Thứ Hai, 24 tháng 8, 2015

BUSINESS IN BRIEF 24/8


Survey finds optimistic outlook for Q3
Viet Nam's enterprises have a positive outlook on the business climate for the third quarter, according to the General Statistics Office (GSO) under the Ministry of Planning and Investment.
The office reported that 49 per cent of 3,389 enterprises in the domestic processing and manufacturing sector participating in its survey on business trends said that local business would be better in the third quarter.
At the same time, 13.2 per cent of the enterprises predicted that local business would be weaker, while 37.4 per cent said the business situation would remain stable.
All the surveyed businesses said that trends in production and business in the second quarter were more stable than in the first quarter.
However, the office said that in the first seven months of this year, Viet Nam had 32,370 enterprises ending their operations or locking tax codes, an increase of 1.2 per cent against the same period last year.
That figure proved that the situation of enterprises has not been better due to the complicated development of the domestic economy, as well as the slower recovery of local enterprises, vietnamplus.vn reported.
Experts said the domestic macro-economy has shown signals of stability and growth, but with pressures of competitiveness during periods of integration into the world economy, local enterprises still continue facing many difficulties.
Further, results of reforming the investment and business environment have not met the demands from the domestic enterprise community, the experts said.
Local enterprises have also faced difficulties, including proposals on reducing time for granting permission for construction, receiving electricity and the start-up of business. The enterprises need the Government's supports for them.
To improve the efficiency of enterprises, Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), said one of the important solutions is to further improve the local business environment.
He said the state should promote socialisation of investment activities and provide services under the public private partnership method, including some state management services.
The state should also restructure paid government public services to convert into operations following enterprise procedures and promote further equitisation, he said.
Moreover, the State should promote the adoption of information technologies for its management, especially in administrative procedures and online public services, as well as implement one-door procedures.
Exports at $6.68 billion in first half of August
Vietnam’s total export turnover in the first half of August stood at $6.68 billion, according to Vietnam Customs, with foreign enterprises exporting $4.67 billion, or 69.9 per cent of the total.
Mobile phones and electronics saw the highest export turnover, of $1.4 billion. Textiles followed, with $1.242 billion, including garments with $1.063 billion, cloth for manufacturing $19.4 million, and fabric almost $102 million.
Vietnam’s textile exports from January to July reached $12 million, for growth of 9 per cent compared to the same period last year, according to the Vietnam Textile & Apparel Association (VITAS). But this was the lowest growth recorded in the last three years and well down on the 19 per cent year-on-year growth for January to July 2014.
In the first half of August Vietnam exported material for garments and footwear worth $59.6 million.
A number of exports recorded solid growth, such as footwear, computers and electronic devices, transportation and components, and crude oil, with $489.9 million, $617.4 million, $251 million, and $97 million, respectively. Rice exports of 252,000 tonnes also grew solidly.
Total export turnover from January to August 15 reached $98.9 billion.
$154 million in 20-year goverment bonds issued in July
Twenty-year government bonds with a total value of VND3.45 trillion ($154 million) were issued  in July, according to an announcement by the Ministry of Finance (MoF) on August 20.
As at August 14 the total value of bonds in the market was VND140.938 trillion ($6.29 billion). Government bonds totaled VND123.479 trillion ($5.5 billion), equal to 49 per cent of the target for 2015. Bonds guaranteed by the government totaled VND17.459 trillion ($779 million), representing 36 per cent of the 2015 target. Enterprise bonds totaled VND11.148 trillion ($487.86 million).
Regarding government bonds, MoF said it is researching two new types. Besides traditional bonds, where holders are paid interest periodically, the ministry aims to issue bonds in which holders are not paid interest periodically and another in which the interest rate is adjusted by the market.
Deputy Head of the Department of Banking and Financial Institutions at MoF, Ms. Phan Thi Thu Hien, said that from January to August mobilizing capital from bonds faced a number of difficulties. Over the remainder of the year, however, MoF will attempt to reach its targets.
She added that 80 per cent of bonds are held by commercial banks and the rest by insurance companies, securities companies, and investment funds.
AIA opens new office in Hanoi
AIA Vietnam opened a new office on Hoang Quoc Viet Street in Hanoi’s Cau Giay district on August 19. This is the first “AIA GA NEXT” office, which provides an open and friendly space for customers. A representative from AIA said that Vietnam has great demand for insurance so the new-style office has been adopted to help AIA meet customer requirements.
The new office is under the AIA strategy of providing more services to customers. Before the AIA GA NEXT office it had others such as “Nest by AIA” (providing five-star services), and “AIA Exchange” (inspired by the New York stock exchange, with a range of functions). AIA Vietnam now has over 120 offices in Vietnam in 53 of the country’s 63 cities and provinces.
AIA also awarded 30 scholarships on the opening day and 30 gifts for poor students in Hanoi, as part of the Hanoi Fund for Children. Each scholarship is worth VND1 million ($45).
Dat Xanh signs agreements for Luxcity
The Dat Xanh Group has signed strategic cooperation agreements with five partners: Vietinbank, Savills, Apave Vietnam & South East Asia, Ong & Ong Co., and An Phong Construction Company Limited, to implement its Luxcity real estate project in Ho Chi Minh City.
According to Mr. Bui Ngoc Duc, Deputy General Director of Dat Xanh, the comprehensive strategic cooperation will perfect project implementation.
Vietinbank will guarantee the project while Savills will conduct management and operations after handover is completed. Apave will monitor inputs and outputs of the project to ensure quality and Ong & Ong will be involved in interior and exterior design. An Phong will be main contractor, responsible for construction.
Mr. Duc expressed his confidence in the cooperative arrangements. “It will allow real estate transactions to be more active, not only in Luxcity but also other projects that the Dat Xanh Group will launch in the future,” he said.
In Huynh Tan Phat Street in District 7, adjacent to the Phu My Hung urban area, with quick and easy connections to Districts 1, 2, and 4, Luxcity has a convenient location for residents. The project consists of two 19-storey towers and one office block, on a total area of 7,480 square meters.
Hanoi announces urban area planning in Hoang Mai
The Hanoi Department of Planning and Architecture, in cooperation with the Hoang Mai District People’s Committee, has announced detailed construction planning for a new urban area in capital’s southern district.
Located in Thinh Liet ward, the urban area has an area of 60,323 square meters and will house 4,500 people.
According to the department, upon completion the urban area will address the city’s housing demand, at the same time providing public services, schools, and kindergartens, and contributing to enhancing the environment and quality of life of people in the area.
The urban area is designed as an ecological urban area with many green zones, providing a modern and convenient living environment to residents. High-rise buildings are located in the north and west of the urban area, with low-rise buildings in other areas.
Construction planning for the urban area is part of Hanoi’s general construction planning to 2030 and vision to 2050.
Gamuda Gardens picks up award
Gamuda Gardens, the prime residential project developed by the 100 per cent foreign-owned Gamuda Land Vietnam, has won the prestigious “Best Residential Development” in Hanoi at the Vietnam Property Awards 2015.
“This award is indeed testament to our team’s hard work for over the last seven years,” said Mr. Cheong Ho Kuan, General Director of Gamuda Land Vietnam. “The achievement also reflects our team’s endless effort in continuing the journey to develop Gamuda Gardens as the Best Residential Development in Hanoi.”
He added that the award also affirms the trust that Gamuda Land Vietnam has received from residents, customers, partners, and the esteemed judges, without which it could not have won the award. “This award will further inspire and drive us forward in the development of integrated lifestyle townships in Hanoi and Ho Chi Minh City,” he said.
Strategically located in Hoang Mai district, Gamuda Gardens covers 73 ha and is one of the four main components of Gamuda City - a new mega city in the south of Hanoi. Gamuda Gardens, an integrated lifestyle township, provides more than 2,000 high-end units, including villas, semi-detached and terraced houses, and apartments.
The Botanic precinct, comprising 364 units of semi-detached and terraced houses, was completed and handed over to customers in April 2014.
Mr. Terry Blackburn, CEO of Ensign Media, the awards organizer and publisher of Asia’s industry-leading Property Report magazine, said at the ceremony: “What a monumental year to launch Vietnam’s biggest real estate awards. While the market struggled in the last few years, it is now back on track, with local industry players raising the bar to global standards. The Vietnam Property Awards is the most credible platform that recognizes such growth.”
Starting in Thailand in 2005, the Asia Property Awards have since expanded to reward developments, consultants, architects, and designers in China, Singapore, Malaysia, Indonesia, the Philippines, and Vietnam.
PVN acts to offset oil price fall
The Vietnam Oil and Gas Group (PVN) has drawn up plans to cut costs and optimize production to reverse its falling revenue caused by the world’s oil price plunge.
PVN’s acting chairman and general director Nguyen Quoc Khanh revealed the plans as the WTI price of crude oil delivered in September slid to US$41.87 per barrel on Tuesday. This six-year low has had strong negative impact on oil exporting countries including Vietnam.
In its plan for the final six months of 2015, PVN expected the average annual oil price to stay at US$63 per barrel, down US$40 over the average price of 2014. In the first half of last year, the average crude oil price was US$60.5 per barrel, falling US$52.3 or 46% year-on-year.
Khanh told a recent function held to celebrate the first oil product of H5 well at Te Giac Trang oil field southeast of Vung Tau City’s coast that the global oil price plunge had hit PVN’s production and business. The group has to cut costs and optimize production as a measure to cushion this impact.
The group’s revenue in the first six months was over VND296 trillion (US$13.2 billion), meeting 88.3% of the target for the period and 41% of that for the entire year. The after-tax profit was VND23.6 trillion (US$1.05 billion), or 7% lower than the first-half target but reaching 59% of the year’s target, dropping 10.5% year-on-year.
Earlier, PVN envisaged the worst scenarios for periods in its plans to cope with volatile crude oil prices in the second half of 2015. Important tasks are to review all costs and make necessary cuts.
A PVN leader told the Daily that the state-run group had prepared plans for further oil price fluctuations.
Earlier, the Government requested PVN to realize the revised target of 14.7 million tons of crude oil this year by pumping an extra one million to offset the State budget shortfall caused by lower oil prices on global markets.
Seafood exports to China stable despite weaker yuan
Vietnam’s shipments of agricultural and seafood products to China have remained stable since the northern neighbor devaluated its yuan against the U.S. dollar around a week ago.
Nguyen Van Kich, general director of Cafatex Company in the Mekong Delta province of Hau Giang, told the Daily that Vietnam’s shipments to China were predicted to drop after the yuan fall but they had remained normal over the past week.
Kich explained local firms continued to export farm produce and seafood to China as usual since demand stayed high.
Asked about the impact of the euro slide against the U.S. dollar on Vietnam’s exports to the European Union (EU), Kich said the euro fell a hefty 25% or more against the dollar while the greenback was the main currency used for export contracts.
“To ensure good sales of imported products, EU importers asked Vietnamese firms to lower prices,” Kich said.
Kich noted local exporters still obtained profit when the yuan weakened by 3-4% against the U.S. dollar. However, if it falls further, local exporters will not make profit.
Nguyen Van Dao, general director of Go Dang Joint Stock Company (GODACO) in Tien Giang Province, said Vietnamese firms usually delivered small shipments of farm and seafood products to China and mainly used Vietnam dong for payment.
Tran Van Hung, director of Hung Ca Company in Dong Thap Province, said the enterprise had sold two or three container loads of tra fish to China per week as usual.
Vietnamese companies turn out products as ordered by Chinese firms after the latter place deposits equivalent to 20-30% of contract value. Goods deliveries are made after Chinese firms have completed all payments.
Hung said Chinese importers usually settled contracts in Vietnam dong, so local exporters had no trouble exporting farm produce and seafood to the market after the yuan was devalued.
China is a major importer of Vietnamese farm products. According to a report of the Ministry of Agriculture and Rural Development, rice exports to China accounted for 38.1% of Vietnam’s total in the first six months of this year.
Malaysia, India and China are the three biggest importers of Vietnamese rubber, making up 72.4% of Vietnam’s total.
China is among key buyers of cashew, wood and wooden products made in Vietnam. Cassava shipments to the neighboring country accounted for 89.36% of Vietnam’s total in the first half this year, up 53.47% in volume and 46.15% in value year-on-year respectively.
HCM City sees funding for transport projects tripling in 2016-2020
The government of HCMC has projected VND124.2 trillion (US$5.6 billion) will be needed for transport projects in 2016-2020, tripling the amount in the five years to end-2015.    
Of the total funding, over VND55 trillion will come from the city budget and the remainder from other sources, including the central State budget, official development assistance (ODA) loans and private enterprises, heard a review meeting in HCMC on Monday.  
The transport projects to be executed include steel overpasses at Go Vap Roundabout in Go Vap District, My Thuy Roundabout in District 2 and Nguyen Huu Tho-Nguyen Van Linh Intersection in District 7 and tunnels at An Suong Intersection and Cong Hoa-Truong Chinh Intersection in District 12.
The city will also upgrade roads.
In addition, the city government will coordinate with the Ministry of Transport to implement the Ben Luc-Long Thanh expressway project and start work on belt roads No. 3 and 4 before 2020.
In 2011, the city set seven targets for the transport sector until 2015. These targets are public transport service improvement, construction of new roads and bridges, traffic density reduction, more land for traffic infrastructure, and decreases in the numbers of traffic jams.
After five years, the city has met six of the seven targets as the public transport service sector has met just 9.8% of commuter demand instead of 15% as targeted by the HCMC government.
HCMC has failed to attain the public transport service target as private vehicles has not been restricted as planned. Meanwhile, the city does not have metro and bus rapid transit lines in place while infrastructure for bus operations is not sufficient.
Due to the remaining difficulties, the city targets public transport service will meet 9.9% of demand until 2020.    
BIDV to invest $90.5 million in Quang Binh
The Bank for Investment and Development (BIDV) has signed an agreement providing a VND1.9 trillion (US$90.5 million) loan for three projects in the central Quang Binh Province.
The bank said the credit agreement will be used for developing an infrastructure project in Hon La Industrial Zone No. 2, the My Canh-Sunrise commercial apartment and the Le Thuy Garment Factory. Photo nhandan
The bank said the credit agreement will be used for developing an infrastructure project in Hon La Industrial Zone No. 2, the My Canh-Sunrise commercial apartment and the Le Thuy Garment Factory.
Earlier this month, Cathay United Bank, the Taiwan commercial bank, agreed to loan BIDV US$105 million in a Memorandum of Understanding on comprehensive co-operation.
According to the latest report, the central province has granted 13 investment licences for investors, with total capital of VND8.5 trillion ($405 million), for projects in infrastructure, tourism and real estate.
Sun Group also plans to develop two projects – the luxury Bao Ninh-Hai Ninh tourism resort and Phong Nha-Ke Bang tourism complex – with a total investment of VND5 trillion ($238 million).
Chairman of the provincial people's committee Nguyen Huu Hoai said the province has called for investment in 35 key projects to develop infrastructure, industrial zones, trade, tourism and production in the coming years.
He said the province has been building itself up as a major tourism centre in Viet Nam and Asia.
Strategic deal stroke by CBRE and Khang Dien
CBRE Vietnam and domestic developer Khang Dien have just signed a management agreement for a new portfolio of villa projects in the fast-growing District 9 of Ho Chi Minh City.
The portfolio includes Mega Village, Mega Ruby, Mega Sapphire, Mega Residence, and the Lucasta villas -a total number of 720 townhouses and 230 villas.
According to Nguyen Duc Trong, associate director of Khang Dien, each sub-project features a peaceful, green community with outdoor landscaping and facilities that suit the tropical villa lifestyle (such as a pool, clubhouse, gym), and convenient retail options on-site.
“Khang Dien is trusted by our customers due to our track record of delivering quality projects on schedule,” Trong said.
In each project, he added, the developer did not only focus on building a house but also on creating a real community to satisfy customers’ demands.
“Therefore, beside training professional teams to deliver the best services to our customers, we have selected CBRE based on strict quality criteria and our experience of smooth cooperation with them on previous projects/occassions. We believe that CBRE is the best choice for our portfolio in District 9 and are looking forward to cooperating with CBRE to build a peaceful and happy environment for our valued residents,” Trong said.
Marc Townsend, managing director of CBRE Vietnam said that he believed in the Khang Dien’s strategic view supported by its golden rule.
“Khang Dien has been playing an organic role in dynamically improving the infrastructural system of District 9. We believe that with the momentum of “Speak real and act real” and the good legal status of our projects, Khang Dien’s products will attract customers,” Townsend said.
District 9 has received the most government investment in transportation infrastructure, to enable projects such as the Ho Chi Minh City – Long Thanh – Dau Giay high way system, which is visibly progressing every day.
This infrastructure will benefit residents by cutting down on their commutes, but will also help to increase the products’ price, making the Khang Dien projects wise long-term investments.
Ben Thanh Market public toilet to have air-conditioning, music, bilingual notes
The public toilet at Ben Thanh Market in District 1, Ho Chi Minh City will be equipped with air-conditioners, music and bilingual instruction boards, local authorities have said.
Doan Ngoc Hai, deputy chairman of the District 1 People’s Committee, publicized the information at a meeting recently held to discuss a plan to improve the quality of the public restroom that is serving both locals and foreigners.
At the meeting, Hai assigned the District 1 Public Welfare Service One-Member Co. Ltd. to take measures to enhance the service quality in the toilet.
By October 1, the restroom must be furnished with air-conditioners, music and boards that provide users with regulations and instructions in Vietnamese and English, Hai said.
In addition, and most importantly, it must have rooms and paths exclusively intended for disabled people, the official said.
The authorities also agreed, in coordination with the district’s Economics Department and Culture and Information Department, to invite businesses to place advertisement panels in the restroom.
An inspection team of the District 1 People’s Committee will regularly inspect the toilet, and if the company is found failing to meet requirements, including on equipment standards and service attitude, three times, the authorities will stop its operations and assign the restroom to the Ben Thanh Market for management, operation and fee collection.
Currently, this public toilet serves more than 11,000 users per day at VND3,000 (US$0.13) per entry, the public welfare company said.
First batch of longan shipped to the US
Two tonnes of Hung Yen longan have been transported to Ho Chi Minh City to be shipped to the US.
The longans, grown in Ham Tu and Hong Nam villages in Hung Yen province will undergo irradiation to neutralise plant pests before export.
Despite a modest volume, this good news has encouraged longan farmers to improve the fruit quality.
Ham Tu and Hong Nam villages have nearly 20ha of longan trees planted under the Vietnamese Good Agriculture Practice (VietGap) standards in which farmers only use permitted bio-pesticides and keep spray diaries to ensure longan quality and safety.
Hong Nam village has also cultivated longan on another 170ha with an annual output of more than 2,000 tonnes.
In Hung Yen province, longan trees are grown on more than 3,000ha which give an output of 35,000-40,000 tonnes. The longans are harvested from late July to late September.
The fruits are mainly consumed at the domestic market and a part of them are processed into dried longans to export to China.
Support for Vietnamese IT business in Slovakia
The Vietnamese Embassy in Slovakia has pledged to help the FPT Slovakia, a subsidiary of Vietnam’s IT giant FPT, in expanding its operation in the 2015-2020 period.
A Memorandum of Understanding to this effect was signed by Vietnamese Ambassador to the country Ho Dac Minh Nguyet and FPT Slovakia Director Olaf Wilhelm Baumann on August 19 in Slovakia.
The agreement marks the first cooperation deal between the Embassy with an enterprise, as well as the first between the FPT with an overseas Vietnamese representative agency.
Ambassador Nguyet said the Embassy will provide continuous support for FPT Slovakia and other Vietnamese investors in the country in order to enhance the economic cooperation between the two nations.
In 2014, FPT Corp purchased RWE IT Slovakia, a subsidiary of Slovak energy corporation RWE and set up the FPT Slovakia. This is FPT’s first Mergers and Acquisitions (M&A) in a foreign market, which is the largest Vietnamese investment project in Slovakia.
FPT Slovakia has more than 300 employees and is aiming to become one of the 20 biggest IT companies in Europe by 2020.
Vietnamese tra fish enters Walmart in US
Walmart stores will import and distribute different products of Vietnamese tra fish (pangasius-Vietnam) in its retail chains in the US.
Tran Thi Van Loan, Cuu Long Fish Corp’s CEO, said after negotiations, the company signed a contract to directly supply tra fish products to Walmart from now to the end of this year.
Vietnamese businesses, including CL-Fish Corp have sold tra fish products to US supermarkets over the last three years.
Vietnamese tra fish products are much aought after and now available in 150 countries and territories in the world, Loan said.
Wow! Taiwan Selects to open in HCM City
Wow! Taiwan Selects exhibition will take place at Aeon Mall Tan Phu in Ho Chi Minh City from August 27 to September 2.
The exhibition is expected to lure around 11 Taiwanese businesses to showcase a wide range of products, including coffee, cosmetics, confectionary, motorbikes, footwear, fashion handbags and household utensils.
With coffee as its highlight, the event will target distribution agents and young intelligent workers.
The exhibition is held by the Taiwanese Commerce Development Research Institute (CDRI) and Bureau of Foreign Trade with the assistance of HT Travel - Audio & Video Production Vietnam. Similar events were organised in Thailand and Indonesia.
Vietnam, China seek to push trade ties
Opportunities and shortcomings in economic, trade, investment and tourism ties between Vietnam and China were the main topics at a seminar in Beijing on August 20, aiming to help raise bilateral trade value to 100 billion USD.
The event, jointly held by the Vietnamese Embassy in China and the ASEAN-China Centre, drew nearly 100 representatives from ministries and localities, scholars and entrepreneurs of the two countries.
Addressing the seminar, Vietnamese Ambassador Nguyen Van Tho said the Vietnam-China comprehensive strategic cooperative partnership has enjoyed dynamic developments with cooperation in economics, trade and investment playing an important role.
Given the fast-changing regional and global economic and financial markets, the diplomat suggested the two countries join hands to maintain economic stability in each country as well as the Asia-Pacific region.
The two countries should further tap their cooperation potential and facilitate import-export activities in a bid to balance the bilateral trade, he said.
Statistics released by the Chinese customs show that two-way trade turnover reached 41.8 billion USD in the first half of this year, a year-on-year increase of 16.6 percent. Of the amount, China’s export turnover to Vietnam stood at about 31 billion USD, up 14.8 percent, while its imports from Vietnam were worth 10.8 billion USD, up 22.1 percent.
China has been Vietnam’s largest trade partner for 11 consecutive years. Vietnam also ranks second among ASEAN countries in term of bilateral trade growth rate.
Progresses have been also made in investment and tourism cooperation between Vietnam and China, the seminar heard.
The Chinese side, however, said the imbalance in bilateral trade remains a headache for both countries.
At the same time, growth in investment ties was mainly driven by Chinese investment, most for political reasons, they said, adding the great potential for tourism cooperation is yet to be fully tapped due to lax coordination between the two countries’ tourism agencies.
The participants put forth a host of solutions to push the trade ties, including negotiations to boost China’s import of Vietnamese agricultural and industrial products and increase China’s direct investment in goods production in Vietnam for export to China.
Da Nang airport to have capacity improved
Da Nang International Airport, one of Vietnam’s three major airports, has asked the government for permission to upgrade its capacity to 20 million passengers a year by 2020 under a revised development blueprint.
Deputy Prime Minister Hoang Trung Hai has assigned the Ministry of Transport to verify and approve the revised blueprint for the airport, which also aims to raise its cargo handling capacity to 200,000 tonnes each year.
In addition, the airport will be expanded to cover about 855.57 hectares, accommodating a maximum of 41 planes.
Da Nang airport caters to travel demand to and from the central Da Nang city and neighbouring areas. It also serves as a domestic transit destination.
Currently, more than 100 flights with approximately 10,000 passengers take off from and land at the airport every day.
Property companies coping with VND movements
After the State Bank of Vietnam (SBV) decided to increase the exchange rate band from +/-2 per cent to +/- 3 per cent on August 19 the price of USD at banks in Vietnam increased to VND22,230 (buying) and VND22,440 (selling). The move has put pressure on the VND and may also affect interest rates on loans in the currency.
It will have a negative impact on real estate companies because rising interest rates would increase their financial expenses and reduce profitability. Another issue is that many construction materials real estate companies import will become more expensive when the dollar rises.
According to Ms. Vo Thi Diu Hien, Deputy General Director of the Saigon Thuong Tin Real Estate JSC (Sacomreal), real estate companies should consider opening for sale as soon as possible to take advantage of cash flows from the financial market, welcome investment flows from potential foreign investors, and introduce preferential rates to customers and companies prior to any interest rate increase.
She also said that companies should balance the structure of the materials used in construction by increasing the use of domestic materials to cut costs and be more competitive.
When China suddenly devalued the Renminbi to boost exports a number of countries around the world responded by devaluing their own currency. The move sparked fears of a currency war and created a degree of panic in stock markets. Vietnam’s stock market wasn’t left unscathed, with the index falling.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, believes that real estate will remain a safe investment channel compared to securities and gold. Despite the "ghost month" (lunar July, solar August this year, in which local investors are reluctant to purchase or invest in new projects), some projects have still seen high sales prior to opening.
For example, Sacomreal said last Sunday it will launch 238 villas at the Jamona Home Resort in Ho Chi Minh City’s Thu Duc district at prices starting from VND1.9 billion ($85,500). In the apartment segment, the company will also launch 200 luxury apartments at the Jamona Apartment project in District 7 sooner than expected.
Investors opening for sale at the moment can benefit from two separate factors. On the one hand they may attract cash being withdrawn from the stock market for property investments. On the other hand they can take advantage of foreigners being allowed to purchase housing under the amended Law on Housing, which took effect on July 1. Exchange rate moves will also be favorable for foreign homebuyers.
Vinatex building $6.7 million Quang Binh factory
The Vietnam National Textile and Garment Group (Vinatex) has announced that it is preparing to build a factory to manufacture goods for export in central Quang Binh province on August 25.
The factory will be located at the Cam Lien Industrial Zone in Le Thuy district and is part of Vinatex's plan to rapidly increase its production capacity to take advantage of upcoming free trade agreements.
Built on an area of 6 ha with total investment of about VND150 billion ($6.7 million) and a capacity of 8 million tons per year, the factory includes buildings, lighting systems, a waste water treatment system, and other ancillary items.
The project is divided into three phases. After finishing the first phase it will provide 1,000 jobs. With new equipment the plant will ensure the quality requirements for products being exported to markets such as the US, the EU, and Japan in the future.
It is expected that the first phase will come into operation in March 2016.
Vinatex is currently focusing its investment in the central region, in particular provinces such as Quang Binh and Quang Nam. In March this year it began construction of a fiber - weaving - dyeing – sewing complex in Huong An commune, Que Son district, Quang Nam province, with total investment of VND1.2 trillion ($54 million).
Viet-Thai-Algeria project: Bir Seba oil finally begins flowing to processing facility
The first oil flow from the Bir Seba oil field, a joint project between Vietnamese, Thai and Algerian companies, was pumped into the central processing facility in Algeria on August 12, said deputy director of the PetroVietnam Exploration Production Corporation (PVEP) Ngo Huu Hai.
The project is being implemented through a joint venture between the PVN Exploration Production Corporation (PVEP), Thailand's PTT Exploration and Production Company (PTTEP) and Algeria's state-owned oil and gas company Sonatrach with participating interests of 40 per cent, 35 per cent and 25 per cent, respectively.
Launched in 2002, the project is expected to have an output of 2,900 tonnes of oil, or 20,000 barrels, per day.
The figure will be raised to 5,800 tonnes (40,000 barrels) per day between 2018 and 2021. In its first 25 years of operation, it is expected to produce about 30 million tonnes or 200 million barrels.
Bir Seba Field, located in an inland and desert area 130 kilometres north east of Hassi Messaoud, comprises 16 productive wells, crude oil processing facilities (20,000 bpd), and oil and gas export pipelines.
A joint venture company, Bir Seba Groupment Executive Chung (GBRS), was formed by the parties to take over the administration and operation of the project.
As the first overseas project in which the Vietnamese group participated throughout, right from searching and exploring oil to monitoring oil field development and commercial production, the event is not only being considered a landmark in the development of the Vietnamese oil and gas sector but also marked the effective economic cooperation between Viet Nam, Thailand and Algeria in this area.
The PVEP is a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam). PetroVietnam made its first step to the world oil exploration market by taking part in Tamsaq project in Mongolia in 1999. The first oil batch exploited overseas in 2006 came from Block PM304 offshore Penisular Malaysia, marking its first successful investment overseas.
The PetroVietnam now has 20 exploration and production projects in 14 countries and territories, including the Russian Federation, SNG countries, Middle East, Northern and Central Africa, Latin America and ASEAN countries.
Transport Minister urges pilot social investment in railways
Minister of Transport Dinh La Thang made a field trip to Yen Vien railway station in Hanoi and instructed Vietnam Railways (VNR) to speed up implementation of a pilot social investment project to upgrade the station’s goods yard on Thursday.
The project would create a premise for social investment promotion in railways nationwide, he said.
Minister Dinh La Thang added that the station’s infrastructure system has been outdated and unable to meet requirements of the railways industry' modernization.
He instructed VNR and related sides to give an investment project which will balance benefits between investors and the state and facilitate investors’ works to speed up the Yen Vien station upgrading project.
The project's Investor Railway Logistics Company said it would spend VND90 billion (US$4.02 million) on upgrading the cargo yard, building a management center, buying specialized crane system and management software in the first phase from October this year till June next year.
Once being built, the station’s cargo loading capacity will increase by 3-5 times to become a capable supporter to Hai Phong and Cai Lan seaports and expand transport market share of the railways industry.
Under the project, the company will be permitted to use and exploit a logistics center south of the Yen Vien station within 23 years. It will be eligible to collect container lift charges and other added value service fees to reclaim investment capital and make profit.
Businesses optimise FTA opportunities
Businesses need time to access trade pacts, especially the European-Vietnam Free Trade Agreement (EVFTA) which is expected to bring numerous opportunities and benefits for import-export firms.
Speaking at a press conference in Hanoi on August 20, Head of the International Relations Department under the Ministry of Finance Vu Nhu Thang said 70 percent of businesses have yet to optimise FTA opportunities.
He mentioned Vietnam’s commitments to export duties and financial services in the EVFTA.
He underlined garment-textile and footwear exports to the EU as Vietnam’s strengths, saying once the EVFTA comes into effect, 80 percent of the sectors’ products will enjoy a zero percent tax rate and the remaining will be applied within seven years.
The EVFTA is considered a comprehensive and high-quality trade pact forecast to benefit the two sides, especially regarding potential Vietnamese industries such as garment-textiles, farm produce and timber products.
The EU is currently one of Vietnam’s key trade partners. Trade has increased considerably between 2012 and 2015, topping US$36.7 billion last year.
Many products imported from the EU have helped Vietnam to develop industry, garment-textiles, footwear and means of transport.
The EU is also a major investor in Vietnam with 24 out of the 28 member countries running 2,000 investment projects worth nearly US$ 30 billion in the Southeast Asian nation last year.
Marine resource survey urged to accelerate
Deputy Prime Minister Hoang Trung Hai has urged for the acceleration of a project surveying marine resources and the environment to serve the building of strategies and plans on sustainable economic development and national defence and security at sea.
Speaking at a meeting in Hanoi on August 20 to review the implementation of Project 47 on fundamental investigation and management of marine environment and resources through until 2020, the Deputy PM said while key goals have been met, several component projects are still behind schedule and implementing agencies lack coordination.
The building, verification and approval of component projects has cost too much time and budget allocation failed to meet the work’s requirements. In addition, the purchase of investigation equipment has been slow, hindering the pace of the project.
Deputy PM Hai requested relevant ministries, agencies, and localities take more drastic actions to speed up the implementation of the project.
He urged the Ministry of Natural Resources and Environment to work with the Ministry of Finance and the Ministry of Planning and Investment to ensure capital for urgent and necessary tasks in the middle and long run.
Vietnamese products promoted at Ukraine’s traditional trade fair
Vietnamese enterprises are showcasing their products for the first time at the 2015 Sorochinsky Yarmarok Fair - Ukraine’s biggest traditional trade fair - which is currently underway in Poltava province from August 18 to 23.
The Vietnamese booth is visibly located at the centre of the fair, introducing international friends with the country’s traditional items such as coffee, tea, confectionery and several fine art pieces.
The annual fair, themed “Ukraine - a united family”, covers an area of 16.2 hectares, with more than 1,000 businesses, small traders and artisans showcasing a wide range of products, including industrial products, handicraft and fine arts pieces, and traditional souvenirs from Ukraine’s localities.
A large number of local artists have performed at the fair, creating the animated and colourful atmosphere of a big festival.
Answering questions at an interview conducted by the Ukrainian media, Vietnamese Ambassador to Ukraine Nguyen Minh Tri affirmed that the Vietnamese Embassy plans to continue its participation in the fair in the years ahead on an even larger scale.
Adjustments to Danang Airport approved
Deputy Prime Minister Hoang Trung Hai has issued guidance on adjusting the detailed planning for Danang International Airport to 2020 and orientation to 2030.
He agreed to assign the Ministry of Transport (MoT) to consider and decide on the detailed planning while waiting for an official decree on the management and operation of airports.
MoT was also directed to check and adjust the overall planning to develop the international and domestic airport then report to the PM for consideration and decision.
Danang International Airport is one of three largest international airports in Vietnam, after Noi Bai in Hanoi and Tan Son Nhat in Ho Chi Minh City. It is the main airport serving the needs of international as well as domestic visitors to Da Nang and neighboring provinces, handling more than 100 domestic and international flights with about 10,000 passengers each day.
Located in central Vietnam, Da Nang is the ideal transit point for international routes from east to west and from north to south in Vietnam. The city plays an important role as a transition point for domestic flights from Hanoi and Ho Chi Minh City to other provinces in the central region and as a gateway to other countries for people in the central region.
According to MoT, the Danang International Airport has an area of 855.57 ha and is expected to reach a capacity of 20 million passengers per year and 200,000 tons of cargo per year, on aircraft including B747, B777, B787, A320, A321, and A350.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR

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