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BUSINESS IN BRIEF 4/7
Fishermen
need loans to update boats
The
Deputy Minister of Agriculture and Rural Development Tran Thanh
Speaking
at a forum on offshore fishing held last week in Rach Gia in Kien Giang
Province, Nam said that offshore fishing played an essential role in economic
development, helped to protect the country's sovereignty, and created jobs
for millions of people.
Viet
Nam's fishing industry ranks 20th in the world in output and fourth in
exports, but 90 per cent of the vessels are small, made of wood, and have
outdated technologies, according to Nam.
With
200km of coastline with many islands, the area has favourable conditions for
fishing, with an annual output of around 500,000 tonnes, according to Mai Anh
Nhin, Deputy Chairman of
But the
industry faces poor logistics service, Nhin said.
He said
new boats were necessary for the area to become a major fishing centre in the
Mekong Delta, as planned by the central Government.
Duong
Minh Chuan, Vice Principal of Kien Giang University, pointed out other
challenges facing the industry, including poor living standards and unstable
incomes of fishermen, poor safety regulations and weak state management.
Also
speaking at the forum, Nguyen Xuan Niem, Deputy Director of Kien Giang's
Department of Science and Technology, said the use of the latest technologies
on boats would bring huge benefits for fishermen.
Speakers
at the forum also agreed that it was essential to establish more service
companies catering to fishing vessels, especially logistics vessels supplying
gasoline, oil, water and rice at sea. This would help fishermen stay offshore
for a longer period of time.
About
200 fishermen from the region attended the forum. They spoke about their
challenges related to the Government's Decree 67 on incentive policies for
fishermen.
Decree
67 permits bank loans to fishermen at lower interest rates and with
favourable grace periods. It also promotes infrastructure investment in
aquaculture farms.
Under
the decree, fishermen are allowed to borrow 90 per cent of the cost for
building boats made of metal over 10 years at an interest rate of 3 per cent.
Loans for wooden boats can be 70 per cent of building costs.
Although
the decree has been implemented for nearly one year, only a few fishermen
have accessed preferential loans.
In
The
event was organised by the National Agriculture Promotion Centre in
cooperation with the
SHS
to issue $11.5 million in bonds
Sai
Gon-Ha Noi Securities Joint Stock Company (SHS) this year will issue VND250
billion (US$11.5 million) in bonds under private placement with a maturity of
two years and a face value of VND1 billion ($46,300) each.
The
interest rate for the bonds will run from 8.5 to 9.5 per cent per year in the
first six months, and will follow the reference interest rate thereafter.
The
company plans to issue bonds between the second and third quarters of this
year in order to increase funds to create more loans for margin trading.
SHS this
year plans to issue VND1-1.2 trillion ($46.3-55.5 million) of bonds in
various packages.
FPT
to boost charter capital
FPT Corporation
has completed procedures to increase its charter capital by more than VND500
billion (US$22.7 million) to VND3,975 billion ($180.68 million).
The
amount has been reached after it issued additional shares to give new stock
dividends to shareholders. The enterprise issued 51.8 million shares to pay
dividends to shareholders at a rate of 15 per cent. The capital for paying
dividends was taken from its retained earnings. After the issuance, the total
number of its shares increased to 397.5 million, equivalent to the charter
capital of VND3,975 billion.
Last
year, FPT shareholders received cash dividends at 20 per cent, equivalent to
VND691 billion ($31.4 million). The dividends were paid on June 12.
At the
end of April, the firm issued more than 1.7 million employee stock ownership
plan shares to its workers who made notable contributions in 2014.
This
year, the corporation targets to increase its revenue by 13 per cent. In the
first five months of the year, FPT gained nearly VND16 trillion ($727.27 million)
in consolidated revenue, a 30 per cent increase over the same period last
year. Its profit before tax reached more than VND1,100 billion ($50 million),
marking a 12 per cent year-on-year increase, while its earnings per share got
VND2,128 ($0.096), posting a year-on-year increase of 19 per cent.
The
results were mainly contributed by the Technology Division and the
Distribution and Retail Division. The Technology Division raked in VND2,778
billion ($126.27 million) in revenue, registering a 38 per cent year-on-year
increase. Of this, the revenue from international markets was VND1,442
billion ($65.54 million), accounting for 52 per cent.
The
Distribution and Retail Division recorded more than VND10,800 billion ($490.9
million) in revenue, marking a 34 per cent year-on-year increase. The retail
segment saw a 66 per cent increase in accumulated revenue in comparison with
the same period last year.
FPT's
global revenue reached nearly VND1,700 billion ($77.27 million) in the first
five months of 2015, posting a 54 per cent year-on-year increase.
Fruit
exports could reach $2 billion
Fruit
export turnover is expected to reach US$2 billion by the end of this year
when businesses increase their exports, the Viet Nam Fruit and Vegetable
Association has said.
For
export markets with strict guidelines, businesses are improving quality,
including the use of irradiation technology or sulphur dioxide fumigation.
They are also trying to overcome technical barriers of import markets.
The
Ministry of Agriculture and Rural Development said many choosy markets, such
as the
The
Ministry of Industry and Trade said
In 2009,
fruit export turnover reached $439 million and increased to $1.1 billion in
2013 and $1.5 billion in last year.
In the
first six months, fruit export turnover reached $700 million.
Nguyen
Xuan Nhi, director of Tropical Fruit Export Ltd Co said the company has had
seniority in exporting rambutan and longan to Europe since 2013, and now has
an import partner in the
Nhi
said: "Many more kinds of Vietnamese fruits and vegetables have
approached strict export markets such as the
In early
June,
Jeune
Thanh Binh Co has brought sulphur dioxide fumigation technology to
According
to the Vietnamese Commercial Office in
VN
business given norms for operation
The
Ministry of Planning and Investment has publicised norms for 267 conditional
business areas to help enterprises meet requirements under the revised
Investment Law which takes effect from July 1.
The
conditions are classified into 16 sections. They are national security and
defence; judiciary; finance; industry and trade; labour, invalids and social
affairs; and transport; construction; as well as information and
communications. The remaining conditions are education and training;
agriculture and rural development; planning and investment; health; science
and technology; as well as culture, sports and tourism; natural resources and
environment; and banking.
Each
section has specific conditional business areas and provides the details of
the conditions that must be complied with along with the existing
regulations.
Business
registrations for conditional business areas will be carried out in
accordance with the requirements of these sections.
Business
categories under conditional projects include distribution, logistics,
healthcare, education, as well as tobacco production and printing.
Detailed
conditions for all of these conditional business areas are listed on the
national business registration portal at dangkykinhdoanh.gov.vn.
The
Investment Law states that business and investment conditions should be
contained in laws, ordinances, decrees, and international treaties in which
Industrial
production continues rise
The
country's index of industrial production (IIP) in the first half of this year
increased 9.6 per cent year-on-year, the General Statistics Office (GSO)
said.
This is
the fourth consecutive increase in production this year, following a 9.1 per
cent increase in the first quarter, a 9.4 per cent rise in the first four months
and 9.2 per cent in five months.
The
positive growth was spurred by processing and manufacturing industries, which
expanded by 9.95 per cent on-year, said head of GSO Nguyen Bich Lam.
Industries
that posted IIP rises included motorised vehicles with 28.7 per cent,
textiles and garments (23.2 per cent), leather and leather-made products
(21.3 per cent) and electronics and computers (21.1 per cent).
Other
industries recording industrial production hikes in the January-June period
were rubber and plastic products (12.6 per cent); electricity production and
distribution (11.2 per cent) and paper products (10.3 per cent).
Rises
were more significant for mobile phones, which rose 68.8 per cent,
automobiles (57.6 per cent), television (40.3 per cent), steel (18.2 per
cent), animal feed (16.3 per cent) and cement (10.5 per cent).
According
to Lam, the improved domestic business environment encouraged more new
businesses to enter the market. That resulted in a 12.3-per-cent yearly rise
in the consumption index in five months, higher than the 9-per-cent increase
in the same period last year.
Up to
45,406 new firms were established with a total registered capital of VND282.4
trillion (more than US$13.13 billion) from January-June, a 21.7 per cent
increase.
There
was also a 22.3 per cent in the level of registered capital.
Dung
Quat Refinery negotiations start
Binh Son
Refining and Petrochemical Company Limited (BSR) has started negotiating with
wholesalers over Dung Quat Refinery's fuel products in the second half of
this year.
The
negotiations are held amid high inventory.
Dinh Van
Ngoc, director of BSR, which is responsible for the management, operation,
and business of Dung Quat Refinery, was quoted by Dau Tu (Investment)
newspaper as saying that BSR had sent a working group to negotiate contracts
with Petrolimex, one of the country's largest fuel wholesalers. Negotiations
will be carried out with other wholesalers as well.
The
negotiations follow wholesalers' recent hesitation over buying diesel from
Dung Quat Refinery and a high stockpile of diesel as the selling price of the
refinery's diesel climbed higher than the price of imported oil.
The
price gap was attributed to preferential tax rates in line with the ASEAN
Trade in Goods Agreement imposed on certain fuel products, including diesel
and Jet A1, causing difficulty in the consumption of domestically
manufactured products.
According
to BSR, the diesel stockpile of Dung Quat Refinery reached 120,000cu.m at the
end of June. Diesel has remained a major product of BSR, with an output of
around 3.3 million tonnes per year, or 50 per cent of the refinery's total
output, and BRS worried that high inventory might result in operation cuts.
PetroVietnam
said that in March, several large wholesalers proposed to buy less petrol and
oil from BSR than previously signed contracts in order to increase the import
volume of diesel with lower prices under "Form D" – a certificate
that proved ASEAN origin.
Under
the trade pact, the import tax on diesel from ASEAN members was 5 per cent,
compared with a 20 per cent tariff on diesel imports from non-ASEAN members.
According
to a Reuters report published at the end of April,
Ngoc
noted that BSR will propose the Ministry of Finance to revise tax rates on
diesel and Jet A1 to ensure the competitiveness of Dung Quat Refinery's
products against Form D products.
Dung
Quat Refinery was the principal oil refinery project of
Vietnamese
lychee continues to shine in Australia
Vietnamese
Lychee Day opened in the Australian city
The
event, organised by the Vietnam Trade Office in
According
to Nguyen Hoang Thuy, Head of the office, Vietnamese lychee will find a
foothold in
She
added as many as 40 tonnes of Vietnamese fresh lychee have been exported to
the country, mainly to big cities including Melbourne, Sydney and Brisbane,
since its first batch on June 12.
She also
highlighted the event’s significance in promoting the fruit in the Australian
market while inciting patriotism among Vietnamese overseas.
Hoang Vi
Cao, Director of TCT Export in
Hi-tech
shrimp farming in Binh Dinh
The Viet
Uc Group, Vietnam’s leading shrimp fry supplier, will invest about 800
billion VND (3.67 million USD) in a hi-tech intensive shrimp farming zone in
central Binh Dinh province’s Phu My district.
Covering
300 hectares, the project aims to make high-quality products that meet export
requirements to big markets such as the European Union, the US and Japan.
In the
first phase of the project, the province will allocate 100 hectares to the
company to build a farming zone.
The
remaining 200 hectares will be provided when the company expands its
production scale and builds a processing factory.
Advanced
technologies from
Thriving
real estate market in HCM City
According
to the company, the result was buoyed by stellar national economic growth,
increases in export revenue and the expected coming into effect of the Law on
Real Estate Business on July 1.
Significant
improvement was seen in the apartment market with 8,500 units available for
sale in the second quarter. In the six-month period through June, over 18,000
apartments were offered to customers, with 67 percent of which sold.
This is
also a golden chance for developers to launch premium products, most of which
are in the city’s eastern part. Prices per square metre are around 1,781 USD,
rising 3.2 percent from the first quarter of this year.
The
stability of the stock market, gold prices, exchange rates and interest rates
has made the property market an attractive playground for the first time in
the past seven years, highlighted Marc Townsend, Managing Director of CBRE
Vietnam Co. Ltd, adding that most customers are interested in small-sized
apartments.
However,
60-70 percent of high-end properties are being purchased for investment, meaning
the end users have not made significant impacts on real estate demand and
supply, said Duong Thuy Dung, Associate Director of research and consulting
services at CBRE Vietnam.
She
added that foreigners have shown interest in Vietnamese real estate market,
as seen in the flow of emails to CBRE inquiring into money transfer methods
and purchasing buy-to-rent housing properties.
In a bid
to draw more foreign real estate investors to
Currently,
Vingroup is the only Vietnamese real estate developer that has set up an
office in the
The
processing and manufacturing industry, which picked up 9.95 percent from the
same period in 2014, has made significant contributions to the surging
industry growth, said Minister of Industry and Trade Vu Huy Hoang at a
video-conference held on July 1, adding that the increase in input production
has yielded stellar growth in the production sector.
Consumption
of the processing and manufacturing industry also posted steady growth,
rising 12.7 percent in the first five months of this year against the same
period last year. High consumption was seen in motor vehicle production (35.5
percent), electronic and computing production (30.6 percent), metal
production (23.3 percent) and textile production (14.5 percent).
As of
June 1, the inventory index had rose 11.8 percent, 1 percent below that of
2014. Some industrial products with lower inventory levels include rubber and
plastic products (down 7.3 percent) and electricity equipment production
(down 2.1 percent).
However,
production capacity of the country’s key industrial sectors such as
electronics, garments, leather and footwear and car and motorbike assembling
were limited due to dependence on imported materials resulting in high
production costs.
To
fulfil industrial production targets in the last six months of the year, the
ministry will increase the application of science-technology and increase the
use of locally-produced components, Minister Hoang said.
He
highlighted that the ministry will look for consumption markets and foster
inventory sales while calling for investment in the supporting industry
sector to serve the demand of input materials and increase connectivity
between enterprises in production and supply.
PetroVietnam
earns less over falling oil prices
Despite
climbing production indexes, the national oil and gas group PetroVietnam saw
its half-year revenue reduce by 8 percent annually due to dropping oil
prices.
The
group’s Vice Director Do Chi Thanh unveiled the information at an online
session held by the Ministry of Trade and Industry on July 1.
According
to Thanh, the group earned 168 trillion VND (7.7 billion USD) with a net
profit of 23.6 trillion VND (1.08 billion USD).
PetroVietnam
posted an overall crude oil output of 9.26 million tonnes in six months, up
9.2 percent year-on-year. It also produced 3.48 million tonnes of petrol and
oil of all kinds and 14.49 billion kilowatt hours of electricity.
Minister
of Industry and Trade Do Huy Hoang said in the initial plan for the year,
PetroVietnam was scheduled to pump about 14.74 million tonnes of crude oil
with an expected price of 102 USD per barrel, equivalent to 700 USD per
tonne, in order to reach a national growth target of 6.2 percent.
However,
during the period, oil prices have dropped to as low as 65 USD per barrel,
falling well below expectation.
Given
the situation, the ministry is considering new crude exploitation plan in
order to realise macro-economic targets.
Can
Tho surpasses social-economic goals in 6 months
Can Tho
achieved and impressively surpassed many of its socio-economic goals in the
first six months of the year, according to Tran Thanh Man, Secretary of the
city’s Party Committee.
At a
conference held on July 1 to review the socio-economic activities of the
first six months and determine plans for the second half of the year, Man
revealed the city’s economic growth reached 9.19 percent.
The rate
is 1.5 times higher than the national average of 6.28 percent and the highest
among five centrally-governed cities.
The
tourism sector served more than one million tourists, equal to 73 percent of
the year’s target and up 60 percent yearly, generating a revenue of 970
billion VND (44.5 million USD), an 85 percent surge from the same period last
year.
The
city’s budget collection reached 8.82 trillion VND (404.4 million USD) in the
first half of the year, a 50 percent increase against the same period.
In
addition, the city ensured order and security, actively prevented fires and
reduced the number of collective appeals.
The city
revoked licences from delayed projects, addressed issues faced by enterprises
and reduced pollution by building garbage incinerators.
Can Tho,
however, fell short in some sectors such as drawing social capital into
production and business, improving urban infrastructure and addressing river
bank erosions.
In order
to achieve the goals set for the year, the Party official asked department
leaders to raise their sense of responsibility and bring a dynamic and
innovative spirit to the table.
Mong
Cai border gate extends hours
Prime Minister
Nguyen Tan Dung has approved the extension of working hours at the Mong Cai
border gate, the counterpart to
Accordingly,
the border gate will be open for immigration activities from 7:00 am to 20:00
pm (
The
extension of operating hours aims to facilitate cross-border travel and trade
between the two countries.
According
to official statistics, about 2 million visitors and 500,000 tourists pass
through the Mong Cai-Dongxing border gates annually.
Quang Binh’s industrial production rises 8.5 percent
The
index of industrial production (IIP) of the central
The rise
of the IIP indicates the stability of the locality’s industrial production
and its promising growth.
Strong
growth from a number of sectors contributed to the high rate. Among these,
the garment-textile industry, non-metal minerals and cement saw the highest
growths of 40 percent, 14 percent, and 11 percent, respectively.
To
generate the positive results, the local authorities have promoted
administrative procedure reforms to facilitate production of local
enterprises.
The
province plans to increase support for firms, especially those operating in
industry in the locality.
It will
also enhance investment promotion and assist investors to complete their
industrial projects, focusing on garment-textiles, construction material and
wood processing.
VSIP
Nghe An project receives licence
The
central province of Nghe An granted the investment licence of VSIP Nghe An
Industrial-Urban-Service Park to the Vietnam-Singapore Industrial Park Joint
Venture Company on June 30.
Covering
1,475 hectares, the project has a 3 trillion VND (137.5 million USD)
investment for its first phase that will be implemented in 750 hectares in
Vinh city and Hung Nguyen district.
The
project, part of the cooperation programme between the Vietnamese and
Singaporean governments, is scheduled to be expanded to Nam Cam industrial
park in the Southeast Economic Zone of Nghe An in the second phase.
A
ground-breaking ceremony is expected to be held on September 16 this year.
Currently,
ground clearance for the project is being sped up, with 490.62 hectares of
farmland approved by the Prime Minister.
As of
the end of June, Nghe An has granted and adjusted investment licences for 96
projects totalling 27.88 trillion VND (1.32 billion USD), including 75 new
projects.
The
province has also received 5 projects funded by non-governmental
organisations with a total investment of nearly 477, 000 USD.
Ha
Nam sees impressive half-year growth
Northern
Ha Nam province posted a GDP of almost 4.5 trillion VND (207.3 million USD)
in the first half of 2015, an annual increase of 14.7 percent and the highest
rise recorded in years.
Accordingly,
its overall agricultural and industrial production values reached around 1.3
trillion VND (59.9 million USD) and some 8.96 trillion VND (413 million USD),
equivalent to 63.9 percent and 42.11 percent of the local plan for the entire
year, respectively.
Some 32
new projects, including 19 foreign-funded projects, were registered during
the period, helping Ha Nam rank third nationwide in terms of investment
attraction.
The
province exported almost 454 million USD worth of commodities, while its
retail and service revenue hit approximately 6.7 trillion VND (308.7 million
USD).
The
local economic momentum has thus far created 8,600 additional jobs and
reduced the rate of impoverished households by 3.71 percent.
Dong
Nai increases impressive trade surplus
The
southern province of Dong Nai saw a trade surplus of 464 million USD in the
first half of 2015, three times higher than that of the same period last
year.
From
January-June, the province’s export value was estimated at about 6.7 billion
USD, up 14.5 percent year on year, while import turnover is over 6.2 billion
USD, according to the local Statistics Department.
The
Department of Industry and Trade (DoIT) attributed the increase in exports to
businesses’ market expansion and decreases in tariffs brought about by signed
free trade agreements.
Among
nearly 30 export commodities, only five saw falls in value and volume.
Commodities with high growth rates include footwear, garment-textiles, wood
products, means of transportation, pepper corn and cashew nuts.
Head of
the DoIT Le Van Danh said through the end of this year, DoIT will create
favourable conditions for enterprises to reduce the time spent on
import-export procedures.
It will
hold business meetings and dialogues to provide firms with updated
regulations on the origin of products exported to Europe, Japan and Turkey.
VSIP
JV’s ambitious expansion
Vietnam
Singapore Industrial Park JV Co., Ltd. (VSIP JV) has recently stimulated
growth in Vietnam by establishing VISP Nghe An and finding its first tenant
for VSIP Hai Duong.
Last
week, VSIP JV officially obtained exclusive rights from the Nghe An
Provincial People’s Committee to develop a 750 hectare integrated towns and
industrial park.
VSIP
Nghe An Co., Ltd., the project company undertaking this project, is
wholly-owned by VSIP JV - joint venture between Vietnam’s Becamex IDC
Corporation and a Singaporean consortium led by Sembcorp Development.
VSIP JV
also received the investment certificate for the first phase which comprises
198 hectares of industrial and 81ha of commercial and residential land. The
investment of the first phase will be partly funded by equity of $15.2
million.
Garment
manufacturers, agribusinesses and the fast moving consumer goods sector
(FMCG) are the target industries of VSIP Nghe An.
With the
investment in VSIP Nghe An, there are now a total of seven VSIP projects
across Vietnam, with the others located in Binh Duong, Bac Ninh, Haiphong,
Quang Ngai and Hai Duong provinces. The total gross area of the seven VSIP
development projects is more than 6,000ha.
Along
with the establishment of VISP Nghe An, VSIP Hai Duong Co also confirmed its
first tenant Regina Miracle International (Vietnam) Limited, which received
its investment certificate last week from the Hai Duong Provincial People’s
Committee.
Regina
Miracle, with the total investment capital of $88 million, will set up a
13.6ha shoe manufacturing facility within VSIP Hai Duong located in Cam Giang
district.
Construction
of the factory will commence in January 2016. Approximately a staff of 3,800
will be employed to work in the factory during its initial phase. Regina
Miracle planned to produce about 6.8 million pairs of shoes annually in the
fully operational factory.
Regina
Miracle’s factory in VSIP Hai Duong is its second in Vietnam. In March 2014,
it invested $150 million in its first factory in VSIP Haiphong. That factory
will be operational in September 2015 and will produce lingerie and
sportswear apparel.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 4 tháng 7, 2015
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