer Tran Huu Huynh of the Vietnam Chamber
of Commerce and Industry (VCCI), the moderator at the seminar organized by the
chamber. Huynh asked whether Vietnam is so eager and quick to integrate into
the regional and global economies.
Nga said
Vietnam’s production remains weak while workers are only capable of
assembling parts at the most basic stage.
Nguyen
Anh Duong from NDS Project of the development agency ActionAid said Vietnam
seems to be the most fervent country in fulfilling commitments to bilateral
and multilateral free trade agreements.
Dinh Thi
My Loan, chairwoman of the Association of Vietnam Retailers (AVR), said the
local retail sector has got less support from the Government than other
sectors like agriculture, forestry and aquaculture.
According
to Loan, space rentals make up 20-25% of retailers’ total revenues and local
retailers are struggling to survive. “Without the Government’s support,
Vietnamese enterprises will find it tough to compete with foreign retailers,”
she bemoaned.
However,
Tran Huu Thanh, vice chairman and general secretary of the Vietnam Animal
Husbandry Association, held a different view, saying that the automobile
industry has not grown though it has been protected for years while the
telecom sector has grown well in the context of fiercer competition.
“We need
to open the door wide and integrate into the world,” Thanh said, adding that
integration encourages members of his association to work out effective
solutions.
Tong Van
Nga, chairman of the Vietnam Association for Building Materials, shared
Thanh’s view, saying that exports of building materials like cement and glass
have been quite good.
“I
believe we can withstand given the country’s commitments to FTAs,” he said.
Nguyen
Thu Trang, director of the WTO Center at VCCI, said Vietnam will have to
lower and exempt import tariffs as committed to the global trade club WTO and
nine FTAs with foreign partners. However, there are still many technical
barriers regarding food safety, hygiene and anti-dumping.
Vietnam
has not opened all the doors, Trang said.
Trang
said a lot of support for agriculture may be no longer allowed, but the
Government can assist in training and research.
“The
point is many supporting policies do not seem workable… The Government needs
to eliminate business conditions or simplify administrative procedures, and
this is of great help for enterprises,” Trang said.
HCM
City’s retail sales at five-year high
HCMC has
seen total retail sales of goods and services rising to some VND267 trillion
(US$12.27 billion) in the first five months of this year, up 10.1%
year-on-year and equivalent to 20.5% of the country’s total.
Thai Van
Re, director of the city’s Department of Planning and Investment, told a
review meeting on socio-economic development in the city Thursday that if
price factors are excluded, retail sales in the period have hit a five-year
high.
Re said
the January-May retail sales growth is above 9.5% in the same period of 2011,
8% in 2012, 7.7% in 2013 and 7.2% in 2014.
Re said
there are more signs of economic recovery in the city.
He said
the index of industrial production in the year to date has expanded 6% year-on-year,
the highest growth in the same period of 10 previous years.
Tourism
revenue in January-May has edged up 7% against a year-ago period and incoming
remittances have amounted to US$1.7 billion. The number of dissolved
businesses has dropped 5.2% year-on-year.
“These
are good signs for the city’s economy,” Re said.
However,
the city’s exports in the first five months of this year have dropped 8.1%
year-on-year to US$11.76 billion.
Re
attributed declining crude oil shipments to the export revenue fall, saying
that crude oil makes up over 13% of total exports but its export value has
fallen by over 50% in January-May due to the lower oil prices on the world
market.
HCMC
chairman Le Hoang Quan said the city targets the index of industrial
production growth of at least 8% by the end of 2015 and gross domestic
product (GDP) growth of 10% for the whole year.
GSO
to calculate GDP of localities from 2017
The
General Statistics Office (GSO) under the Ministry of Planning and Investment
(MPI) has been assigned to calculate and announce gross regional domestic
product (GRDP) figures of provinces and centrally-governed cities from 2017
as part of a scheme to improve the reliability of statistical figures in
Vietnam.
The
Prime Minister has approved the scheme, which aims to apply international
standards to better the GRDP calculation process and data in order to provide
organizations and individuals with more precise statistical figures about
socio-economic development and other areas.
The
scheme is expected to help standardize the method used to collect data for
the calculation of GRDP based on input statistics, intermediate information
and output results. GRDP calculations will be made with a focus on the total
value of GRDP at current prices and comparative prices, value-added structure
at current prices, and GRDP growth at comparative prices.
This
year, all localities will continue to use the current method to calculate
their GRDP data based on which socio-economic development targets will be
set.
The GSO
will next year coordinate with local statistics offices to compile and
announce GRDP. From 2017, local statistics offices will be responsible for
collecting local data and send it to the agency.
Local
firms can gain easy access to Dubai market
Vietnamese
enterprises can find it easy to enter the Dubai market if they meet certain
requirements, according to a company specializing in trade promotion in
Dubai.
Dinh
Cong Tuan, general director of Vietgate Co., told a recent meeting in HCMC
that importers from the Dubai market require competitive prices and good
quality of Vietnamese goods and Halal certification for food.
Vietgate
has won Dubai-based firms’ orders for Vietnamese products, including thanh
long (dragon fruit), seedless lemon, frozen tuna, shrimp and basa fillets,
Tuan told the meeting between local and Dubai-based enterprises.
Enterprises
in Dubai of the United Arab Emirates (UAE) need to buy around 1,000 tons of
Vietnamese seafood a month.
In
addition to tax incentives, Tuan said Vietnamese companies can use Dubai as a
gateway for to enter other markets in the Middle East.
Sultan
Ali Rashed Lootah from Vault Investments told the Daily on the sidelines of
the meeting that his company and others from Dubai like EPS and Byblos are
visiting Vietnam until this weekend to explore cooperation and investment
opportunities in real estate, car park and hotel sectors.
The
agenda of the delegation includes meetings with leaders in HCMC, Dong Nai,
Hanoi and Kien Giang. They propose investment projects and look for opportunities
in these localities.
Vault
Investments itself wants to develop a smart city featuring a complex of
office and exhibition buildings and other works in the suburbs of HCMC. It
also plans to invest in resort and architectural projects on Phu Quoc Island
to attract tourists as well as high-end complexes in Dong Nai, according to
Lootah.
Vietnam
is a promising place to invest, he added.
Dubai
enterprises are also seeking Vietnamese suppliers of building materials,
wooden products, farm produce, food and trees.
Figures
of the Foreign Investment Agency showed among 103 countries and territories
investing in Vietnam as of April 20 this year, the UAE is the 38th biggest
investor with nine valid projects worth a combined US$135.8 million.
According
to the General Department of Customs, Vietnam exported US$4.62 billion worth
of goods to the UAE last year. Of which, phones and components accounted for
up to US$3.63 billion, followed by electronic devices and components US$247
million and textile-garment US$124 million.
Ca
Mau fertilisers make debut in Cambodian market
The
PetroVietnam Ca Mau Fertiliser Company introduced its fertiliser products to
Cambodia at a ceremony in Phnom Penh on May 28.
Addressing
the event, Cambodian Deputy Prime Minister Men Som On highly praised the
presence of Vietnam’s fertilizers on the market, saying that it will provide
a good chance for Cambodian farmers to choose high quality products at
reasonable prices.
The
Company General Director Bui Minh Tien revealed that the Ca Mau Fertiliser
Plant, with an annual capacity of 800,000 tonnes of urea, is able to meet
both domestic and export demands.
The
company will develop a network of sales agents and distributors and set up a
representative office in Cambodia right after this ceremony, Tien said.
He added
the company has entered into four contracts with its Cambodian partners and
planted a trade representative in the country for products promotion and
distribution.
Vietnam
to be among Ireland’s fastest growing partners
In the
next 15 years, Ireland’s fastest growing trade partners will be Asian
economies like Vietnam, India and Malaysia, unveiled a recent report from
HSBC.
In the
period, the fastest-growing origins of mechandise imports for Ireland will be
China, Vietnam, India and Malaysia, all with an expected export growth of
around 11% each year, said the report released on May 28.
The
report predicted the European country’s external trade outlook as being
“bright”, following the healthy growth of the US and UK along with weaker
euro maintaining momentum of export.
Low oil
prices and improved consumer confidence will contribute to the recovery of
domestic demand, it said.
“As well
as strong export growth and an unfolding recovery in investment levels,
consumer spending should also revive over medium term, as economic conditions
improve and debt levels fall.”
Thus,
HSBC research projects Ireland’s real GDP to be at around 2.8% per annum from
the decade through 2030.
Vinh
Phuc licenses RoK electronics project
The northern
province of Vinh Phuc has granted an investment licence to a company from the
Republic of Korea to produce mobile spare parts and electronic devices for
Samsung.
According
to the management board of the Vinh Phuc Industrial Zone, the Vina Anydo Electronics
Company will implement a US$700,000 project on nearly 2,000 square metres in
the Binh Xuyen Industrial Zone.
The
project is expected to generate an annual revenue of US$16.5 million, and
create jobs for more than 250 local residents, with an average monthly salary
of US$200-US$300.
Vinh
Phuc now hosts 196 foreign direct investment (FDI) projects worth a total of
nearly US$3.3 billion.
HCM
City calls for Korean investment in key fields
Ho Chi
Minh City has appealed to the Republic of Korea (RoK) for investments in
infrastructure modernisation, the support industry, high technology,
personnel development, labour cooperation and environmental protection, the
Saigon Giai phong newspaper reported.
The
southern metropolis is committed to protecting the legitimate rights and
interests of foreign investors and ensuring a stable political and social
environment for businesses to operate effectively and sustainably in the
city, Vice Chairman of the municipal People’s Committee Nguyen Huu Tin said
at a workshop in Busan city on May 28.
He
highlighted the 20-year twin relationship between the two cities, adding that
HCM City is home to more than 320 representative offices run by RoK
companies, with the RoK ranking fourth in terms of foreign direct investment
(FDI) capital in the city.
Vietnamese
trade with the RoK has increased 44-fold over the past two decades.
Furthermore, the recently signed free trade agreement (FTA) between the two
countries has opened up more opportunities for Korean businesses to invest in
Vietnam due to the country’s transparent investment policies.
Deputy
Mayor of Busan Kim Kyu-Ok said around 10 Busan companies are registering to
attend the Machinery Expo in Ho Chi Minh City in July, and the Korean city
will send experts to survey trade activities in HCM City in October.
During
the workshop, the Saigon Trading Group (SATRA) signed a Memorandum of
Understanding (MoU) on a US$1 million contract to import goods from the RoK’s
Elade Co. Ltd.
The
group signed another MoU with Heartychem Corp. on a US$3 million contract to
export sliced cassava, pressed rice husk firewood and consumer goods.
Vice
Chairman Tin granted investment licences to the Tae Kwang Group and Daeyoung
Electronics Company. The former will build a US$39.6 million fertilizer plant
with a capacity of 360,000 tonnes a year, while the latter will invest in a
US$63 million project to produce LED screens and electronic components in the
Vietnamese southern economic hub.
That
same day, Secretary of the HCM City Party Committee Le Thanh Hai and Busan
Mayor Suh Byung Soo held talks to review the 20-year-old friendship between
the two cities.
The
Vietnamese official called upon Busan authorities to persuade more Korean
businesses to invest in HCM City and Vietnam in general, especially in the
support industry, hi-tech agriculture, training, art and cultural exchanges.
He
revealed that the city will open a representative office in Busan to support
business activities.
After
the talks, the two leaders signed off on the 2015-2020 cooperation programme
with comprises a number of important objectives, such as sharing information
on the countries- respective investment climates and business opportunities;
promoting trade; and forging links between urban, public sector and financial
agencies.
Ho Chi
Minh City has established friendly ties with 38 localities around the world,
including Busan one of the most longstanding and effective municipal
collaborations.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 5 tháng 6, 2015
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