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BUSINESS IN BRIEF 3/7
Plan
revised for hospital equitisation
Deputy
Prime Minister Vu Van Ninh has directed the Transport Ministry to make
alterations to a plan to equitise Giao Thong (Transport) Hospital before
seeking the Prime Minister's approval.
The
directive follows suggestions by relevant ministries and agencies to improve
the plan, which was proposed by the Transport Ministry three months ago.
Under
the plan, the hospital will sell a part of State-owned capital contribution
and issue bonds to increase its charter capital.
The
hospital's estimated worth is VND158 billion (US$ 7.4 million), which
includes 86
In the
initial public offering (IPO), the State will hold 30 per cent of the
hospital's charter capital, while the hospital's staff will have 8.7 per
cent. Some 30 per cent will be for strategic investors and the remainder 31.3
per cent will be auctioned.
However,
the Finance Ministry has observed that since the hospital operates in the
field of health care and medical treatment, it is not necessary to have
strategic investors own capital worth at least VND1 trillion ($46 million).
A representative
of the Transport Ministry told Dau Tu (Vietnam Investment Review) that the
Finance Ministry's suggestion to provide more opportunities for investors to
become strategic investors will be accepted.
Regarding
the rate of charter capital held by the State, Deputy Minister of Planning
and Investment Dang Huy Dong said under current regulations, there is no need
for the State to hold capital at enterprises in the field of health care.
Also,
under the Enterprise Law issued in 2005 and 2014, holding an enterprise's 30
per cent charter capital will not have much meaning in terms of voting for or
against the important issues of the enterprise, he said.
The
Ministry of Planning and Investment has also proposed the Transport Ministry
to reconsider a proposal to choose T&T Group as a strategic investor
among enterprises registered during the IPO.
Domestic
firms Vingroup, T&T Group, and property developer FLC Group, in addition
to two foreign investors from
The
Transport Ministry should instruct the hospital to sell shares to strategic
investors through an auction among investors to protect the highest interests
of both State and enterprises, Deputy Minister Dong noted.
Meanwhile,
the Planning and Investment Ministry has disapproved the Transport Ministry's
proposal to allocate funds [around VND25 billion ($1.15 million) per year]
from the State budget to pay the hospital's workers for three years after its
equitisation, saying it did not meet the Enterprise Law and will lead to
unfair competition among businesses.
However,
the Health Ministry has supported the proposal, citing it is essential to
continue providing funds for the hospital after its equitisation to prevent
it from changing its investment plan and cutting down on its checkup and
treatment services.
The
seven-storey building, built on nearly 17,000sq.m., has been equipped with
advanced health-care facilities and 200 beds. It was built on the capital
from the OPEC Fund for International Development's official development
assistance.
The
hospital will be the first public health-care centre in
The
Transport Ministry has said it will soon finalise the hospital's equitisation
plan to submit it to the Prime Minister for approval and carry out its IPO in
the third quarter of this year as scheduled.
Quang
Ninh FDI rises to $5.1b
North-eastern
province Quang Ninh has attracted US$5.1 billion in foreign direct investment
(FDI) through 104 projects so far, according to the provincial Department of
Planning and Investment.
The
department said it has managed to attract FDI through flexible policies and a
favourable business environment together with comprehensive and modern
infrastructures.
It noted
that the province granted licences to two new FDI projects in the first half
of the year, with the total register capital reaching $8.3 million.
Investment in no project was stopped, nor was any project revoked.
Most of
the province's existing projects have become operational. Its FDI
disbursement during the January-June period was estimated at $179 million,
with a turnover of $657 million, posting a 38 per cent year-on-year increase.
Its contribution to the State budget rose by 34 per cent from last year.
The
province contacted and worked with 50 business delegations and foreign
investors from
It plans
to grant investment licences to four to six FDI projects in the second half
of the year, while increasing registered capital for five to six others. It
has urged relevant agencies to actively improve the province's business
environment and enhance trade promotional activities.
Last
year, the province granted licences and increased capital for 38 FDI
projects, with the total capital reaching $820 million. Of this, 38 new
projects were granted licences, with $700 million registered capital.
Meanwhile,
several domestic investors have promoted their investments in the province,
especially in the tourism and commerce sectors.
In 2014,
it issued investment licences to 60 domestic investors, with VND25.6 trillion
($1.18 million) in total capital, an increase of 18 per cent in comparison
with 2013.
With 62.16
points, the province ranked 5th in
This
year, it again strives to be in PCI's top five.
Fake
Chinese dietary supplements, pharmaceuticals, cosmetics smuggled into
Fake
Chinese dietary supplements, pharmaceuticals, and cosmetics have been
smuggled into
They
have been illegally transported in bulk in a more sophisticated way than
before, the National Steering Committee on Combating Smuggling, Commercial
Fraud, and Counterfeit Goods (Steering Committee 389) said during the event in
Hoi An City in the central region.
However,
the Steering Committee 389 did not give any details about the volume of fake
Chinese dietary supplements, pharmaceuticals, and cosmetics imported into
Many
Vietnamese enterprises have registered their brand names identical to
existing protected trademarks to deceive consumers into buying their fake
dietary supplements, pharmaceuticals, and cosmetics, the committee said.
Those
local firms mainly outsource their products, labels, and packages from
Chinese manufacturing facilities, and then smuggle the goods into
The
Steering Committee 389 has discovered a local firm storing 80 kinds of labels
and packages for dietary supplements printed in
In May,
Steering Committee 389 data showed that
In the
first five months of this year, with nearly 500 registered local importers,
the value of the dietary supplements brought into Vietnam from many sources,
including China, topped VND1.4 trillion ($64.4 million).
Danish
energy efficiency investments to benefit SMEs
The
Danish Embassy last week signed agreements with three leading Vietnamese
banks to support energy efficiency investments among small and medium-sized
enterprises in
Under
the agreements, the three lenders, namely the Joint Stock Commercial Bank for
Investment and Development of Vietnam (BIDV), Sai Gon Joint Stock Commercial
Bank (SCB) and Vietnam Technological and Commercial Joint Stock Bank
(Techcombank), will provide loans for small and medium-sized enterprises
(SMEs) operating in the brick, ceramic and food processing industries to
carry out energy efficiency initiatives with support from the Danish Green
Investment Fund (GIF).
Addressing
the signing ceremony, Danish Ambassador to Vietnam John Nielsen stated that
taking the lead in the global promotion of green growth,
Nguyen
Viet Son, deputy director general of the General Department of Energy under
the Ministry of Industry and Trade, told VIR that Denmark's support would not
only help improve the standards on energy efficiency in the private sector
but also promote such investments among powerful groups.
Over the
past five years,
The GIF
was established from the initial investment of $6.5 million, following a
memorandum of understanding in June 2014, and has been constantly and
actively seeking to benefit Vietnamese SMEs.
Nielsen
hopes that through the GIF, Denmark will support 100-130 projects by the end
of 2016.
Post-FTA
export import should not repeat WTO scenario
Recently
signed free trade agreements (FTA) between Vietnam and South Korea and the
Eurasian Economic Union are expected to be good opportunity for export
promotion. However there is a long distance from expectation to reality,
requiring both authorized agencies and businesses to quickly solve related
issues to prevent WTO scenario from reoccurring.
Vietnam’s
WTO membership was supposed to vigorously boost exports. However, the
Ministry of Planning and Investment has reported that five years after the
WTO entrance, the country’s economy was inferior to that in the previous five
years in many fields including Gross Domestic Product growth rate, growth
quality and export import.
Export
turnover increased but the growth mainly came from Foreign Direct Investment
(FDI) sector. It reached 33.5 percent for FDI sector and only 1.3 percent for
domestic sector in 2012.
The
condition has not changed after Vietnam signed FTAs. FDI exports
continued growing strongly.
The
total export turnover was estimated to touch US$13.5 billion in May, up 1.1
percent over the previous month. Of these, domestic sector grew 3.5 percent
to obtain US$4.1 billion while FDI sector grew 0.2 percent to hit US$9.4
billion.
May
export turnover hiked 9 percent over the same period last year. The growth
rate was 1 percent for local sector and 12.8 percent for FDI sector.
In the
first five months this year, the export turnover was recorded at US$63.2
percent, up 7.3 percent over a year ago. Of these, local businesses saw a
reduction of 2.7 percent to US$18.8 billion, FDI sector posted an increase of
12.2 percent to reap US$44.4 billion.
The
concern is that the import turnover of local businesses has been higher than
foreign firms.
May
trade deficit was US$900 million taking the total to US$3 billion equivalent
to 4.7 percent of total export turnover in the first five months this year.
Domestic economic sector created a trade deficit of US$7.7 billion while FDI
sector posted a trade surplus of US$4.7 billion.
It is
likely that Vietnamese businesses’ imports have been easier than that before
FTAs were signed. At first sight, it will benefit consumers because of price
drop thanks to tax cut. However from a farer-reaching sight, import
acceleration might kill local production.
The
Government’s efforts in FTA negotiations and signing aim to help local
businesses develop production and boost exports to improve their
competitiveness in regional and global scales. However this target has been
fully taken advantage of by FDI sector not Vietnamese firms.
According
to a survey by English Newspaper The Economist, the use ratio of FTA
incentives of Vietnamese businesses is rather low at only 37 percent.
When
being asked about the issue’s cause, 52 percent companies attributed it to
complex negotiations, 40 percent said unattractive market, 38 percent
believed benefits insufficient to make up for difficulties in exploiting
these incentives, 50 percent said FTA information insufficiently announced.
Handicraft
and Wood Industry Association of Ho Chi Minh City (HAWA) Chairman Huynh Van
Hanh said that although FTA contents directly affected businesses, those in
charge of negotiations said negotiated contents should be kept silent.
For
instance, while the American Chamber of Commerce in Vietnam invited
businesses to talk about the Trans-Pacific Partnership agreement, Vietnamese
officials said it secret and unable to reveal any thing.
Only the
May signed Europe-Asian Business Alliance was consulted businesses. Other
FTAs have been announced to them after being signed.
Many businesses
at a recently hosted seminar expressed concerns over the Vietnam-South Korea
FTA signed on May 5 saying they have been accessible to the agreement in
Vietnamese too late while Korean businesses have got a Korean textbook on the
FTA agreement since it was initialed.
Many
seminars on FTAs have been organized. However, most of them just provided
general not specific information. Contents of the seminars should be changed
to detail the agreements’ information to businesses.
Policies
should not be issued suddenly. Therefore, authorized agencies should consult
businesses in negotiating and signing FTAs. Tariff, non-tariff, intellectual
property and environment should be discussed publicly and transparently for
enterprises to have preparations, said lawyer Tran Huu Huynh, chairman of the
International Trade Advisory Committee under the Vietnam Chamber of Commerce
and Industry.
The
Government has tasked the Ministry of Industry and Trade to work with other
ministries to propagandize international integration commitments from FTAs to
businesses, Minister Vu Huy Hoang told the press recently.
However,
that work has been implemented without results as expectations, causing
businesses’ little acknowledge of the matter. The ministry needs close
coordination from other ministries especially information and communications
agencies to better the propaganda, he said.
Of
course it is impossible to only blame authorized agencies for businesses’
weak acknowledge of FTA. This is partly because the firms themselves have
been passive in catching information as well as improving their goods quality
to meet importers’ demand.
More
FTAs will be signed this year. It is time to help businesses improve their
knowledge and goods quality to take advantage of opportunities from the agreements.
Businesses
themselves should take more initiatives to find out information related to
their fields and closely work with importers to catch up with import markets’
regulations for export promotion.
Property
bubble?
The
property market has shown signs of a steady recovery as affirmed by Minister
of Planning and Investment Bui Quang Vinh but risks are in sight.
Vinh was
cited by the local news site VnExpress as saying that concern about property
market imbalances was heard at the first half review meeting of leaders of
the ministries of finance, industry-trade and planning-investment and the
central bank in Hanoi last week as January-May real estate loans rose by
nearly 11% and doubled the nation’s average credit growth in the period.
More
bank loans for property projects have backed a recovery of the property
market this year. Notably, the sector has become the second most attractive
to foreign investors in the first half of the year after
processing-manufacturing, with over US$465 million registered for new and
operational realty projects.
Efforts
of government agencies to revitalize the property market after years of
stagnation have paid off as the sector is expected to contribute much to
gross domestic product growth, which the General Statistics Office last
Friday put at 6.28%, instead of the 6.11% released two days earlier by the
Ministry of Planning and Investment.
Vinh
stressed the need to keep a close watch on the market as a real estate bubble
might recur and huge real estate loans could send bad debt in the banking
system soaring as a result.
There is
reason to worry as Vinh is not the first person to issue such a warning.
Speaking at a seminar in HCMC last month, Vo Tri Thanh, vice president of the
Central Institute for Economic Management (CIEM), warned of a possible real
estate bubble as the market is still facing macro-economic risks such as slow
settlement of bad debt in the banking sector.
In
recent times, property developers have poured money into luxury housing
projects to bank on homebuyer confidence in the market while many low-income
earners are still struggling to find a dream home. This perennial
supply-and-demand imbalance is one of the problems that plagued the property
market in previous years.
Farm
exports drop on sagging prices
Farm
export revenues in the first half of this year dipped nearly 3% year-on-year
to US$14.42 billion due to falling prices of Vietnam’s major agro-products,
according to the latest report of the Ministry of Agriculture and Rural
Development.
The
country shipped abroad over three million tons of rice worth some US$1.32
billion in January-June, down over 6% in volume and 10.5% in value compared
to the same period of 2014. The average export price of this product stood at
over US$435 per ton in the first five months of the year, down around 4%
year-on-year due partly to the decline of export prices to China.
The
northern neighbor accounted for 36% of Vietnam’s total rice export volume in
the first half.
Meanwhile,
Vietnam shipped 687,000 tons of coffee worth US$1.42 billion in January-June,
down nearly 36% in volume and over 35% in value versus a year ago. Seafood
exports were sluggish too as they fell 16% year-on-year to nearly US$3
billion in the first half.
Rubber
exports expanded 22% to 422,000 tons of rubber but their revenue edged down
5% to US$614 million.
In
contrast, cashew and pepper exports fared well thanks to higher price and
volume. Vietnam shipped abroad 150,000 tons of cashew and obtained some US$1.1
billion in revenue in the first half, rising 14% in volume and over 28% in
value as the average export price of cashew nuts amounted to US$7,080 a ton
in January-May, jumping nearly 12% from a year ago.
Pepper
export price climbed 32% to US$9,233 a ton in the first five months, which
was attributed to a rise of 6% in the product’s export value at US$833
million although its volume went down 18% to 90,000 tons.
However,
as the two items are not key export earners, the surge of their export
revenue could not offset the decline of other agro-products, which sent total
export value in the first half tumbling.
50,000
coffee farmers backed to better use water
Nestlé
and partners will support around 50,000 farmers in five Central Highlands
provinces to better manage water resources for coffee farming to cushion
impact of natural disasters and climate change.
Nestlé
will carry out the project “More coffee with less water - towards a reduction
of the blue water footprint in coffee production” in Daklak, Dak Nong, Gia
Lai, Kon Tum and Lam Dong provinces in coordination with the Swiss Agency for
Development and Cooperation (SDC), Germany-based EDE and Vietnamese partners.
The
project was launched in April and will run over five years after a pilot
model was developed for the region, according to Nestlé.
The
project aims to enhance the water management capacity for farmers via studies
on water resources and demand, set up an early warning system for weather
conditions to help farmers optimize farming, and provide training on good
agricultural practices (GAP) and efficient watering for 50,000 farmers.
This
year, the project will provide courses for 30 trainers and 2,000 farmers and
help establish six trial models on sustainable coffee production with
efficient watering in every province of the project.
A study
sponsored by Nestlé showed farmers use around 60% more than the water volume
needed to water their plants in dry season, from December to April.
According
to experts, farmers use 700-1,000 liters of water on average for coffee
farming while the volume coffee trees need to produce yields is just 300-400
liters.
Consortium
keen on Thu Thiem 4 bridge
A
consortium comprising three local companies has proposed building a fourth
bridge that connects to the planned Thu Thiem new urban area.
The
consortium of Phat Dat Real Estate Development Corporation, Infrastructure
Development and Investment Corporation 620 and Construction Development
Investment JSC 168 wants to implement the project under the build-transfer
(BT) format.
The
government of HCMC will pay for the bridge by allocating land in functional
sections 3 and 4 in Thu Thiem New Urban Area to the consortium.
The
forthcoming bridge will link Thu Thiem and Saigon South New Urban Area.
According
to the zoning plan, Thu Thiem New Urban Area will cover 657 hectares on the
left side of the Saigon River, have financial, commercial, service, science
and recreational centers for around 160,000 local residents and create jobs
for some 450,000 people.
Covering
the areas of districts 7, 8 and Binh Chanh, Saigon South New Urban Area is
home to State administrative agencies, commercial centers and entertainment
and technology facilities. It is being developed on some 2,975 hectares for a
population of 500,000 people and around Nguyen Van Linh Parkway.
The
consortium said Thu Thiem 4 bridge would create a traffic link between the
southern and eastern parts of HCMC.
The
bridge is planned to go up at a site which is some 1.1 kilometers from Thu
Thiem 3 bridge and intersect Tan Thuan Port in District 7.
Food,
fisheries exports decline
Viet Nam
saw a 2.8 per cent year-on-year reduction in the export value of
agricultural, fish-eries, and forestry products to record US$14.42 billion
during the first half of 2015.
This
includes $2.6 billion recorded in June, said the Ministry of Agriculture and
Rural Development.
The
value of agricultural exports in the first six months declined by 5.7 per
cent to $6.93 billion and that of fisheries products fell by 16 per cent to
$2.97 billion, particularly on the US market, compared with the same period
last year.
However,
the export value of forestry products gained year-on-year by 8 per cent to
$3.29 million in the first half of this year.
During
the period, rice exports reduced in both volume and value at 6.2 per cent and
10.5 per cent, respectively, to 3 million and $1.3 billion, respectively,
compared with the same period last year.
China
was still the largest export market of Vietnamese rice, accounting for 36 per
cent of the total rice export value, the ministry said.
But the
rice exports to China dropped 19.6 per cent in volume and 22.6 per cent in
value during the first half of this year against the same period last year.
Coffee
exports also fell 35.8 per cent in volume to 687,000 tonnes and 35 per cent
in value to $1.42 billion in comparison with the first half of last year.
Germany and the United States continued as the two largest export markets of
Vietnamese coffee in the first six months.
The
other products such as tea and rubber saw a similar trend during the first
half of the year.
Pepper,
cashew nuts, and cassava exports achieved growth in export value in the first
half of the year.
Cassava
marked a year-on-year increase of 42.6 per cent to $844 million, while cashew
rose 28.2 per cent to $1.08 billion, and pepper registered 6.1 per cent
growth to $838 million.
Vietnamese
lychees much sought after in Australia
A
Vietnamese Lychee Day was held in Thien Loan supermarket in Melbourne, Australia
on June 29. There, 300kg of lychees were sold out in one hour.
The
event, co-organized by Vietnam Trade Office and the Vietnamese Business
Association in Australia, aims to boost sales of Vietnamese lychees in the
world market.
One kilo
of lychees was sold at AUD14.99 (equivalent to VND250,500) during the event.
Nguyen
Thi Hoang Thuy, representative of Vietnam Trade Office in Australia, said
that this is the first time Vietnamese fresh lychees are sold in Australia
and since June 12, many tonnes of Vietnamese lychees have been sold out.
Vietnam
Trade Office was planning to organize other events to promote the sales of
Vietnamese lychees in Australia, Thuy added.
Vinh
Long sees increase in social investment capital
The
Mekong Delta province of Vinh Long drew a total social investment capital of
VND5.335 trillion (US$244 million) in the first six months of 2015, up 8.8%
from the same period last year.
Of the
figure, non-State capital increased 10% and foreign direct investment capital
increased 44%.
The
province has nine newly-registered projects with VND649 billion (US$30
million) in total capital focusing on agro-products and food processing,
commerce and business.
Another
113 enterprises were established, bringing the total number of businesses operating
in the province to 3,915 with a combined capital of VND18.5 trillion (US$850
million).
The
encouraging results are attributed to provincial efforts to create a
coordination mechanism among sectors and localities to cut down red tape.
Dialogues
with enterprises were organised to address any emerging issues in a timely
fashion.
The
province also encouraged enterprises to invest in key sectors such seafood
processing, rural infrastructure and commerce.
The
one-stop-shop mechanism between the Department of Planning and Investment and
the management board of industrial zones or between the Public Security and
the Tax Department were established.
The
province also published 77 new administrative procedures, revised eight
procedures and removed 73 procedures to increase transparency and draw
investors.Of the figure, non-State capital increased 10% and foreign direct
investment capital increased 44%.
The
province has nine newly-registered projects with VND649 billion (US$30
million) in total capital focusing on agro-products and food processing,
commerce and business.
Another
113 enterprises were established, bringing the total number of businesses
operating in the province to 3,915 with a combined capital of VND18.5
trillion (US$850 million).
The encouraging
results are attributed to provincial efforts to create a coordination
mechanism among sectors and localities to cut down red tape.
Dialogues
with enterprises were organised to address any emerging issues in a timely
fashion.
The
province also encouraged enterprises to invest in key sectors such seafood
processing, rural infrastructure and commerce.
The
one-stop-shop mechanism between the Department of Planning and Investment and
the management board of industrial zones or between the Public Security and
the Tax Department were established.
The
province also published 77 new administrative procedures, revised eight
procedures and removed 73 procedures to increase transparency and draw
investors.
Purchasing
power rises due to macro recovery, low CPI
The
purchasing power of Vietnam posted a four-year high in the first half of this
year due to low inflation.
According
to the General Statistics Office (GSO), the total retail sales of goods and
services reached US$73.121 billion, rising by 9.8% over the same period last
year, or 8.3% if inflation is excluded.
By
comparison, the growth rates of total retail sales were 5.7%, 4.9% and 6.5%
in the same period for 2014, 2013 and 2012, respectively.
Retail
sales of goods contributed 75% of the total retail sales, with a value of
US$55.532 billion, increasing by 10.6%. Retail sales of accommodation,
restaurant and catering services each posted growth of between 5.9% and 9.7%.
However,
retail sales in the tourism sector declined 6.1% over the same period last
year, partly due to poor service quality.
Purchasing
power was one of the indicators which reflected the macroeconomic recoveries
in the first half of this year.
This was
a result of the government's policies which aimed to stabilise and restore
the nation's economic growth, even though the global economy had not shown a
stable recovery and had instead continued to suffer financial chaos, currency
fluctuations and plunging commodity prices.
According
to GSO's General Director Nguyen Bich Lam, the purchasing power recovered
thanks to the low consumer price index (CPI), reported at 0.55% – the lowest
level achieved over the past 14 years. Consumers gained benefits from the
quantity of goods and services controlled by the low CPI .
Lam
pointed out that in Vietnam, although inflation was controlled at a low
level, aggregated demand remained at a high level.
Buyers
line up for Lotus Residences townhouses
Buyers
have paid deposits for about 70 per cent of Van Lien's (Lotus Residences)
townhouses that were put on the first sale on June 28, project investor BIM
Group said.
Syrena
Viet Nam Sales Manager Pham Van Nam introduces Lotus Residences at the sale
release on June 28. Photo BIM Group/ Syrena Viet Nam
Lotus
Residences is located in the prime Halong Marina Urban Area with 159 luxury
townhouses, offering a good opportunity for those seeking a townhouse along
Ha Long beach.
The
commercial and resort project has good transport connections with
neighbouring areas such as Halong Marina Plaza, Bai Chay Beach and Tuan Chau
Complex.
Lotus
Residences' townhouses will have modern and environment-friendly designs,
with a view of the sea, together with prominent utilities such as all-season
swimming pools, modern gyms and green parks and playgrounds, promising
high-end living standards for residents.
The
project is expected to be completed in the third quarter of 2016, after 14
months of construction.
The
promise of profits has also made Lotus Residences look appealing to buyers,
given the great tourism development potential of Ha Long City in particular,
and of the northern Quang Ninh Province in general.
For the
first time in Ha Long City, a rental pool system in which the involved
parties can share rental income from a property with the aim of optimising
profits for the owners will be implemented at Lotus Residences.
The BIM
Group pledges a maximum combined profit of VND600 million (US$27,700) during
the first two years of the operation of townhouses in Lotus Residences, for
those joining the rental pool, and 65 per cent of the rental profits from the
third year.
Interior
decoration packages at preferential prices starting from VND200 million
($9,180) will also be provided to owners of townhouses who join the rental
pool programme.
Lotus
Residences and Little Vietnam – the project featuring the country's most
original architectural styles – are expected to create a bustling commercial,
cultural and tourist destination in Ha Long City.
Lotus
Residences and Little Vietnam are among high-profile projects of the BIM
Group, which has developed a diverse portfolio of residential, commercial and
resort projects in Ha Long, Phu Quoc and Lao.
Tourism
and property development are among three major businesses of the BIM Group,
which also offers agricultural, food and commercial services.
Resolution
to improve business climate shows initial success
The
implementation of Government Resolution 19/NQ-CP on improving business
environment and national competitiveness between 2015 and 2016 has shown
encouraging outcomes in the first half of this year, said Minister of
Planning and Investment Bui Quang Vinh at the regular cabinet meeting held in
Hanoi on June 29.
Specifically,
the registration time for business licences has been cut to three days, just
half of the set goal of six days while time spent on business initiation
procedures was reduced from 34 days to 17 days. As a result, Vietnam is
expected to leap 72 places to 37 in the national competitiveness ranking in
terms of start-up business criteria – much higher than the average level of
the ASEAN-6 (including Indonesia, Malaysia, the Philippines, Singapore,
Thailand and Vietnam).
The
investor protection indicator increased to 6.2 points from 3.33 thanks to
reforms of the 2014 Law on Enterprises. With this outcome, Vietnam will move
up 105 places to 52, meeting the average level of ASEAN-6 as set by the
resolution.
In 2014
and early 2015, the time required for paying taxes was reduced by 380 hours
(from 537 hours per year to 157 hours per year) and is set to be cut by an
additional 35.5 hours to meet the resolution’s target.
The
procedure for social insurance payments has been slashed by 100 hours (from
335 hours per year to 235 hours per year), which is still a long way from the
target of 49.5 hours per year.
The
total time for tax and social insurance payments is expected to drop by 480
hours, helping the country rise 27 places to 122, which is far below the
average level of ASEAN-6 (ranked 67 th).
The
Ministry of Industry and Trade and the Electricity of Vietnam have issued
documents to reduce the time needed to access electricity, which has been cut
from 115 days to 85 days and will undergo additional simplification to reach
the resolution’s set target of 70 days.
Pertaining
to cross-border trade transaction, the Ministry of Finance and the General
Department of Customs have reviewed and adjusted relevant policies to address
customs procedures for businesses.
Yet
Minister Vinh described this as the responsibility of not only the Ministry
of Finance and the General Department of Customs but also of related
ministries and agencies.
The
resolution, dated March 12, 2015, requested ministries, agencies and
localities to focus on consistent and effective implementation of key tasks
and solutions to improve the business climate and national competitive
capacity.
The
involved parties ought to implement the resolution more effectively and
address shortcomings in import-export quarantine and customs declaration in
particular.
Chaotic
reality of dietary supplement industry
Soon
after investigation police in Ho Chi Minh City arrested Nguyen Duy Bao,
director of Bao Khang Im-Export Company in Go Vap District for selling fake
nutritional supplements in bulk quantity, public concern was raised for
chaotic reality of the nutritional supplement industry.
Among
fake nutritional supplements were seized, many of them are fake tea for
weight loss which people are favorite. Shop assistant of pharmacy P.T. in
Huynh Tan Phat Street in District 7 listed many name of weight loss
nutritional supplements from domestic to foreign-made products most of them
are worth VND500,000 (US$23) up.
Not only
pharmacies sell nutritional supplements, but social networking websites also
are flooded with advertising about nutritional supplements.
Most of
nutritional supplements, especially products for weight loss, are attached
with leaflets that are made of natural herbs accordingly they will not cause
harmful side effects for human. However, herbalist Le Van Truyen, former
Deputy Health Minister, said that private companies themselves boasted about
the use of nutritional supplements without checking of health authorities.
At a
meeting about nutritional supplements held lately, Nguyen Hung Long, deputy
chief of Vietnam Food Administration (VFA) under the Ministry of
Health, said that there are over 10,000 nutritional supplements in local
markets with various products for weight loss.
Though
there has no case of complication due to taking nutritional supplements, the
risk is threatening; therefore, health authorities are tightening control
over the products. In first six months of the year, Food Administration of
Vietnam has fined tens enterprises with the amount up to VND1.5 billion
(US$68,760) for violating drug advertising regulations, Long said.
Dr. Do
Thi Ngoc Diep, director of Nutrition Center in Ho Chi Minh City, said
that many people are unsuccessful in losing weight, as a result, they
seek the quick methods to reduce fat. However, haste makes waste, said Dr.
Diep; every medicine or nutritional supplements which help reducing weight
quickly all have less or more bad side- effects.
From the
reality, Dr. Nguyen Thanh Phong, head of VFA, said that the administration
liaising with related agencies to check and fine owners to sell fake or
substandard products. Consumers should choose products with clear indication
of origin and they should inform authorities if they detect low quality
products, said Dr. Phong.
Viet
Capital Bank supports clients to buy Audi cars
Representatives
of Viet Capital Bank and Lien-A International JSC shake hands at the signing
of a cooperation agreement on Phu Quoc Island off mainland Kien Giang
Province last week to introduce a program to lend to customers wanting to
purchase Audi cars.
Under
the program, the minimum term is 24 months and the maximum term is 60 months
for corporate customers and 72 months for individuals. A fixed interest rate
of 6.9% will apply in the first year.
Viet
Capital Bank said it would streamline procedures and support clients to take
out loans quickly. The program lasts until end-September.
Jan-Jun
FDI approvals plunge
Fresh
foreign direct investment (FDI) approvals in January-June have declined
strongly from a year ago and to the lowest level compared to the same period
of three previous years, according to data of the Ministry of Planning and
Investment.
By June
20, cities and provinces had granted investment certificates to 757 new
foreign-invested projects with combined capital of US$3.83 billion, a
year-on-year drop of 21%. Some US$1.65 billion had been pledged for 281
operational projects, down 17% against the same period of 2014.
June
marked the fifth consecutive month of decline in FDI approvals in Vietnam
this year.
In all,
the total registered FDI in the year to June 20 had tumbled 19.8%
year-on-year to US$5.49 billion.
The
figure is well below the US$6.38 billion in January-June of 2012, the
US$10.47 billion in the same period of 2013 and the US$6.85 billion in the
same period of 2014.
The FDI
plunge was attributable to the absence of multi-billion-dollar projects
licensed. The biggest project worth US$660 million was registered by Hyosung
Dong Nai Company Limited in Dong Nai Province to produce and outsource fiber
products.
However,
FDI disbursements in the period are still positive. The Ministry of Planning
and Investment estimated around US$6.3 billion had been realized, up 9.3% on
a year ago.
Do Nhat
Hoang, head of the Foreign Investment Agency (FIA) under the ministry, told a
conference on FDI in March that the registered FDI capital was expected to
reach US$18 billion this year. This target is hard to obtain if the country
cannot attract more big projects toward the end of the year.
However,
experts said the FDI disbursement target of US$12 billion for the whole year
is achievable as foreign investors have injected US$6 billion to their
projects in January-June.
Last
year saw FDI pledges totaling US$21.92 billion, down 1.9% versus a year
earlier. Some US$16.5 billion of the total figure was pledged for 1,843 new
projects and US$5.41 billion for 749 operational projects.
HCM
City imposes no ceiling price on budget homes
The HCMC
Department of Construction has confirmed that the city has not imposed a
ceiling price on housing projects for low-income people.
In reply
to queries posed at a seminar in the city on June 29, the department said the
price of budget homes is not capped at VND12 million (US$552) per square
meter.
Speaking
at the seminar on low-cost houses organized by the HCMC Institute for
Development Studies, delegates said many low-income condo projects in the
city were selling for VND15 million a square meter.
However,
Phan Truong Son, head of the department’s house and real estate market
management unit, said the city government does not regulate that prices of
social condos must be VND12 million or below a square meter.
Project
developers must obtain approval from the People’s Committee before announcing
prices to clients. The prices should be reasonable as the projects enjoy tax
and rent incentives.
However,
as site clearance cost is included in selling prices, it is normal for a
budget condo in District 4, which is near the downtown area, to be more
expensive than a commercial condo in the fringe district of Tan Binh, Son
said.
At the
seminar, real estate enterprises complained about a regulation that requires
investors to set aside 15-20% of the units at a commercial project to sell to
low-income people will be a challenge. The rule will take effect early next
month.
Nguyen
Van Duc, deputy director of Dat Lanh Real Estate Company, said the regulation
would affect low-income earners as they would have to pay the same management
fees as other residents in the same project.
In
addition, the Government should be responsible for developing budget homes instead
of property developers.
Regarding
the issue, Son from the HCMC Department of Construction said the State
certainly takes responsibility but enterprises must take part in the program.
For instance, the State is responsible for State-owned projects for civil
servants and investors should develop low-cost projects for other homebuyers.
The
investors of low-income house projects are entitled to tax, land use fee and
site clearance incentives, Son added.
Airport
link to new urban growth
A
cabinet meeting yesterday discussed the implementation of special policies
and mechanisms for urban development along the Nhat Tan-Noi Bai Highway in Ha
Noi.
Policymakers
said the highway would play an important role in the capital city's
socio-economic development as it connects downtown Ha Noi with the Noi Bai
International Airport.
A report
by the Ha Noi People's Committee said the Nhat Tan-Noi Bai urban development
project would need an investment of around VND33 trillion (US$1.51 billion).
Infrastructure development alone would cost VND22 trillion ($1 billion) and
land site clearance VND10.8 trillion ($495.4 million), the report said.
With the
city unable to raise such funds, the cabinet agreed that special policies and
mechanisms were needed if the urban development plan was to be carried out by
2025.
"There
is an urgent need to complete special policies and mechanisms needed to speed
up infrastructure development of the Nhat Tan-Noi Bai urban area," said
Construction Minister Trinh Dinh Dung.
Prime
Minister Nguyen Tan Dung said the "special mechanisms must allow the
area to be developed based on its economic potential without relying on the
State Budget."
At
yesterday's meeting, Dung also discussed numerous other issues raised by the
Government agencies and ministries regarding the Nhat Tan-Noi Bai urban area,
including site clearance, social housing projects and the process to select
investors and determine land value.
He
ordered the Ministry of Planning and Investment to compile policymakers'
feedback and recommendations in a report that his office would review later.
Vinmec
Hospital Network partners with Orion Health
Vinmec
Hospital Network has announced a partnership with Orion Health (New Zealand),
a global eHealth software company delivering interoperable solutions for
hospitals and healthcare facilities worldwide.
The
agreement creates an important platform aimed at increasing the efficiency of
clinical care as well as administrative tasks across Vinmec, enabling the
hospital network to continuously improve the quality of healthcare services.
Orion
Health will implement their Hospital Information System
"Enterprise" across the Vinmec group of hospitals. The Enterprise
solution allows patient clinical information and administrative data to be
centrally managed across the entire network giving the ability to share
patient records quickly and reliably across different sites.
From now
till 2020, Orion Health's Enterprise solution will be deployed in all 10
hospitals and clinics within the Vinmec Hospital Network across the country,
beginning with Vinmec Hanoi, Vinmec Phu Quoc, Vinmec Central Park and two
clinics : Vinmec Royal City and Vinmec Saigon.
"This
partnership with Orion Health is testament to our continuous effort in
raising the quality of healthcare services to international standards. We
aspire to have other hospitals under the Vinmec Hospital Network to achieve a
similar accreditation to raise Vietnam's healthcare standards to be on par
with that of developed countries," said Prof. Dr. Nguyen Than Liem, CEO
of Vinmec International Hospital, after the hospital became the first general
hospital in Vietnam to achieve accreditation by the Joint Commission
International - the gold standard in healthcare quality worldwide.
Orion
Health Enterprise software enables standardized workflow and processes in
patient record management, allowing medical records to be entered into a
single integrated system and seamlessly monitored across all sites. This
allows for easy coordination across care teams within the Vinmec Hospital
Network so clinicians can make accurate and timely diagnosis. Patients will
also benefit from increased flexibility as they can choose to visit any site
within Vinmec for their consultation and know the clinician will have full
access to their information.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 2 tháng 7, 2015
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