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BUSINESS IN BRIEF 30/7
AEC
to promote both investment and competition
ASEAN
investment inflows to
After
20 year joining ASEAN,
Currently,
Industry
insiders attributed
Sembcorp
has expanded its investment in
Meanwhile,
Notably,
The
Vietnamese market also witnessed the advent of another Thai retailer -
Central Group. The company bought one of the largest electronics shopping
centre operators in
In
2013, Siam Cement Group (SCG) spent a huge sum on acquiring Prime
Group, a Vietnamese tile manufacturer. SCG also joined the development of the
$4.5 billion Long Son refinery project in Ba Ria-Vung Tau province.
Another
famed Thai firm is Amata, the investor of the Amata industrial park in Bien
Hoa city, located in the southern
Recently,
industry insiders are keeping a close eye on PTT,
It is
forecast that when the ASEAN Economic Community (AEC) is established at the
end of 2015, FDI inflows into ASEAN nations will increase greatly, and
Abundant
liquidity key driver in OMO development
During
the second quarter of 2015, the State Bank of Vietnam (SBV) withdrew large
amounts of funds by issuing bills. At the same time, banks had little demand
for borrowing from the SBV, demonstrated by the limited value of reverse repo
transactions. Ample banking liquidity, limited issuance in the primary bond
market in line with large foreign capital inflows were likely the most
important drivers.
A
total of VND201 trillion ($9.24 billion) of SBV’s bills were issued in the
second quarter, up 14.4 per cent compared to the previous quarter. Meanwhile,
there was only VND39 trillion ($1.81 billion) in reverse repo transaction
value, down 76 per cent compared to the first quarter. So while the SBV net
withdrew money via Open Market Operations (OMO), the outstanding balance of
reverse repo and bill issuance increased throughout the quarter.
The
total transaction value of reverse repos and bills issuance via the OMO in
the first half of 2015 reached VND580 trillion ($26.6 billion), up 5 per cent
compared to the same period last year. Lending volume through reverse repos
was VND202 trillion ($9.3 billion), accounting for 35 per cent of total
volume. Meanwhile, the volume of SBV bills issued in the first six months was
VND377 trillion ($17.3 billion) contributing 65 per cent of total volume.
Abundant
liquidity in the banking system was the key driver for OMO development in the
second quarter. In this regard, it was similar to the interbank market.
First,
the banks’ Tier 1 and Tier 2 capital grew strongly. As of May-end, the
capital of the banking system rose 8.0 per cent from the beginning of this
year, much higher than the growth rate of 2.3 per cent for the same period of
last year. Following the SBV’s request, banks did not pay high dividends and
retained most of their profit in order to raise equity.
Second,
demand for borrowings via OMO as well as the interbank market fell due to a
lower issuing volume of government bonds. In the primary bond market, the
State Treasury (ST) only issued more-than-five-year bonds. As most of the
funds in banks are short-term, their demand for long-term assets was not
significant. Additionally, the winning yields of government bonds did not
meet investor’s satisfaction.
Third,
Circular 36 allows increasing short-term capital for medium and long term
loans. This circular also allows the risk ratios of loans for real estate and
stock investments – which account for the majority of banks’ outstanding
loans – to be reduced from 250 per cent stipulated under Circular 13 to 150
per cent, the lowest levels ever allowed. As a result, banks now can provide
more credit based on the same amount of capital and the same capital
structure. This narrowed the borrowing demand from the SBV as well as in the
interbank market.
Fourth,
the SBV and the government may have purchased a significant amount of foreign
currency during the quarter, although we don’t have an accurate figure for
this at present. Among them were the $1 billion dollar-denominated G-bond
issued to the Vietcombank. Asides from this, in this quarter, foreign
investors were net buyers in the stock market, totalling $228 million; and
net buyers in the bond market, totalling VND1.38 trillion ($63.5 million).
By the
end of the second quarter, bill yields increased slightly compared to last
quarter for almost all tenors. In particular, four-week bill yields reached
3.9 per cent per annum, up 40 bps compared to the yield level by the end of
March. Similarly, the eight-week and 13-week bill also rose 30 bps and 10 bps
respectively to the 4 per cent per annum. In contrast, the yield of two-week
bills dropped sharply from 5 per cent per annum at the first issuance to 3.52
per cent per annum by the end of the second quarter, down 148 bps. 26-week
bill yields remained constant at 4.3 per cent per annum.
In the
last two weeks of June, the ST resumed the offer of short-term bills of 13
weeks and 26 weeks. The SBV therefore stopped issuing the 13-week bills, and
in turn, raised yields of eight-week bills from 3.7 per cent to 4 per cent
per annum, just slightly lower than the winning yields 4.08 to 4.10 per cent
of the ST 13-week bills.
Decree
eases constraints
Following
the relaxation of procedures for foreign investment under the new laws on
Investment and Enterprises, the government has also relaxed the limits for
foreign investment portfolios in a decree.
The
decree also provides for the equitisation of state owned enterprises (SOEs),
and this action is expected to attract more share acquisition in stock
markets soon, as well as private equity. Previously, a foreign investor could
purchase up to 49 per cent of the total shares in a public joint stock
company (JSC) or a listed company. From September 1 2015, this general
restriction will be removed under Decree 60/2015/ND-CP, dated June 26, 2015.
In the
absence of this, new restrictions will be subject to World Trade Organization
commitments or other specific domestic laws. If there is a certain
restriction under domestic law that has yet to be specified, then the rule of
thumb is 49 per cent. When there is no restriction under domestic law (for
example, for production companies, or distribution companies), then there is
no limit for the foreign shareholding ratio. This rule also applies to
equitised SOEs, with the aim of attracting more foreign investment in the
privatisation programme.
As for
securities companies (or investment banking), those who are eligible to
establish 100 per cent foreign owned securities companies are allowed to buy
up to 100 per cent equity of local securities companies. Those who are not
eligible can acquire up to 51 per cent total shares. Decree 60 also lifts all
restrictions on foreign investors in regards to bond investments. With
respect to share certificates or derivative products of JSCs’ stock, the
restriction will be relaxed as mentioned above. For this purpose, open funds
or securities funds that have foreign shareholding at more than 51per cent
equity will be deemed foreign investors.
Decree
60 also addresses a myriad of other issues: the private placement of public
companies, the share swap of public companies, public offering of shares in
public companies for swapping shares in non-public companies, equity in
limited liability companies, private placement filing at the State Securities
Commission (SSC) for public companies, the public offering process, the use
of an escrow account for public offering proceeds, public offering of
investment certificates or shares abroad, redeeming shares, tendering offers,
the sale of treasury shares, the listing of merged or amalgamated companies,
upcom transaction registration and listing, real estate capital valuation,
and contributions to real estate investment funds.
Opening
the door to and creating more options for foreign portfolio investment, along
with the deregulation of various procedures at SSC, are certainly attractive
factors to foreign investors. However, it is unclear how other restrictions
under such different ministries as Health, Education an Training, and
Industry and Trade may impact the government’s intention to open the market.
It should also be noted that Article 74.3 of the Law on Investment allows for
the “non-compliant” restriction of business to be valid until July 1 2016,
suggesting there could be more grounds for more clarification to come.
Seafood
struggles in first half
Vietnam
Customs has revealed that in the first six months seafood export turnover
stood at $3 billion, down 16.3 per cent compared with the first half of 2014.
In June alone exports were down 11.8 per cent year-on-year, to $563.8
million.
Of the
top 15 largest markets in the world, only
In
terms of products, crab and spidercrab saw slight growth in value. Shrimp,
tuna, and tra fish fell sharply, in shrimp’s case by 30 per cent.
Although
the domestic economy is growing at around 6.3 per cent the value of
agricultural, forestry, and fishery has declined considerably compared to
previous years.
In the
remaining six months of the year the government has set a target for the
agriculture sector to earn a profit of VND22 trillion ($1.01 billion) with
the aim of achieving growth of 3.3 per cent for the year as a whole.
Piquing
interest
Mr.
Phan Thanh Hung, a 38-year-old sales and marketing manager in
For a
country ranked among the top in terms of traffic fatalities and injuries,
with 20 people losing their lives and 70 becoming permanently disabled every
day, according to National Traffic Safety Committee figures released in
December 2014, the insurance penetration rate in
Though
first appearing in
With
low insurance penetration and a largely untapped insurance segment,
Recent
figures from the AVI show that life insurance companies are competing
strongly in urban areas, where 30 per cent of the population now resides. It
hasn’t been easy, however, to convince people to take out insurance policies.
Companies have had some success with fruit growers and aquaculture farmers
but have faced challenges in signing on city-dwellers. Life insurers, as a
result, have focused on adopting strategies and products that meet the needs
of urban Vietnamese customers.
AIA
Life, one of the Top 5 in life insurance, introduced a new customer service
model in March in the heart of Ho Chi Minh City that targets busy
city-dwellers.The insurer plans to bring similar one-stop service centers to
Hanoi and other major cities in Vietnam.
ACE
Life, meanwhile, has strengthened its presence in different localities around
the country after opening a new office in Buon Ma Thuot city in the central
highlands
The
preference for purchasing investment-linked insurance has continued to
increase since insurers received MoF approval to provide the products in
2007. “Fubon Life has seen a significant increase in market demand for
investment-linked insurance in recent times,” Mr. Anton Chang, CEO of Fubon
Life
The
life insurance market also witnessed a wave of new products last year based
on
The
ambitious plans of insurance companies, however, may fail to bear fruit
because of shortcomings in human resources. Many new graduates still consider
working as an insurance agent to be a temporary job where they can earn
income while looking for a “real” job. When other opportunities arise, agents
often leave their company, leaving it with the burden and expense of training
fresh agents. The increasing numbers of insurance companies starting out in
Rubber
Exports decrease: General Customs
Ph.d
Dao Ngoc Tien at Trade Foreign University in HCMC said at Rubber sector’s
meeting organized on July 24 in HCMC that rubber exports in the country has
fallen recently.
Rubber
export value in 2015 is estimated to reach US$ 1.7billion, a decrease 4
percent compared to last year. The major reason for the lateness is the
unstable market causing unfavourable conditions for rubber enterprises, said
Mr Tien .
According
to the General Department of Customs, rubber exports in the first 5 months of
this year reached 330,000 tons, accounting US$ 476million, an increase 30.04
percent in volume but a decrease 2.71 percent in value compared to the same
period last year.
The
export value decreases due to rubber export prices cost US$ 1,441 per ton, a
decrease 25.19 percent compared to last year.
Snail-pace
progress puts equitisation target in doubt
In its
update on
At a
July meeting on SOE equitisation, Deputy Prime Minister Vu Van Ninh also
noted, “if ministries, localities and enterprises do not make greater
efforts, the government’s plan of SOE equitisation for 2015, and the whole
period of 2011-2015, will fail.”
Two
weeks ago, the National Steering Committee for Enterprise Renovation and
Development also said
Experts
have pinpointed a series of impediments to equitisation.
“In
addition to complex procedural requirements, implementation of equitisation
is also hampered by subdued demand for some of the assets, especially for
non-controlling shares in SOEs”, said the World Bank’s senior economist
Sebartian Eckardt.
“Implementing
the legal and regulatory framework for SOE management and corporate
governance and increasing the ownership cap for the private sector should
remain key priorities,” he suggested.
Japan
Business Association in
“Whether
strategic investors, even minority shareholders at the start, holding over
50% of shares may run a business or not is a vital point when one considers
his investment options,” he said.
“We
hope the government seriously considers relaxing the restrictions on the
ratio of equity financing in SOEs, and listed and publicly traded companies,”
he stressed.
Echoing
this view, European Chamber of Commerce in Vietnam’s vice chairman Tomaso
Andreatta said the number of shares offered to private investors was often
too small (only 5%-20%) to effectively attract private strategic investment.
“Foreign
investors are usually only interested in buying SOE shares of they can obtain
decision-making power in the enterprise. Instead, the state tends to retain
the power to appoint all or a majority of the board members and SOEs continue
to enjoy preferential treatment when compared to private enterprises.
Furthermore, equitisation often means shares are bought by employees of the
SOE.
“For
these reasons, interest from the foreign private sector to invest in SOEs has
been rather low,” he said.
Ninh
required ministries, localities and state-owned economic groups and
corporations complete the approval of equitisation plans for 44 SOEs and
announce the value of 127 SOEs in the year’s third quarter.
In the
fourth quarter, these 127 SOEs’ equitisation plans must be approved.
SOEs
currently account for about one-third of all business assets, one quarter of
output, and one eighth of employment in the business sector.
VNR, Vingroup
cooperate in rail infrastructure investment
The
Vietnam Railway Corporation (VNR) will cooperate with Vingroup in initiating
steps to invest in the upgrade of railway stations.
This
follows the Transport Ministry's call for investment in the railway sector
from various economic sectors.
In a
statement sent to Vingroup in response to the group's proposal to invest in
upgrading and using
VNR
said it would help in effective utilisation of the railway infrastructure,
while reducing the pressure on the state budget.
Earlier,
Vingroup sent a document to VNR in late June, proposing cooperation in
upgrading rail infrastructure.
Vingroup
has informed the Transport Ministry that it would submit a cooperation plan
with VNR on upgrading Saigon and
The
two sides have discussed measures to ensure the stations operate effectively
and to improve financial efficiency.
Last
week, Vingroup sent a letter to the Transport Ministry, expressing its
interest in investing in a new railway station in the central city of
The
proposed investments in the railways are in response to the government's
policies allowing various economic sectors to invest in the sector to
modernise it, and to ease the burden on public funds.
VNR
said it spent 7 trillion VND (352.58 million USD) in the 2011-15 period to
upgrade the network and introduce new technologies to manage the operations.
By
2020, an estimated 2 trillion (93.02 million USD) more will be needed for
continued implementation of these plans, and 60 trillion VND (2.79 billion
USD) for 12 projects to modernise the main routes.-
During
the period,
The
Vietnam-UK bilateral trade revenue has increased three-fold in the last ten
years from more than 800 GBP in 2005 to almost 3 billion GBP in 2014, shared
Nguyen Thi Hong Thuy, Commercial Counsellor at the embassy while talking with
a Vietnam News Agency correspondent.
However,
apart from apparel and footwear, British consumers are rarely aware of other
made-in-Vietnam products, Thuy noted, recommending that domestic enterprises
carry out more regular market research in the European country.
She
pointed out recent instances of Vietnamese businesses not fulfilling contracts
with their British partners in terms of quantity, quality or schedule.
The
Commercial Counsellor said local agricultural produce constitutes a fraction
of the
The
low figure is due largely to the low activity of Vietnamese enterprises in
the market than in the
She
continued to underscore the positive contribution of the Vietnam-EU free
trade agreement slated to be signed in 2015 to trade between
E-Regulations
likely to improve business
The
launch of an e-Regulations system is viewed by experts and users as a boost
to
The
United Nations Conference on Trade and Development (UNCTAD) conceived
e-Regulations as a tool to help governments make rules and procedures fully
transparent and facilitate business, trade, and investment.
The
Ministry of Planning and Investment's Foreign Investment Agency (FIA)
launched the third phase of the e-Regulations system in June, and it is
available at vietnam.eRegulations.org in English, Japanese and Chinese with
step-by-step guidelines on investment procedures to help foreign investors in
There
is a summary of each procedure, with points such as institutions involved,
expected results, requirements, average duration, and legal justification. At
each step investors can see the contact details of bureaucrats in charge,
forms and requirements, costs, duration, and legal provisions.
FIA
Director Do Nhat Hoang said the system would ease difficulties for investors,
enabling them to navigate
Phan
Khac Nghiem, a lawyer with Minh Long Law Office, told online newspaper Dau tu
that the new system would make it convenient for investors, particularly
foreign investors, to quickly search for information they need.
The
e-Regulations does not only provide general information related to the
establishment of businesses and amending investment certificates but also
give specific information and a step-by-step description of investment
processes and procedures in each participating locality, he said.
More
specifically, investors can get information on rules and procedures through
detailed, practical and up-to-date descriptions of the steps to follow at
each industrial zone, he said.
Luu
Quang Huy, who used to be
Japanese
investors, particularly small- and medium-sized businesses, prefer to use
their own language because many of them are not proficient in English, he
said.
Other
experts praised the system for providing detailed information about each
official in charge of investment procedures, saying pressure to improve the
business and investment environment would now not only be on the Government
but also on officials.
This
pressure is expected to help change the behaviours of officials, they said.
Frank
Gozel, a senior UNCTAD expert and a consultant for creating the
e-Regulations, told the newspaper that the system would provide momentum for
the seven participating localities in improving their business environment.
Investors
can use the system to compare and choose the most favourable investment
destination, he pointed out.
Claude
Jentgen, Charge d'Affaires at the Luxembourg Embassy in
When
investors know what should be done, who they should work with and where, it
would be easier for them to make decisions related to their investment and
business plans, he said.
Moreover,
when the investment process becomes more transparent and open, it would help
to prevent corruption and tackle bottlenecks in administrative procedures, he
added.
Ngo
Hai Phan, Head of the Ministry of Justice's Department of Administrative
Procedures Examination, said localities are willing to provide information
for the system as well as receive feedbacks from investors.
This
means local administrations really want to fix problems to improve their
business environment, he said, adding that investors would surely benefit
from this.
Agriculture
sector’s 7-month exports plunge
Export
turnover earned by the agro-forestry-fishery sector was estimated at 16.93
billion USD in the first seven months of 2015, an annual drop of 3.6 percent,
according to the Ministry of Agriculture and Rural Development.
Earnings
from the export of coffee saw the biggest drop (down 33.7 percent), followed
by aquatic products (down 17 percent), rubber (down 9.2 percent) and rice
(8.3 percent).
In the
reviewed period, a total of 792,000 tonnes of coffee products were exported
thus, gaining 1.63 billion USD but decreasing 33.9 percent in quantity and
33.7 percent in value compared to the same period last year.
The
rubber industry sold 519,000 tonnes of commodities overseas and earned 760 million
USD, representing an annual increase of 13.9 percent in quantity but a drop
of 33.7 percent in value. Rubber prices were reported to climb only in
Exported
rice has undergone a similar downward trend with the quantity and value
reducing annually by 3.1 percent and 8.3, respectively.
On the
contrary, cashew nut and woodwork products have enjoyed a seven-month value
growth of 26.6 percent and 8.3 percent, respectively. Pepper exports also
followed the positive trend.
Lam
Dong holds trans-border economic cooperation conference
The
fourth annual conference on
Co-organised
by the Vietnam Academy of Social Sciences (VASS), the Lao National Social
Sciences Institutes and the Royal Academy of Cambodia , the event aims to
discuss impacts of the ASEAN Economic Community (AEC), border issues and
transnational natural resources on the three countries.
According
to President of the VASS Nguyen Xuan Thang, the countries should strengthen
research studies and dialogues to determine key collaboration and policy
cooperative mechanisms which effectively boost trans-border cooperation,
resolve issues relating to competitiveness competency and poverty reduction
and domestic socio-economic inequality.
Chaleune
Yiapaoheu, President of the
During
the conference, experts expressed concern over opportunities and challenges
in each country as well as cooperation between the three countries when the
AEC is officially formed, particularly on ASEAN’s goods circulation
commitment
On the
other hand, investment activities among the three countries will face
competition from other advanced ASEAN members with the free movement of
capital and investment flows.
A
report by Chheng Vannarith and Som Somuny from the Cambodian academy stressed
the significance of ensuring effective and sustainable trans-border natural
resource exploitation.
Additionally,
Sok Touch, Diector of the Cambodian academy emphasised the significance of
building good neighbourliness, ensuring security and growth and promoting
economic cooperation between
The
northern mountainous province of Bac Kan has disbursed 4.9 million USD of the
5.7 million USD in assistance from non-governmental organisations (NGO) in
the past five years, noted a provincial leader at a recent meeting with a
working group from the Committee for NGO Affairs.
According
to Do Thi Minh Hoa, Vice Chairwoman of the provincial People’s Committee, NGO
aid in 34 projects and programmes has significantly contributed to solving urgent
matters of the locality, benefiting locals and helping fulfil the province’s
socio-economic growth targets.
A
number of infrastructure projects in the locality have helped to improve
local living conditions, she said, adding that the diversity of projects has
raised the level of activity and responsibility of the locality and its
community.
However,
Hoa pointed out that the province is facing a number of problems during the
disbursement, implementation and management of the projects and programmes, including
the lack of sufficient relevant regulations as well as limited capacity in
corresponding capital and human resources.
Moving
forward, she said the province will focus on calling for support in
healthcare, schools, sanitation, disaster relief and environmental
protection.
The
province will continue fostering relations with NGOs operating in the
locality while creating a favourable environment to attract more investment,
said Hoa, adding that Bac Kan also plans to open training courses for local
officials on NGO assistance-related work.
Bac
Giang earns billions of dong from lychee
The
Domestic
consumption accounted for about 55 percent of the 190,000 tonnes harvested,
which was the first time local consumption surpassed exports, said vice
chairman of the provincial People's Committee, Duong Van Thai.
"This
shows the domestic market still has a lot of potential," he added.
This
year was also the first time Luc Ngan lychees have been exported to the
Thai
said that fresh lychees have already sold out, leaving only dried and
processed lychees available until the new season next year.
The VN
index was followed by other international markets such as
The VN
Index on the Ho Chi Minh Stock Exchange (HOSE) gained 7% during that period
to end at 631.26 points by the end of last week.
IndexQ
also reported that the VN Index rose the most in the last three months, with
growth of 11.58% – more than the Chinese and Mongolian markets.
Since
the beginning of the year, the VN Index has grown by 15.7%, which doubled
growth of 8.1% last year and marked the third consecutive year of growth for
Vietnamese securities markets.
This
high growth came after the Government issued Decree 60 on June 26 to increase
foreign ownership in local companies, which then sharply raised the foreign
purchasing value on the stock market.
During
the 20 trading sessions that ended last week, foreign investors were net
buyers in 17 sessions on both local bourses – the Ho Chi Minh Stock Exchange
and Hanoi Stock Exchange.
They
totaled VND2 trillion (US$92.04 million) in net buy value from June 26 to
July 24, including the highest value of VND457.2 billion (US$20.95 million)
on June 26 – the first trading session after the decree was issued.
On
average, foreign investors recorded a daily net buy value of VND100.4 billion
(US$4.6 million) during this period, 2.5 times the value recorded in the
first six months.
Last
week, HOSE marked its fifteenth year of operation, during which increasing
foreign investment has helped improve the status of
By the
end of June, there were 303 companies on HOSE, with a total market
capitalisation of more than VND1,100 trillion (US$500.5 billion), 87 member
securities companies and 1.5 million investors.
Last
year daily transactions performed through HOSE were valued at more than
VND2.1 trillion (US$96.3 million), representing 77%, or the combined figure
of exchanges in
Vietnam
strives to improve its trade statistics for ASEAN
This
is part of a plan for
According
to the plan's general targets towards 2020,
To
achieve these targets,
By
2020, Vietnam Statistics will meet 90% of the demand for figures by the ASEAN
statistics system and the activities and figures of the ASEAN system will
become popular in
The
plan said
Meanwhile,
the main functions of the ASEAN Statistics system include the development of
regional indicators, data frameworks and systems for monitoring the ASEAN
community's goals and initiatives, according to asean.org.
The
functions also include compilation, consolidation, dissemination and
communication of statistical information on the ASEAN region and its member
countries.
To
carry out these functions, ASEAN Statistics will mobilise national
statistical systems and institutions in its member states and assist in
building their relevant statistical capacities.
It
will also monitor and evaluate the implementation of programmes and
activities on ASEAN statistical co-operation.
GSO
Deputy Director Nguyen Van Lieu said measures, staff and information
technology (IT) were the three key factors of a national statistics agency.
IT
will be applied for many statistical activities such as collection,
processing, analysis and forecast. The technology has been used in being
public and keeping in stores for statistical information under a modern
statistics system, he said.
The
system needs a general strategy for developing IT, such as regulations on the
management and operation of the system, IT infrastructure, database and a
skilled IT workforce.
Over
the past few years,
The
statistics of
However,
Generali
Vietnam expands operations in Vietnam
The
Generali Vietnam Life Insurance (GVL) has officially inaugurated its modern
customer service centre and insurance consulting office in the northern city
of
According
to GVL representatives, Hai Phong is an important port city and a centre for
economics, culture, health, education, science, trade and technology in the
northern coastal area.
The
opening of the office in Hai Phong will provide customers with convenient and
professional services and diverse products of Generali
So
far, the company has located consulting offices and customer service centres
in major cities including
Developers
race to spruik properties as
With
foreign ownership of houses and apartments now allowed in
Foreign
property brokers currently join their Vietnamese counterparts in examining
apartment projects which are under development or on sale in the southern
metropolis, as foreigners are now allowed to buy houses and apartments in the
country, following a new rule which took effect on July 1.
While
Salvatore Passari, an Australian broker, visited
Passari
is slated to bring around ten Australian customers to
Another
broker from
Builksol
said around 30 of his customers are eying apartment ownership in
The
Aussie is confident that many foreigners will buy houses and apartments in
the Southeast Asian country, both for living or reselling, as prices are
reasonable and the realty market is growing.
Choi
Seok Hwan, general director of HanViet Invest Co., said many people from the
In the
meantime, Vietnamese realty developers are offering various programs to lure
foreign buyers.
Tuyet
Hang, a salesperson at a realty exchange in District 2, said her company will
grant a round trip ticket to travel to
The
company also offers many other preferential treatments, including allowing
buyers to get a full refund if they want to return their apartment within one
month of purchase, to appeal to foreign homebuyers.
Patrick
Ferneini, a Lebanese customer, examined the project four times before
deciding to place a deposit for a 98.75 square meter, three-bedroom apartment
on July 24, apparently attracted by such incentives.
According
to the new rule, foreign ownership is valid for 50 years, and can be extended
by the same term only once.
A
foreign individual must have a valid passport with an immigration stamp to be
eligible to buy a house or an apartment in
The
documents must be valid at the time a home purchase is conducted.
Nguyen
Trong Ninh, deputy head of the department for housing and realty market
management under the Ministry of Construction, said foreigners only need a
valid visa for immigration to buy houses or apartments in
“Even
a visa with only one day of allowed stay is eligible for house and apartment
purchases,” Ninh told a meeting on July 18.
But
many foreign homebuyers say there are still many issues they find unclear.
Builksol,
the Australian broker, and Nguyen Nhat Hung, the legislative consultant for a
realty project, both said many of their customers are in the dark about what
kind of visas they must have to be eligible for foreign ownership.
“For
instance, is a tourist visa accepted?” Hung asked.
While
it is easy for foreign customers to place a deposit for a project, preparing
and finalizing the purchase contracts is more complicated.
Ardis
Gaetano, an Italian national, said a project developer told him that they
could only prepare the apartment leasing contract for him, as they do not
know how to create a trading contract due to the lack of legal guidance.
“We
have to wait for instructions from a relevant decree and circular regarding
the new law on foreign ownership,” Le Thi Thuy Nga, a salesperson at the
Vietnam’s
chicken imports surge, prices tumble
Imports
of frozen bone-in pork and chicken parts have jumped in the early months of
2015 and are expected to grow by leaps and bounds in coming years, according
to the Ministry of Agriculture and Rural Development (MARD).
Up to
2,432 MT of chicken and 68,100 MT of pork cutlets have entered
Overall
meat shipments saw their strongest upswing after the ministry in mid-May
issued certificates to 106 companies permitting them to import a variety of
red and white meats including beef, pork and poultry, a MARD spokesperson
announced.
The
Vietnam Trade Promotion Agency (Vietrade) in turn reported that EU companies
have set their sights on the
A
Vietrade official said over the past three years, the volume of frozen pork
imported from the EU has escalated seven and a half fold to 6,100 MT, while
beef has leapt six fold to 1,000 MT.
The
Vietnam Economic Times recently quoted a Vietrade official as saying imports
from the EU market are expected to swell even further following the signing
of a free trade agreement between
The
trade agreement with the EU in the offing provides for a concurrent lapse in
import duties, setting the stage for further boosts to meat imports driven by
lower costs to the nation’s importers.
Doan
Xuan Truc, vice chairman of the Vietnam Poultry Association said the rise of
pork and chicken imports – particularly over the past month – has put
tremendous downward pressure on prices to the detriment of the country’s
farmers.
The
price of imported frozen chicken wings and legs have been hovering around
VND21,000, which is approximately equal to one US dollar per kilogram and
half the cost of comparable parts produced by Vietnamese farmers.
However,
Truc cautioned that the quality of some imported chicken is highly suspect
and often at the packaging expiration date due to the lengthy transit time it
takes to ship meat from foreign markets and manoeuvre through administrative
hurdles.
It can
take up to a year to get from the slaughterhouse in a foreign country and to
the supermarket shelves in Vietnam— and one always has to be cognizant of the
risk of repackaging to disguise the true expiration date, Truc underscored.
Truc
added that the price of foreign meat and poultry is oftentimes less expensive
than its domestic counterpart because many cuts that are considered
by-products overseas are considered specialties in
During
a recent conference, MARD Minister Cao Duc Phat expressed his concern about
trade liberalization between
Phat
suggested the most important thing for the country’s smallholders and small
family farms to achieve prosperity is to push quality up, costs down and form
cooperatives or producer associations to provide the link to the global
supply chain.
The
pursuit of export-led growth strategies in
Phat
also suggested that MARD should consider putting technical barriers in place
to control the volume and quality of meat imports to make sure the health of
consumers is adequately protected.
Retail
sales and services turnover were worth VND56.3 trillion (nearly US$2.6
billion) during the month and took the year's total to VND379.8 trillion
(over $17.4 billion), 10.9 per cent up year-on-year.
Without
crude oil, July's exports were worth $2.45 billion, a year-on-year increase
of 1.5 per cent, and for the first seven months, $15.3 billion, up 9.4 per
cent. But with crude oil, exports fell 4.6 per cent to $17.6 billion.
Thai
Van Re, director of the city Department of Planning and Investment, blamed
the decline in exports to the fall in oil prices.
Oil prices
went down by 47.4 per cent on average, Re said.
Industrial
production rose consistently, especially processing and manufacturing.
As of
July 20 the city had issued licenses to 17,191 new businesses with total
registered capital of VND113.4 trillion ($5.2 billion) this year, up by 27.7
per cent in number terms and 46.4 per cent in capital.
The
city also licensed foreign investments worth $2.5 billion, up 2.3 times from
2014.
Tran
Anh Tuan, head of the HCM City Institute for Economic Research and Development,
said the increases in retail sales, investments and exports in July indicate
that the economic growth is stable.
There
is impetus for continued growth in the remaining part of the year, he said.
Addressing
the meeting, People's Committee Chairman Le Hoang Quan said the city would
make efforts to keep inflation down, sustain the economic recovery and
growth, and promote exports and bank lending.
He
called on relevant agencies to better control prices of consumer goods,
improve market management and strengthen the campaigns to fight fake goods
and smuggling.
ASEAN
investments help fuel economic development
Twenty
years after joining the Association of Southeast Asian Nations,
According
to the newspaper, the country has so far lured over 54.6 billion USD from
regional investors, with the majority coming from Singapore, Malaysia, and
Thailand, which respectively rank 3rd, 8th, and 10th among the 103 countries
and territories with investments in Vietnam.
Currently,
Industry
insiders attributed
Sembcorp
has expanded its investment in
Meanwhile,
Notably,
In
addition, Thai giant Berli Jucker (BJC), owned by billionaire Aswin
Techajaroenvikul, announced that it had held a controlling stake in Phu Thai
Group since 2013, and bought stakes in
The
Vietnamese market also witnessed the advent of another Thai retailer -
Central Group. The company bought one of the largest electronics shopping
centre operators in
In
2013, Siam Cement Group (SCG) spent a huge sum on acquiring Prime Group, a
Vietnamese tile manufacturer. SCG also joined the development of the 4.5 billion
USD Long Son refinery project in Ba Ria-Vung Tau province.
Another
famed Thai firm is Amata, the investor of the Amata industrial park in Bien
Hoa city, located in the southern
Recently,
industry insiders are keeping a close eye on PTT,
It is
forecast that when the ASEAN Economic Community (AEC) is established at the
end of 2015, FDI inflows into ASEAN nations will increase greatly, and
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Năm, 30 tháng 7, 2015
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