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BUSINESS IN BRIEF 20/7
Construction
of Vinh Tan 1 thermal plant underway
The
Ministry of Industry and Trade (MoIT) on July 18 announced the start of work
on the construction of the Vinh Tan 1 thermoelectricity in central Binh Thuan
province.
Built
in the form of BOT ( build-operation-transfer) by two Chinese companies – the
Southern Power Grid Co. and Chinese International Power Co.Ltd.-, and the
Vietnam National Coal – Mineral Industries Holding (Vinacomin) Group, the
plant is due to be completed within 48 months at an estimated cost of more
than 1.75 billion USD.
After
25 years of commercial operation, the plant will be transferred to the
Vietnamese Government.
According
to Head of the MoIT’s general department of energy Dang Huy Cuong, with an
expected annual output of approximately 9.5 billion kWh, the Vinh Tan 1
coal-fired power plant will play an essential role in ensuring electricity
supply in southern
The
plant is among major projects approved in the master plan for the national
grid development through 2020.-
Work
on Phuoc Khanh bridge commences
The
Vietnam Expressway Company (VEC) held a ceremony to break ground on the
Addressing
the ceremony, VEC Deputy Director General Pham Hong Quang said the bridge is
a key component of the Ben Luc-Long Thanh Expressway project.
The
bridge building contract, worth a total of 2.84 trillion VND (132.9 million
USD) is jointly implemented by the VEC and a consortium made up of Japanese
contractor Sumitomo Mitsui Construction and local partner Civil Engineering
Construction Corporation (Cienco 4).
The
The
Ben Luc-Long Thanh Expressway project has a total length of 57.1km running
through Long An province,
With
four lanes, the road is designed for vehicles to run at a maximum speed of
100 kph.
The
expressway includes a total of 20 km of bridges, including the Phuoc Khanh
bridge and the almost 3km-long Binh Khanh bridge spanning
The
first phase of the expressway project will require roughly 1.6 billion USD,
of which 636 million USD is funded by the Asian Development Bank and 635
million USD comes from the Japanese Government via the Japanese International
Cooperation Agency (JICA).
Upon
its completion, the work will help promote socio-economic development in the
southern key economic zone, especially the southeastern region.
It is
also expected to draw investment and boost the development of tourism in
VTC
posts impressive results in the first half of the year
Viet
Nam Multimedia Corporation or Viet Nam Television Corporation (VTC) posted
impressive results in the first half of the year.
The
company's turnover reached VND1.85 trillion (US$85.6 million), representing a
37 per cent year-on-year rise.
Figures
released during a conference held in Ha Noi yesterday to unveil the tasks
before VTC in the second half of the year showed that its profit of VND81.6
billion during the six-month period amounted to 80 per cent of its target for
the entire year.
VTC's
subsidiary, VTC Intecom, contributed the highest turnover of VND1.23 trillion
in the overall result, posting a 49 per cent year-on-year increase. The
company's profit reached VND100 billion, which is much higher than VND27
billion profit it made during the same period last year.
VTC
Digital reported a turnover of VND226 billion and a profit of VND33 billion,
while VTC Media posted a turnover of VND45 billion and a profit of VND2.8
billion.
The
corporation contributed VND222 billion ($10 million) to the State budget,
posting a 54 per cent year-on-year increase and meeting 75 per cent of the
year's target. It paid an average monthly salary of VND14.4 million per
worker.
Dam My
Nghiep, VTC's General Director, said the company's restructuring, to reduce
the number of its units from 49 to eight, had contributed to the results.
Deputy
Minister of Information and Communications Nguyen Thanh Hung hailed the
results, which nearly reached the company's targets for the entire year,
saying that this year could be the most successful of the last three years
for the firm. Hung asked the corporation to focus on completing its planned
tasks during the second half of the year, especially with regard to the VTC
Television division. The company was also urged to link the second phase of
its restructuring to the next five-year development plan. The corporation
should pay attention to domestic and international regulations, especially
the Trans-Pacific Partnership agreement, to develop strategic development
plans, Hung said.
Domestic
firms fail to qualify for Samsung production chain
Vietnamese
businesses still have a low share of just about 10 per cent in Samsung
Electronics' production chain in
The
main reason for this is the limited ability of local firms to ensure quantity,
quality and competitive prices for Samsung.
The
Deputy Minister of Industry and Trade, Tran Tuan Anh, said becoming a
supplier for Samsung would be a significant achievement in terms of improving
the competitiveness of the country's support industry, which has been a key
pillar in the country's industrialisation process.
In the
context of globalisation, the support industry has acted as a foundation on
which the country's development depends since it can decide the production
cost and add value to products, Anh told a conference, held in Ha Noi
yesterday, on the support industry for
Samsung.
Samsung
is one of the big foreign investors in
"However,
the number of Vietnamese suppliers in Samsung's production chain is low as
they have not met the company's requirements. The local enterprises have
joined production segments which have low added value," he said.
Businesses
were not solely responsible for this situation, he said, pointing to a lack
of strong policies, especially a favourable legal framework to enhance the
capacity of firms and create opportunities for them to join the support
industry.
The
deputy minister said it was true that policies regulating the support
industry had not created a breakthrough for local businesses. The ministry
has submitted to the government six draft plans to develop the sector, and is
awaiting approval for these, he said.
"The
ministry will cooperate with Samsung to find capable suppliers," he
added.
Han
Myoungsup, Samsung Viet
He
said four Vietnamese businesses were direct suppliers to Samsung Viet
Last
year, the local suppliers sold spare parts worth US$35 million to Samsung.
The figure is expected to increase to $45 million this year.
Jang
Ho Young, SEV's purchasing manager, said several Vietnamese firms wanted to
work with Samsung, and two companies had been trying to become Level 1
suppliers to the company.
Nine
other firms had the potential to become Level 1 suppliers to Samsung, he
said.
Forty-one
local businesses are expected to become potential partners of SEV, he said.
"Businesses
are required to meet conditions such as having a large scale, high quality,
stable capital and capable leaders to become our suppliers," he added.
Jun
Dea Joo, the South Korean Ambassador to
This
is the second time SEV has organised a conference to seek local suppliers.
Samsung unveiled a list of electronics components the company is seeking from
suppliers, and held direct talks with 200 businesses that want to become its
suppliers.
After
seven years of operation in
Trade
deficit reaches US$3.07 billion in first half of 2015
In the
first half of the year, total export turnover reached US$77.77 billion,
posting a 9.3% year-on-year increase, while the total import turnover was
US$80.84 billion, an increase of 6.7% year on year.
As a
result, there was a US$3.07 billion trade deficit in the first six months of
2015.
The
FDI sector took the lead in terms of import revenue during the period,
reaching US$100.71 billion, an increase of 22% compared to the same period
last year.
Some
products saw an increase in export turnover including garments, textiles,
fruits and vegetables, telephones and spare parts, machinery appliances,
iron, steel and wood.
Vinamilk
tops enterprises with the most varied information in the media
Vinamilk
has led a list compiled by Vietnam Reports on the enterprises receiving the
most favorable media coverage overall.
Based
on an analysis of media reports, the Top 10 enterprises that received the
most positive media exposure from July 2014 to June 2015 were announced by
Vietnam Report, an independent company ranking the services and quality of
companies in
The
Top 10 include Vinamilk (VNM), the Vietnam Insurance Company (BVH), the Bank
for Foreign Trade of Vietnam (VCB), the Hoa Sen Group (HSG), the Hoang Anh
Gia Lai JSC (HAG), the PetroVietnam Fertilizer and Chemicals Corporation
(DPM), the Hoa Phat Group (HPG), the Vingroup JSC (VIC), the Military
Commercial Joint Stock Bank (MBB), and FPT Telecom (FPT).
Vietnam
Report also named enterprises with the most varied information appearing in
the media. VNM led the way, followed by VIC, HAG, DPM, VCB, BVH, HSG, HPG,
FPT and MBB.
Vinamilk
has stood out in the milk industry for years, according to Vietnam Report.
Since its establishment 37 years ago, Vinamilk has developed a reputable
brand in
There
was more positive media exposure for the Top 10 enterprises than negative
exposure. According to Vietnam Report, the enterprises had high
capitalization ratios and liquidity in the stock market and had a great deal
of positive exposure. Secondly, with the stock market performing well, Vietnamese
businesses are in a better position to build a positive image.
The
most discussed topics in the media regarding enterprises were their stock
price, business performance, business strategies, products, and human
resources.
According
to Vietnam Report, the positive exposure for enterprises was mainly regarding
their stock price, which attracts a lot of people’s attention. Meanwhile,
business performance influenced the ability of enterprises to make a profit,
which also attracts positive media exposure.
SMEs
advised to adopt long-term growth plans
Small
and medium sized enterprises (SMEs) should develop long-term strategies,
renew technology and equipment and management, President Truong Tan Sang said
at a meeting with outstanding businesspeople in
The
meeting marked the tenth anniversary of the Association of Small and Medium
Sized Enterprises.
The
President said the association should work harder to attract more enterprises
and involve them in the making of policies concerning them.
He
said the association hosted 90 percent of all businesses in
He
said that the Party and society would always create the best conditions for
SME businesses to grow. He urged the association to help its members access
legal consultation, finance, technological transfer, market information and
copyright.
He
called on enterprises to co-operate better among themselves and with bigger
businesses to make roads into markets where big brands were established.
Cao Sy
Kiem, Chairman of the Association, told President Sang that the association
now extended to 55 provinces and had 52,000 members operating in most economic
realms.
He
said SMEs had been confirmed as one of main drivers of national economic
development, contributing 40 percent to the Gross Domestic Product (GDP), 30
percent of the State budget, 33 percent of total industrial value, 30 percent
of export value and make up half of the nation's workforce.
They
had also helped preserve many of the dwindling traditional craft villages.
ASEAN
market access paper launched
The
European Union-ASEAN Business Council (EU-ABC) has launched a region-wide
position paper of recommendations to boost market access as well as increase
trade and investment between
In a
statement released on July 16, the council said
The
paper mentioned the elimination of non-tariff barriers to trade, highlighting
issues such as cumbersome customs procedures with little harmonisation across
ASEAN and unpredictable application of regulations and procedures, impacting
businesses' ability to make informed long-term investment decisions.
Other
issues include restrictions on foreign ownership and foreign competition and
lack of harmonised standards or lack of mutual recognition of such standards
across the region.
On the
same day, the EU published its latest EU-ASEAN trade and investment
statistics which confirm that the EU is ASEAN's second most important trade
partner after
Between
2004 and 2014, ASEAN-EU trade grew at an annual compound rate of 4.7 percent
with the trade balance in ASEAN's favour, with the EU importing more from the
region than it exports to it.
The
statistics also show that the EU was ASEAN's largest investor with 156
billion EUR in FDI stocks in 2013, accounting for 22 percent of investment
flows into ASEAN, followed by
Environmental
protection at industrial areas specified
Ministry
of Natural Resources and Environment issues Circular on protecting the
environment in economic zones, industrial parks, export processing zones, and
high-tech zones.
Circular
No. 35/2015/TT-BTNMT from the Ministry of Natural Resources and Environment
(MoNRE) was issued recently, on environmental protection at economic zones,
industrial parks, export processing zones, and high-tech zones. The Circular
will take effect on August 17.
In
economic zones, agencies that propose their establishment or expansion must
evaluate the capacity to adapt to environmental requirements and report to
MoNRE and the Ministry of Planning and Investment.
Such
agencies are also responsible for the planning, construction and operation of
environmental protection infrastructure and must send a written notice to
MoNRE so it may monitor and inspect the infrastructure. Environmental
protection infrastructure includes systems for collecting, storing and
processing solid waste, collecting and draining rainwater, and treating
wastewater, observation points to determine the quality of the surrounding
environment, and green areas.
In
industrial parks, export processing zones, and high-tech zones, the planning
of their functional areas must minimize the impact of production pollution
and be able to respond to environmental incidents.
Projects
in these parks and zones must be a safe distance from the surrounding
environment according to national technical regulations for public utilities
and infrastructure to minimize any potential impact on other facilities or
their surroundings.
Technical
infrastructure for environmental protection must be suitable with the type of
investment and minimize any adverse impacts on the surrounding environment.
Green areas must be at least 10 per cent of the total area. Rain water
drainage systems, centralized wastewater treatment systems, storage areas for
solid waste and automated wastewater monitoring systems must be in place.
Environmental protection infrastructure in these parks and zones must follow
technical regulations.
The
Circular also specifically defines the management of waste water, emissions,
noise, solid waste, and hazardous waste, and regulates the prevention of and
response to environment incidents.
$300
million Indian credit for textiles sector
The
Vietnam Textile and Apparel Association (VITAS) has announced that the Indian
Government has officially provided a preferential credit package of $300
million to Vietnam with the aim of promoting cooperation in the field of
textiles between the two countries.
The
$300 million will go to investment projects in the textiles sector with 75
per cent of equipment and services coming from
VITAS
believe the credit package will help Indian companies develop factories in
More
supply to come for HCMC & Hanoi office space
Notably,
growth in the IT, finance, insurance, pharmaceutical/life science and
fast-moving consumer goods sectors is propping up leasing activity.
“There
is expected to be around 715,000 sq m of office space across all grades
coming onto the
In
According
to the report, development activity continues to rise more rapidly in both
cities, which should provide ample space opportunities for their expanding
tenant rosters.
“Growing
availabilities will also continue to fuel a flight to quality in
In
Hanoi, tenants will remain drawn to the lower rates offered in the mid-town
and west sub-markets, while high-quality space in the CBD, still in short
supply, will continue to retain the best tenants.
“Longer
term, the outlook calls for a gradual improvement in the business environment
as the government steps up reforms that should open up more opportunities
across various industries,” the report added.
Hanwha
Life targets to break even in 2017
Hanwha
Life Vietnam has announced that in the first half of the year it recorded
steady growth, with total insurance premium revenue of VND153 billion ($7.03
million), up 56 per cent compared with the same period of 2014.
The
insurer is currently implementing a strategy to expand its network
nationwide. As at June it had 20 sales offices in major cities and 28 offices
in small and medium-sized cities. This year it plans to expand the network to
60 locations around the country.
It
also targets to break even in 2017. According to a representative from Hanwha
Life, the company has advantages in capital support from its parent company
in South Korea, which helped it increase its charter capital to VND1.9
trillion ($87.4 million). “With steady growth over the years Hanwha Life
Along
with goals of expanding and breaking even, this year Hanwha Life also aims to
diversify its product lines and participate in community activities.
Hanwha
Life
Licogi
13 and SaoMai Group to sell additional shares
The
State Securities Commission (SSC) has given Licogi 13 and the Sao Mai Group
permission to sell additional shares.
Licogi
13 will offer 5,568,100 shares with a par value of VND10,000 ($0.46) to
existing shareholders, for a total of VND55.68 billion ($2.55 million).
It
specializes in the construction of foundations and infrastructure, both civil
and industrial. It has been involved in many major national projects, such as
the Ho Chi Minh Mausoleum, T1 Terminal at
The
Sao Mai Group, meanwhile, will offer 112,652,127 shares with a par value of
VND10,000 ($0.46), of which 107,287,740 shares will be offered to existing
shareholders and 5,364,387 stocks offered as the 2014 dividend payment to
these existing shareholders. The total value of the offering is VND1.12
trillion ($51.63 million).
Leather
& footwear makers struggle to compete locally
Asia
Shoes PTE is one of major players in the domestic market but only sells 1
million products a year, or 50 per cent of its manufacturing capacity. As
with many other local producers, it suffers from the fact that the price of
its products are higher than imports.
“Domestic
firms don’t have the opportunity or the need to be dominant in the domestic
market,” said Ms. Van Thuy Hanh, Sales Director in Domestic Markets at Asia
Shoes PTE. “One factor that greatly affects the price is the cost of input
materials.”
The
lack of planning for support industries has also made domestic manufacturers
be passive in supply chains and increasing added value. “We have proposed a
decree on support industries many times but one is still to be introduced,”
said Mr. Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and
Handbag Association (LEFASO). This is at the root of the problems facing
domestic firms, he added.
According
to the Master Plan for Developing Vietnam’s Footwear Industry to 2020 and
Vision to 2025, the industry should have localization ratios of 65 per cent
by the end of 2015 and 80 per cent by 2020. Sectoral planning, especially in
support industries, would be a solution for domestic firms to seize the
opportunities from trade agreements Vietnam has signed or is about to sign.
Phuong
The
Phuong Nam Corporation (PNC) has presented its business results for 2014 to
its shareholders meeting.
Total
revenue in 2014 was VND333.2 billion ($15.24 million), a slight fall compared
to 2013’s VND334.5 billion ($15.34 million). Gross profit was VND127.3
billion ($5.84 million), profit before tax VND2.8 billion ($128,380), and
profit after tax VND2.4 billion ($110,040). In 2013 it recorded a loss of
VND43.6 billion ($2 million) after tax.
The
plan for 2015 is for revenue to reach VND450 billion ($20.63 million), gross
profit VND165.3 billion ($7.58 million) and profit before tax VND10 billion
($458,500). These will be difficult to achieve, according to General Director
Nguyen Huu Hoat.
Regarding
the results at its joint ventures and investments, profit after tax at
Megastar Ltd (where it holds 10 per cent of capital) was VND69.96 billion
($3.21 million), at the Bach Viet Phuong Nam JSC (25 per cent) VND572 billion
($26,226), and at the Book and School Equipment Soc Trang JSC (23.08 per
cent) VND861 billion ($39,476).
Cross
Junction Investment Pte Ltd has lent $7 million to PNG, with $5 million being
transferred on June 26, 2014 and the remaining $2 million transferred on
January 5, 2015.
PNG
operates mainly in the field of cultural production and media. It is also
currently partnering with international firms such as Envoy Media Group (US),
Longman (
BIDV
releases first half results
The
Bank for Investment and Development of Vietnam (BIDV) has announced its
business results for the first half of the year.
Total
assets were VND730 trillion ($33.47 billion), an increase of 25 per cent
against the same period last year and 14 per cent higher than at the
beginning of the year. Profit before tax stood at VND3.01 trillion ($138
million), an increase of 25 per cent compared to the first half of 2014.
Outstanding
credit was nearly VND535 trillion ($24.52 billion), 31 per cent higher
year-on-year and 9.1 per cent more than at the beginning of the year.
Mobilized capital was VND574 trillion ($26.31 billion), an increase of 33 per
cent against the same period last year and up 11.2 per cent since the
beginning of the year.
Its
non-performing loan ratio was 2 per cent, or VND10 trillion ($458.5 million).
Its
credit accounts for 12.7 per cent of credit provided by commercial banks and
its mobilized capital 11.59 per cent of the total.
BIDV
divested from non-core business in the first half, bringing in some VND700
billion ($32.09 million), while its sale of VID Public Bank earned it VND1
trillion ($45.85 million).
After
its merger with the Mekong Housing Bank (MHB) its charter capital was
VND31.48 trillion ($1.44 billion), which is to increase by VND2.69 trillion
($123.33 million) in the time to come.
TPBank
signs two cooperation contracts
TPBank
signed a cooperation contract on July 17 in
Customers
can use all of SCB’s transaction points to deposit cash into their TPBank
accounts. The cooperative arrangement was based on TPBank taking advantage of
SCB’s network and staff.
On the
same day TPBank and the Bao Long Insurance Corporation signed a bancassurance
agreement, where the two form a partnership that allows the latter to sell
its products to the former’s customer base.
In the
first half, TPBank’s total assets increased slightly against the beginning of
the year, to VND52 trillion ($2.38 billion), while mobilized capital and
outstanding credit increased about 10 per cent year-on-year. Profit before
tax was VND342 billion ($15.68 million), representing 112 per cent of the
plan for the first half and accounting for 55 per cent of the annual plan.
CBRE
Vietnam to manage The Pride
Hai
Phat Invest has appointed CBRE Vietnam to cooperate with its subsidiary Hai
Phat PSP to manage its latest project, The Pride, in
CBRE
Vietnam will provide key positions onsite to deliver quality management
services, including customer service, facilities management, maintenance, and
operations, and to help create a peaceful and harmonious environment for
residents and their families.
“We
chose CBRE to manage our flagship project after a competitive bidding
process, because we believed that they have the capabilities and experience
to do a good job,” said Ms. Tran Hoai Anh, Deputy General Director of Hai
Phat Invest. “Also because they showed a strong commitment to understanding
the project and what we are trying to achieve: building a sustainable
community at The Pride.”
According
to the Executive Director of CBRE Vietnam, Mr. Richard Leech, in Vietnam CBRE
manage over 900,000 sq m, in which 500,000 sq m are residential property. “We
give our firm commitment to work closely with Hai Phat Invest, Hai Phat PSP
and the residents of The Pride to create a pleasant environment that allows
residents to enjoy the facilities in the project and take advantage of the
lifestyle offered in western
The
Pride is a mixed-use complex comprising three 35-floor towers and one
45-floor tower, with a total of 1,560 units. To enhance the lifestyles of residents
The Pride is equipped with full facilities, such as a swimming pool, a gym,
and community rooms, among others.
For
added convenience, the project is built on top of a new retail center with
23,000 sq m of space.
Located
at the gateway to western Hanoi in the Ha Dong new urban area and with
convenient road connections to the city, airport and surrounding towns, The
Pride is considered one of Ha Dong’s most prestigious and successful
developments. Upon completion it will be a fully-integrated community where
residents can live, work, and play.
Banks,
property developers clinch guarantee deals
A
number of property developers have got guarantees from commercial banks for
their projects as required by the Law on Real Estate Business, which came
into force on July 1.
Article
56 of the new law regulates that before selling or leasing products at
half-done or future housing development projects, developers must obtain
guarantees from commercial banks as assurances for financial obligations to
their customers.
The
The
company resumed work on the project in Thu Duc District earlier this month to
bank on the recovery of the local property market, Vietnam News Agency
reports.
At the
final sale phase of 117 land lots at its
Real
estate firm TNR Holdings Vietnam has entered into a deal with Maritime Bank
to guarantee its project in HCMC’s District 4 while Novaland Group has got
assurances from VPBank.
Bui
Huu Phuc, director of investment and development at Novaland, was quoted by
Vietnam News Agency as saying that VPBank’s guarantees would enable the group
to make sure its financial obligations to buyers and win customer confidence
in its projects.
Phan
Ngoc Hoa, deputy general director of VPBank, said if Novaland was unable to
hand over apartments to its buyers as pledged while customers asked for
compensation for the delay, the bank would refund the money which the buyer
has paid to the group and other fees clarified in the contracts between the
two parties.
Hoa
noted many developers had put on hold their property projects and failed to
hand over apartments to buyers in accordance with the contracts signed
between the two sides since the local real estate market froze in 2008.
To
attract more buyers, Dat Xanh Group has signed deals with VietinBank and BIDV
to secure guarantees for its real estate projects that would be launched in
the second half of this year, including the high-end apartment project Opal.
Dat
Xanh hailed the law as it safeguards the interests of buyers and ensures the
construction tempo of property projects. The law helps the market develop
sustainably as it kicks ailing property firms out of the market.
Hung
Thinh Corporation has won guarantees from five lenders including VietinBank,
BIDV, Vietbank and Sacombank.
Nguyen
Dinh Trung, chairman and chief executive officer of Hung Thinh Corporation,
said banks would carefully check the financial capability of a property
developer and the liquidity of its projects before agreeing to provide
guarantees for them.
In
addition to their guarantee agreements with banks, real estate firms plan
more housing products targeting expatriates as the revised Housing Law with
effect from early July eases foreign home ownership in
More
FDI flows into IT in Hanoi
The
newly registered capital represented a year-on-year leap of over 93%,
according to an updated report of the municipal Department of Information and
Communications.
Of the
total, foreign firms pledged nearly US$5 million for 23 fresh projects in the
first six months of the year. They included nine projects invested by
Japanese companies, followed by South Korean firms with three projects.
The
department has sent the
Apart
from
At a
recent meeting with a Japanese business delegation,
Viet
also proposed the
More
incentives expected for supporting industries
The
Government is expected to issue a decree providing more incentives for
private firms committed to supporting industries, Deputy Minister of Industry
and Trade Tran Tuan Anh said.
Anh
told a seminar held by Samsung Electronics in Hanoi on July 15 that the
decree with supporting policies for development of industrial clusters and
research, and incentives for enterprises would create a clear legal framework
for Vietnamese and foreign firms to get involved in the nation’s
underdeveloped supporting industries.
Such
supporting policies and incentives are in line with
Small
and medium enterprises will also be assisted in terms of access to
infrastructure and preferential loans, Anh said at the seminar, which was
attended by over 200 representatives of Vietnamese enterprises and government
agencies.
The
ministry, which is in charge of drafting the decree, is pinning high hopes
that supporting industries could attract about 1,000 enterprises after the
decree is issued.
Anh
told the Daily on the sidelines of the seminar that the Government could
issue the decree late this year after six reviews.
According
to Jang Ho Young, purchasing manager at Samsung Electronics, only four
Vietnamese enterprises have clinched direct contracts to supply parts for the
South Korean giant. In addition, 28 other components makers have become suppliers
of Samsung after rigorous selections.
Jang
said many homegrown enterprises have proposed cooperation deals with Samsung
and that their proposals are being weighed.
Combined
revenues of Samsung’s existing suppliers totaled US$35 million last year and
are forecast to reach US$45 million this year, he said.
However,
such sales are insignificant compared to huge revenues of Samsung Electronics
in
Total
revenue of Samsung Electronics in
Han
suggested the Government should financial support and offer more investment
incentives while enterprises need to have a long-term vision if they want to
become suppliers of Samsung.
Han
said Samsung will provide suppliers with technical support.
Han
hoped that close cooperation between the Government, local enterprises and
Samsung would help improve the performance of supporting industries.
Samsung
is the biggest foreign investor in
GENCO
3 promises to solve air pollution at Vinh Tan 2
Power
Generation Corporation 3 (GENCO 3) promised on July 15 to solve the serious
air pollution caused by Vinh Tan 2 thermal power plant in
The
affiliate of Vietnam Electricity Group (EVN) explained in a statement
released on July 15 that the air pollution worsened on July 2 when there was
a problem with the ash pipeline of the power plant’s Generator No. 2. This
resulted in more black smoke emissions.
GENCO
3 said it mobilized all resources and suspended the generator to deal with
the ash pipeline glitch. The problem was solved on July 7 and the
concentration of dust discharged from the smoke stack has since been below
the permissible level.
Therefore,
GENCO 3 asked local residents for sympathy and understanding.
EVN
also called for sympathy and understanding in mid-April after a large number
of local people gathered on
Vinh
Tan 2 consists of two generators with a total designed capacity of 1,233
megawatts and came on steam early this year. The plant is part of
Air
pollution caused by coal ash from the plant has posed a serious environmental
hazard and affected thousands of people in nearby residential areas since the
thermal power facility was put into operation.
Construction
ministry to complete SOE equitization this year
The
Ministry of Construction looks set to realize a target of letting all
State-owned enterprises (SOEs) at its helm go public at the end of this year,
Deputy Minister Le Quang Hung said.
Hung
said in a recent report that seven out of 16 corporations and holding
companies under the ministry have undergone equitization and the remaining
nine would go public between now and the year-end.
The
SOEs subject to equitization toward the year-end are Song Da, Housing and
Urban Development (HUD), Vietnam Machinery Installation Corporation (LILAMA),
Construction Machinery Corporation (COMA), Vietnam National Construction Consultant
Corporation (VNCC), Vietnam Urban and Industrial Zone Development Investment
Corporation (IDICO), Construction Corporation No. 1 (CC1), Building Materials
Corporation No. 1 (FiCO) and Vietnam Cement Industry Corporation (VICEM).
Hung
said the target of equitizing all SOEs within this year is obtainable.
The
revised Enterprise Law, which took effect on July 1, says SOEs are those 100%
owned by the State instead of 51% or above as previously. Therefore, in
addition to the construction ministry, the new law also helps other
ministries complete restructuring and equitization plans for SOEs under their
umbrella.
Experts
are concerned that the corporations would not be able to improve their
corporate governance and continue to enjoy incentives, including supporting
policies and easy access to funds.
According
to the construction ministry’s plans, SOEs under its management will divest
all State capital from non-core business areas at the end of this year.
Bibica
explains VND4.7 billion tax debt
After
the HCMC Tax Department fined Bibica Corporation for missing the tax payment
deadline, the confectionery maker on Tuesday released a statement explaining
its tax debts of over VND4.7 billion incurred in 2009-2012.
Bibica
said the tax debts in the period consist of three components, including over
VND2.5 billion in personal income tax. The company forgot declaring some
incomes of its employees and occasional payments of commissions and
remunerations of its board of directors.
The
company owed over VND1.7 billion in corporate income tax as the tax
department adjusted up collections of interest from a loan lent to Bach Tuyet
Cotton Corporation. Bibica said it has yet to collect interest but the tax
department still took the amount into account as part of the earnings from
its financial activities.
The
tax agency excluded the copyright fee of Lotte Pie as a relevant contract has
not been registered with the Ministry of Industry and Trade. However, it
calculated the corporate income tax differential of interest payments for its
employees when Bibica mobilized their idle funds.
The
final debt of nearly VND466 million resulted from the fact that the tax
department wanted to take back the value-add tax (VAT) deduction from
products the corporation discarded.
Bibica
was slapped with an administrative fine of over VND316 million and a fine of
over VND1.8 billion for late tax payment. The company is required to pay the
fines and unpaid tax within ten days after it got the agency’s notice.
This
year Bibica targets to earn VND1.25 trillion in consolidated revenue and
VND64.2 billion in after-tax profit. The company earned net profit of VND21.4
billion in the first quarter of this year.
Export
prices of Vietnamese rice have dropped on global markets though
According
to oryza.com,
Meanwhile,
rice prices in
According
to some rice exporters in the Mekong Delta, 5% broken rice has been sold at
US$345-355 a ton, down by US$5 against late June.
Lam
Anh Tuan, director of Thinh Phat Co. in
Regarding
official channels, Tuan said as importers have been aware that
Ngo
Ngoc Yen, director of Yen Ngoc rice company in HCMC, said prices of
unprocessed IR 50404 rice in
Statistics
of the Vietnam Food Association (VFA) showed its member enterprises exported
nearly 85,000 tons of rice with a combined free-on-board (FOB) value of over
US$34 million in the first nine days of July. Between January 1 and July 9,
they shipped nearly 2.8 million tons worth US$1.2 billion.
BIDV
posts pre-tax profit of VND3 trillion in H1
The
Bank for Investment and Development of Vietnam (BIDV) on July 15 announced
its pre-tax profit of more than VND3 trillion (US$137.5 million) in the first
six months of this year, up 25% compared to the same period last year.
BIDV
said in a statement that it aims to realize 75% of the year’s pre-tax profit
target by the end of September and meet the whole target approved by its
shareholders.
The
bank’s credit market share reached 12.7% in the period, up 1.1 percentage
points year-on-year, and its market share of capital mobilization was 11.59%,
rising by 1.28 percentage points over the same period last year. Its assets
totaled VND730 trillion (US$33.5 billion), increasing 25% year-on-year and
14% versus early this year.
Outstanding
loans were more than VND535 trillion, rising 31% over a year ago and 9.1%
against early 2015.
The
bank said it mainly lent to borrowers in rural agriculture, export and
supporting industries; small and medium-sized firms; hi-tech applied
enterprises and retail customers. Its bad debt ratio was about 2% and
deposits were VND574 trillion, growing 11.2% from early this year.
Two
member companies of the bank, BIDV Insurance Corporation (BIC) and BIDV
Securities Company (BSC), have been searching for strategic investors, and
BIC has signed an agreement with
BIDV
increased its chartered capital to VND31.48 trillion (US$1.44 billion) after
its merger with the lender MHB earlier this year. The figure will rise by
VND2.69 trillion as approved by the State Bank of
Listed
firms report mixed earnings results
Listed
enterprises reported mixed business results in the first quarter of this
year, with firms on the
Ending
the first quarter, enterprises listed on the Hochiminh Stock Exchange (HOSE)
saw their after-tax profit growing 2.25% against the same period of 2014
whereas the total profit of firms on the Hanoi Stock Exchange (HNX) surged
31.9%.
According
a recent report of HOSE, member enterprises reported revenue rises of 9.05%.
However, enterprises in the VN30 group reported a 9.84% decrease in profit.
Besides,
the return on asset (ROA) of companies on the southern bourse dropped 10.2%
year-on-year and that of VN30 tickers lost around 22.5%. But the return on
equity (ROE) of the entire market increased 2.85% and that of the VN30 group
rose 2.92%.
Explaining
the profit decrease of VN30 companies, Tran Anh Dao, deputy general director
of HOSE, said many listed enterprises raised capital in the first quarter, so
profit indexes (which are calculated based on capital) fell. Besides, net
profit growth of this group also decreased mildly.
Enterprises
in the VN30 basket reported ROA and ROE at 0.62% and 2.92% at the end of the
first quarter. While the combined profit of VN30 enterprises lost 9.84%,
their total assets and equity surged 16.3% and 31.6% respectively.
The
indexes were calculated on data of 184 out of 301 enterprises listed on HOSE.
Meanwhile,
HNX said that 355 out of 362 listed enterprises saw profit surging 31.9%
year-on-year in the first quarter.
According
to a report of HNX, enterprises continued to post better business and production
results than 2014’s first quarter. Aside from positive impacts of the macro
economy, enterprises took measures to cut management costs and focus on core
businesses.
Enterprises
in the report obtained over VND2.99 trillion (US$137.4 million) in after-tax
profit, surging by 31.9%. Of which, 302 profitable companies registered total
net profit of over VND3.1 trillion, up 20.6% year-on-year, while 53 firms
reported total losses at over VND163 billion, falling 53%.
Businesses
in the industrial sector had the most positive results with 100 firms
reporting gains, followed by the finance sector with 25 firms and the fuel
and mining industry with 22 companies.
Among
loss-making firms, the industrial sector made up the largest ratio with 12
enterprises losing VND40.7 billion, followed by finance and construction with
VND39.1 billion and VND38.9 billion respectively.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Chủ Nhật, 19 tháng 7, 2015
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