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BUSINESS IN BRIEF 30/8
Industrial
production index up 9 pct in August
The
industrial production index in August grew nine percent from the same period
last year, according to the General Statistics Office under the Ministry of
Planning and Investment.
Accordingly,
the electricity and processing/ manufacturing sectors saw their production
increasing by 11.1 percent and 10.6 percent, respectively, followed by water
supply and waste treatment industry at 9.4 percent. A modest rise of 2.8
percent was seen in the mining industry.
The
August
also saw the birth of 9,301 enterprises across
VinEco
builds greenhouse in Vinh Phuc
VinEco
company, a Vingroup subsidiary, broke ground on a greenhouse in northern Vinh
Phuc province on August 28.
Applying
technology from the Israeli Teshuva Agricultural Projects, the 24.5-hectare
construction is valued at nearly 1 trillion VND (44.6 million USD).
Once
operational, the facility is expected to produce 3,500 tonnes of vegetables
annually that satisfy criteria set by the Vietnamese Good Agricultural
Practices (VietGap) and GlobalGap.
The
vegetable products will make their market debut across the Vinmart supermarket
and convenient store chains within this year’s fourth quarter. The company
also targets nationwide distribution and export.
After
the first greenhouse in Vinh Phuc, the second – covering 30 hectares – is
scheduled to be built in
A fair
featuring
The
fair aims to promote the agricultural sector and introduce the city’s
outstanding achievements while creating an opportunity to expand cooperation
as well as bridge manufacturers, enterprises and consumers both at home and
abroad.
The
event is expected to feature around 200 booths showcasing hi-tech and green
agricultural products, tools, equipment and techniques of leading businesses
in
It
will also include several trade promotion and communication activities such
as seminars on promoting agricultural trade and trade promotion programmes
between
PM
okays to regional market development project
The
Prime Minister has approved a project to develop regional markets from
2015-2020.
The
project seeks to increase the market share of locally-made products in
traditional markets such as Southeast Asia, Northeast Asia (
It
aims to diversify export outlets, especially promising markets like Africa,
Latin America, the Middle East and
As
planned, local businesses will promote trade in both traditional and new
potential markets while deeply engaging in the distribution systems of
regional markets, particularly in
It is
important for enterprises to optimise opportunities for market expansion via
tariff reduction and removal of non-tariff barriers to promote exports, as
well as improve shipments to markets that have signed free trade agreement
(FTA) with
Equally
essential is pushing ahead with bilateral and multilateral trade negotiation activities,
facilitating exports of local staples and attracting foreign direct
investment from developed countries with signed FTAs in a bid to receive new
cutting edge technology and increase competitiveness for intensified
involvement in the global goods supply chain.
The
project suggested enacting measures to support businesses to join trade
promotion activities in overseas markets, especially at trade fairs, to seek
key trade partners and develop Vietnamese goods under the National Brand
Programme.
It is
also necessary to step up market surveys and bring made-in-Vietnam goods to
new markets in Africa and Latin America together with potential ones in
northern and eastern Europe, the Commonwealth of Independent States (SNG),
the southern Pacific Ocean region (East Timor, Palau, and Vanuatu), the
northeast region (Mongolia and the Democratic People’s Republic of Korea) and
some states in the central US.
Studying
and building strategies to expand and stabilise export markets for key
products in each period is recommended along with encouraging and supporting
businesses to join and increase comprehensive cooperation in major overseas
production and distribution networks.
50,000
products on sale for online shopping day
As
many as 50,000 products in various categories are on sale at the website
www.OnlineFriday.vn during August 28, according to the Vietnam E-Commerce and
Information Technology Agency under the Ministry of Industry and Trade.
The
fall online shopping day is to prepare for the upcoming 2015 Online Friday
slated for December 5.
A
majority of the items are electronic products offered by more than 500 major
brands in
More
than 2,000 items will be showcased in the BigOff shopping event from 17:00 –
20:00 in the
Consumers
making online purchases at the event will receive special discounts, free
shipping and other incentives from participating businesses.
Director
of the agency Tran Huu Linh said the Online Friday programme aims to
encourage Vietnamese to buy domestic products as well as to promote
e-shopping practices.
On the
occasion, the agency also selected the best logo for Online Friday in a
contest launched from July 16 – August 7 this year. First prize went to Dang
Van Nam from
During
the first Online Friday held on December 5 of last year, traders recorded
sales worth 7.5 million USD. Its website www.onlinefriday.vn counted over 10
million hits.
This
year, the ministry expects to see the participation of 2,500 traders with
roughly 15,000 discounted items, generating 25 million USD – tripling last
year’s figure.
Reforms
needed to keep economy alive and thriving
More
institutional reforms are needed to help the Vietnamese economy maintain its
development momentum, heard a conference in
Addressing
the event, Minister of Planning and Investment Bui Quang Vinh said that after
nearly 30 years of reform,
However,
the state of the economy in recent years shows that there is little room for
development left from the renewal process, which began in 1986, and that many
big institutional obstacles have surfaced in its wake, he noted.
Existing
economic institutions vary from those of market economies in Europe, the
According
to
Nguyen
Dinh Cung, Head of the Central Institute for Economic Management ( CIEM ),
said
He
mentioned restructuring the budget and increasing investment as solutions to
economic institutional reform in the coming time.
The
Government needs to take measures to improve the business environment and
national competitiveness, added Cung.
According
to Associate Professor Dr. Bui Tat Thang, Head of the Development Strategy
Institution,
Meanwhile,
Mai Thi Thu, Director of the Information Centre and Social-Economic Forecast,
emphasised the need to ensure equality in supply and access while clearly
defining the State’s role in each stage of supplying.
To
develop local human resources, a representative of the General Statistics
Office (GSO), said it is necessary to establish the National Productivity
Committee as well as build and implement a national strategy on improving
labour productivity.
GSO
statistics show that
Ministry
gives social housing another push
The
Ministry of Construction recently asked local authorities nationwide to
quicken the building of social housing, in a bid to comply with the national
housing development strategy.
Among
the requests was to simplify administrative procedures in determining which
borrowers were eligible for preferential loans from the Govern-ment's VND30
trillion (US$1.33 billion) support package for the realty market.
In
addition, coordination with the State Bank of
Further,
the measures seek to guarantee that the assistance package helps those people
it was intended for, as well as developers, and to speed its disbursement,
according to the ministry.
Statistics
from the ministry's Housing and Real Estate Market Management Department
indicate that, as of the end of July, only one-third of the support package
had been disbursed, some two years after having been implemented.
Involved
commercial banks committed to loan more than VND17 trillion ($755.55 million)
from the support package, as of July 30, to 24,150 households and 43
developers, with more than VND10 trillion ($444.44 million) having been
disbursed.
In
order to support developers of social housing projects, the construction
ministry said administrative reforms must be improved to create advantageous
conditions for developers in converting commercial housing projects into
social housing projects.
Regarding
converted projects that have already been approved, construction must be
quickened to prevent wastes of land and financial resources, the ministry
advised, adding that official approval for projects seen as lagging would be
revoked.
The
ministry also urged developers to complete legal documents for social housing
projects to allow early granting of home ownership certificates to buyers.
To
date, the construction of 102 social housing projects were completed, while
150 others are underway, throughout the country.
Minister
of Construction Trinh Dinh Dung, on a television programme broadcast last
month, said low-income housing projects still lagged far behind demand due to
the lack of funds and incentives.
The
country needs an estimated 200,000 apartments for low-income earners by 2020,
adding to the 700,000 units built during the 2012-15 period.
Besides
Ha Noi and
After
five years of carrying out the social housing development programme, Binh
Duong Province has seen construction of 82 social housing projects offering
85,070 units and valued at more than VND19 trillion ($848.214 million), which
was to provide housing for more than 238,000 people.
To
date, 22 social housing projects were completed in the province, supplying
housing for nearly 37,000 people. Also, 34 projects with living space of more
than 1 million sq. metres was expected to be completed by the end of this
year.
However,
many projects have not been completed or are only partially built. Difficult
access to the Government's preferential loan package, coupled with lack of
incentives and low profits, were discussed as causes for developers'
hesitation to join the social development programme.
New
criteria needed to classify SOEs
It is
necessary to tweak the criteria for classification of State-owned enterprises
(SOEs) to speed up their equitisation and improve their efficiency, a
workshop in Ha Noi yesterday heard.
The
workshop was organised by the Ministry of Planning and Investment to discuss
the draft of a proposal on amending the criteria for classification of SOEs.
Le
Manh Hung, deputy head of the Ministry of Planning and Investment's business
development department, said the approved road map for SOE restructure
required 479 enterprises to be equitised in 2014-15.
But
only 251 had been, meaning the number remaining to be sold or equitised in
the next few months would be very large, he said.
Creating
new criteria was also key to meeting the changed circumstances related to
restructuring and renovating SOEs, he said.
The
draft decision requires the Government to own 100 per cent stakes in
companies only in 14 sectors and industries, down from the current 16.
They
include defence and security; production and distribution of industrial
explosives and toxic chemicals; the national power grid; nuclear power plants
and hydropower plants of exceeding importance for socio-economic development
or related to defence and security; management of rail infrastructure and
transport; flight protection; maritime protection; post and telecommunications;
lottery; publishing; and preferential loans for socio-economic development.
The
two areas that go out of the list are management and protection of watershed
forests, protective forests and special forests, and enterprises that hold
business secrets and technological secrets, which will now be governed by
other legal provisions.
In
other stipulations in the draft, the Government should own 65 per cent of
enterprises in sectors related to key infrastructure that impact
socio-economic development (major ports, airports and telecom) and natural
resources (minerals, petroleum) and those with the task of ensuring macro
balance of the economy and stabilising the market (food, fuel, gas, and
electricity).
It
should also own more than 50 per cent but less than 65 per cent of
enterprises mainly engaged in providing public services and goods – like
urban drainage, environmental sanitation, urban lighting, oil and gas
processing, and finance and banking (exclusive of insurance, securities and
fund management companies, finance companies, and financial leasing
companies).
The
draft will soon be submitted to the Government for approval and is expected
to take effect later this year.
Export
values drop by 4.8%
The
agro, fishery and forestry export value, in the first eight months of 2015,
fell by 4.8 per cent over the same period last year to US$19.31 billion.
The
figure includes $2.38 billion earned in August, the Ministry of Agriculture
and Rural Development reported on Thursday.
During
the first eight months of this year, the export value of farming products saw
a year-on-year reduction of 7.7 per cent to $10.88 million, of which rice,
rubber and coffee experienced the strongest falls in export value.
Rice
exports to the tune of 4.09 million tonnes brought home $1.76 billion, down
15 per cent in value and 8.6 per cent in volume.
In
eight months, coffee shipments reached 874,000 tonnes for an export value of
$1.79 billion, down 33 per cent in both volume and value against the same
period last year.
Meanwhile,
rubber exports in the eight months stood at 632,000 tonnes for nearly $922
million, marking 11 per cent growth in volume but a 10 per cent decline in
value over the same period last year.
Exports
of tea also saw a drop of 5.6 per cent in volume to 79,000 tonnes and 4.8 per
cent in value to $134 million compared with the same period of last year.
Pepper
saw a plunge of 21.7 per cent in export volume to 104,000 tonnes but a slight
reduction of 1 per cent in value due to a surge in export value by 28 per
cent to $9,373 per tonne of pepper against the same period last year.
However,
cassava exports gained growth of some 30 per cent in volume to 3.05 million
tonnes and 26 per cent in value to $951 million in the first eight months.
Cashew
exports also achieved a year-on-year increase of 8.4 per cent in volume to
214,000 tonnes and 22 per cent in value to $1.55 billion for the eight
months.
The
ministry said the national seafood export value fetched $4.13 billion, down
17.5 per cent year-on-year. The
The
seafood exports to
However,
exports of Vietnamese seafood achieved strong growth of 19 per cent for
The
The
two export markets with the highest growth in export value were the
Big
surge in rice exports to Africa
In
addition, the figure accounts for nearly 16 per cent of the country's total
rice export volume.
According
to the Ministry of Industry and Trade's Department of African, West Asian and
South Asian Markets, major Vietnamese rice consumers include
The
department attributed the surge to the lower price of Vietnamese rice
compared with rice from
On the
other hand, the export volume of fragrant rice and high-quality rice to
African markets had also increased, instead of just white rice exports, as
had previously been seen.
Meanwhile,
in the Middle Eastern market,
Property-guarantee
barriers remain despite new circular
Issues
relating to banking guarantees for future property purchases remain, even
though Article 56 of the Law on Real Estate Business came into effect two
months ago.
Following
the article coming into effect, property developers, before selling or
leasing unfinished properties, must now obtain guarantees from eligible
commercial banks as assurances of their financial obligations to buyers.
The
purpose of the article is to protect homebuyers. If property developers fail
to hand over apartments to buyers, despite commitments, banks will be
responsible for returning a buyer's money, in line with signed contracts. In
addition, this will help improve the sense of responsibility of investors.
There
are two forms of guarantees, trust loans and mortgages. It is easy to grant
mortgages for both property developers and banks.
The
State Bank of
However,
there are no estate projects in Ha Noi receiving guarantees from banks, as
Circular 07 and the Law on Real Estate Business reportedly have conflicts.
The reason was that the law required guarantees be given before signing
housing purchasing contracts, while the circular asked home buyers to have a
signed contract before approving guarantees.
Several
customers came to Hoang Vuong Property Transaction Floor to purchase
apartments. However, they said they were afraid of projects that were not
guaranteed.
Ta
Phuc Hai, the company's director, said investors who did not have bank
guarantees would cause home buyers to hesitate, while businesses had to stop
the sales to wait for guidelines from the central bank.
"We
have been denied the opportunity to sign guarantee contracts with banks for
our project, though we work with several banks," he said.
Meanwhile,
lawyer Tran Minh Hai, director of Basico Law Firm, said the basic
characteristic of the guarantee was to assure participation by three parties,
including the bank, investor and home buyer. However, the revised law
required the guarantee be implemented before the sale, or there would be no
buyers, while banks could not violate their guarantee regulations.
Sharing
his ideas, Huong Tran Kieu Dung, general director of property developer FLC
Group, told Viet Nam News that when a bank gave guarantees for a large
project, their risks would be higher and they could face difficulties in
money flows.
The
guarantee would be for several categories, as a property project often is a
complex of apartments, retail stores and offices.
In
addition, estate investors would also find it difficult to meet the
requirements of financial ability and project progress from banks, to become
eligible to receive the guarantee.
"I
wonder whether a property project needs to be guaranteed if an investor has
prestige in the market and receives the trust of home buyers?" Dung
asked.
She
added that the guarantee should not be required for entire projects. Instead,
the guarantee would be given to customers who request it.
"I
think this could help banks reduce money flow pressures, while investors
could also reduce unnecessary costs," she noted.
Five
more banks to guarantee investors
The
State Bank of Viet Nam named five more banks on Thursday that qualify for
guaranteeing property investors, following issuance of regulations on the
realty trading law. The banks are Sacombank, Kien Long Bank, Nam A Bank, as
well as Orient Commercial Bank and Viet Nam International Bank.
The
newly revised Law on Real Estate Business, which took effect on July 1,
stipulates that property investors can sell or rent houses only with the
underwriting of commercial banks.
The
Ministry of Construction said such regulations aim to protect the interests
of homebuyers, whose advanced money will be refunded if investors fail to
assure the completion of their projects.
Earlier
this month, the central bank listed 33 banks that offer such property
guarantees. These included foreign lenders such as HSBC Viet Nam, Standard
Chartered, Indovina Bank, along with Vinasiam Bank and
The
central bank has also issued a circular regulating bank property
underwriting, without specifying how it selects qualified lenders.
Most
HNX firms see profit in Q2
About
86 per cent of the 357 listed companies on the Ha Noi Stock Exchange (HNX)
made profits in the second quarter of this year.
The
companies made a total profit of VND4.3 trillion (US$191 million), a slight
increase over last year.
The
high ratio of profit-making reflects the positive performance of the
macro-economy.
Among
307 profit-making companies, 99 industrial producers recorded the highest
profit of nearly VND2 trillion ($88.4 million).
Twenty
five mining and energy firms recorded a sum profit of VND974 billion ($43.3
million) (22.7 per cent of the market total), followed by the finance sector
with a sum profit of VND927.8 billion ($41.2 million, 22.7 per cent of the
market total).
Other
sectors contributed about 30.2 per cent of the market total profit, equal to
VND1.3 trillion ($57.8 million).
Forty
nine listed companies or 13.7 per cent of all listed companies on the HNX
reported losses in the second quarter – a decrease of 1.1 per cent from last
year's figure. Total losses were VND220 billion ($9.78 million).
Among
them, traders and service suppliers made the highest loss of VND51.7 billion
($2.3 million). This was equal to 23.4 per cent of the market's total losses.
Following
this, construction companies recorded a sum loss of VND43.2 billion ($1.92
million, 19.6 per cent of market losses).
Nine
other sectors accounted for more than half of the market total loss of
VND125.5 billion ($5.6 million).
HNX
reported that listed companies that were not parent companies had to publish
their second quarter financial reports on July 20. Parent companies had to do
so on August 14.
According
to HNX, 357 listed companies need to publish their financial reports for the
second quarter of this year. Up to August 25, only one of them had not
published the company's report.
Under
the regulations of HNX, the company may be warned, suspended or removed from
the stock market because of its late submission.
With
Israeli tech, Vingroup goes green
Leading
property developer Vingroup through its wholly owned subsidiary VinEco is
getting ready to change the way
On
August 28, VinEco officially kicked off construction of a VND1,000 billion
greenhouse, the first of its kind in Vietnam, in the northern province of
Vinh Phuc, which will produce organic vegetables and sprouts compliant with
VIETGAP and GLOBALGAP standards.
Vingroup
is putting its money and tech talents into farming – the world’s oldest
business – with an audacious and ambitious plan to bring high-tech
agriculture to
Currently
the company has laid plans to expand this technology into three districts of
Vinh Phuc province on a total area spanning more than 24.5 hectares using
technology by Teshuva Agricultural Projects (TAP) in
The
greenhouse is expected to be operational by the fourth quarter of the year,
producing 3,500 metric tons of organic vegetables annually to be sold through
Vinmart supermarkets and stores nationwide.
The
launch of the ASEAN Economic Community (AEC) in four months will be a
critical moment for
But
it’s more than just the 10 member states of ASEAN that
Director
Nguyen Thu Trang of the World Trade Organization (WTO) Centre said most
business men and women in
“They’ve
failed to take advantage of even the existing benefits that ASEAN offers,”
Trang said.
The
same is true for other free trade agreements that the nation has entered into
as surveys show that overall 67% of respondents said they have never
benefited from lower tariffs from any free trade agreement.
On the
omnipresent rules of country of origin labelling required by ASEAN and the
modalities for complying with them – most businesses are utterly inadequately
prepared, Trang stressed.
Over
the past few years, trade between Vietnam and other ASEAN+3 nations should
have increased as businesses formed alliances with their counterparts in
other member nations in preparation for the AEC, said Dr Nguyen Anh Thu of
the Vietnam National University.
In
turn that would have placed them in good stead to compete in other global
markets such as the
In
addition, businesses have not sufficiently focused on increasing the capacity
of their staff with continued education and training that would position them
to move up the supply chain value ladder.
Most
Vietnamese businesses have been content with taking low level assembly line
or other labour intensive work trying to capitalize on the nation’s lower
salaries, wages and natural resources, Thu underscored.
This
type of work is on the lower rung of the supply chain ladder and businesses
need to adequately plan and prepare to climb up that ladder by using superior
knowledge and innovation in manufacturing.
To
corroborate his comments that the two major problems that Vietnam currently
faces are the lack of adequately trained workers and low labour productivity
Thu, cited the nation’s low 2014 competitive capacity ranking of 99 out of
144 countries.
“The
stark reality is that Vietnamese businesses thus far have done little to make
arrangements with their counterparts in ASEAN+3 to solidify the trade bloc
and bring about a more competitive region.
IIP
rises 9.9%
In the
first eight months of this year the Index of Industrial Production (IIP)
increased 9.9 per cent year-on-year, according to the General Statistics
Office (GSO).
In
particular, mining, processing and manufacturing, producing and distributing
electricity, and water supply, wastewater, and garbage treatment rose 8,
10.4, 11.4, and 6.9 per cent, respectively.
Several
manufacturing sectors saw significant growth, such as 40.2 per cent for
electronic items and optical computers, 30.1 per cent for motor vehicles, and
12.1 per cent for non-metallic minerals.
Strong
growth was also seen in automobiles, of 59.2 per cent, mobile phones, of 58.1
per cent, TVs, of 39.4 per cent, and footwear, of 24.7 per cent.
Some
sectors saw only slight increases, such as 8.4 per cent in furniture
manufacturing, 8.3 per cent in exploiting crude oil and natural gas, 7.6 per
cent in food processing, and 5.8 per cent in coal exploitation.
A
number of cities and provinces saw high IIP, such as Thai Nguyen with 193.6
per cent, Quang
Sales
in the first seven months grew 13.3 per cent year-on-year. The highest growth
was seen in sectors such as electronic items and optical products, at 38.9
per cent, motor vehicles, at 29.9 per cent, and metal and steel, at 23 per
cent.
More
Authorities
in the Mekong Delta
Speaking
at a meeting between the two province’s officials last week, a spokesman of
the Tra Vinh People's Committee said the park will seek to develop Tra Vinh
into a centre for processing farm and forestry produce and aquaculture and
one that consume these materials produced by the delta's 13 provinces.
The
VSIP model, which has been embraced by many localities across the country,
has helped attract investments, he said.
The
VSIP, built by a joint venture between Singaporean Sembcorp Development and
Vietnamese developer Becamex IDC, was first built in Binh Duong and then Nghe
An and Quang Ngai provinces.
Nguyen
Van Hung, President of Becamex, told Tra Vinh officials about his company's
experience in signing deals with Singaporean partners, building VSIP in other
provinces, and what Tra Vinh should do when building a similar.
The
three VSIPs have managed to attract a lot of foreign direct investment, he
added.
Agribank
offers businesses 887 million USD credit
The
Vietnam Bank for Agriculture and Rural Development (Agribank) has decided to
provide a credit package worth 20 trillion VND (887 million USD) with a
preferential interest rate for businesses.
The
fund targets business customers on the occasion of the upcoming National Day
(September 2) with a maximum annual interest rate of 5.5 percent.
The
programme is aimed at providing short-term mobile loans for businesses'
production and trade projects and mid- and long-term loans for implementing
their investment projects.
The
fund is available for enterprises between August 21 and December 31.
Agribank
is the largest commercial bank in
BIDV
expands network of Japanese customers
The
Bank for Investment and Development of Vietnam (BIDV) on August 24 signed a
pact with Kyoto Bank on serving its Japanese business clients operating in
Accordingly,
the two banks will coordinate finance and banking services catering to the
target customer demand, including bank accounts open and management, credit
offering as well as domestic and international payment.
Their
consultations on investment climate and policies towards foreign businesses
in
As of
March 31, 2015, Kyoto Bank recorded approximately 68.59 billion USD in total
asset value.
To
date, there have been 20 Japanese banks sealing similar deal with BIDV.
FPT
Software to expand into Japanese market
The
central city plans to cooperate with the Da Nang FPT Software company in
conducting a Japanese language training programme for information technology
(IT) students at colleges throughout the city.
The
programme seeks to provide 1,000 IT engineers with standard Japanese language
skills in a bid to boost the market in
Phuong
said the programme will be a strategic step to expand the IT export market
and expand connections with the Japanese IT market.
"The
Japanese market has been responsible for major revenues for the company over
past decade. It has accounted for 70 percent of the company's annual
revenues," Phuong said.
"The
company has 1,400 staff members, of which 100 IT engineers are fluent in
Japanese. We want to increase the numbers of IT staff to 10 times the current
figure as part of our market expansion target," he said, adding that the
company hopes to create 10,000 jobs by 2020.
Following
completion of the programme, students will be recruited by the company and
paid a favourable salary.
Also,
according to FPT Software, the programme has sent 150 trainees to
The
industrial production index of
In the
eight-month period, the manufacturing of transformers with capacity less than
650kVA recorded the highest growth of 41.3 percent, followed by motorised
vehicles and spare parts with respective increases of 40.9 percent and 32.9
percent.
The
production of construction rocks surged 31 percent, furniture up 30.3
percent, and medicine-pharmaceutical chemistry up 25.7 percent.
The
surging industry was also contributed by a significant growth in the
production of paper and wooden products, costumes, fridges, ranging between
17.1 percent and 19.3 percent.
A
modest increase of 11.2 percent was witnessed in the production of non-metal
materials while chemicals and commercial electricity saw the same rise of 9
percent in the period.-
Vietnam
sees 52 percent surge in rice export to Africa
According
to the Ministry of Industry and Trade’s Department of African, West Asian and
South Asian Markets, major Vietnamese rice consumers include
The
department attributed the surge to the lower price of Vietnamese rice than
those of
Meanwhile,
in the Middle East market,
Over
the past five years, the country has been experiencing something of an
industrial renaissance— creating millions of jobs with output growing at the
fastest pace ever, according to official statistics.
Looking
across the nation, the industrial expansion has been a key element to
boosting six local economies to reach the US$6 billion benchmark in exports
in the first seven months of the year.
Total
combined revenue of the six localities achieved nearly US$64 billion.
Measures
to resolve difficulties and support business and investment activities of
overseas Vietnamese (OV) enterprises were discussed in a conference held in
Co-hosted
by the Investment and Trade Promotion Centre of HCM City (ITPC) and the
municipal Committee for Overseas Vietnamese Affairs, the event included an
open dialogue between over 70 OV entrepreneurs doing businesses in the city
and local officials including those from the Departments of Customs and Tax.
According
to Deputy Director of the city’s Committee for Overseas Vietnamese Affairs
Nguyen Truong Nhan, the business community is showing great interest in the
city’s investment climate, businesses and preferential policies in customs
and taxation.
The
event was also a great opportunity for enterprises to meet officials of the
city’s departments and industries to seek answers to problems they counter in
manufacturing and business activities, he added.
Issues
discussed at the event focused on value added tax (VAT) for import-export
goods, tax and customs declaration, and tax payment.
Local
authorities agreed to intensify supporting activities for enterprises
conducting business in the city through specific solutions.
In
recent years, businesses run by OV entrepreneurs have actively contributed to
the city’s economic development. In July, overseas remittances sent to the
city reached 2.42 billion USD.
Hanoi
products to re-enter East Europe via Czech Republic
Representatives
of
Opening
the trade promotion workshop, Director of the Hanoi Department of Industry
and Trade Le Hong Thang noted the textile and garment industry is currently
the second biggest hard currency earner of
Thang
said their visit to the
Chairman
of the Czech Republic-Vietnam Friendship Association Marcel Winter said
Both
Thang and Winter agreed that
In
recent years, bilateral trade ties have seen positive growth but remain
limited in relation to their potential.
The
Livestock
sector urged to enhance competitiveness
Minister
of Agriculture and Rural Development Cao Duc Phat urged the livestock sector
to enhance the competitiveness of chicken farming during a workshop in
Minister
Phat asked the Department of Livestock and the Department of Animal Health to
map out immediate tasks to enhance the sector’s competitiveness from
2015-2020.
He
also called on relevant bodies to strengthen their supervision of food
safety, cut irrelevant fees and costs, develop technical barriers in line
with international practices and expand markets for domestic products.
Director
of the Department of Livestock Hoang Thanh Van said domestic chicken farming
remains inefficient and attributed it to individual household farming
practices and low quality breeding.
Van
suggested that relevant bodies strengthen monitoring of chicken breeding,
promote variety brand names and select suitable varieties for specific areas
to enhance production efficiency.
He
also called for improved connections among producers, processers and
consumers.
Meanwhile,
Director of the National Institute of Animal Sciences Nguyen Thanh Son
pointed to the continued reliance on imported feed, young chickens and
medicine, saying the dependence on foreign imports raises production costs.
According
to the Department of Livestock, poultry production has seen an annual
increase of 9.31 percent in output.
This
year, it is expected to produce 826,000 tonnes of poultry meat, 60 percent of
which will be produced by household farms.-
Seminar
discusses spurring support industry
The
Central Institute of Economic Management (CIEM) held a workshop on August 21
to enhance linkages between domestic and foreign businesses and boost the
development of the support industry in service of six industrial sectors
prioritised in
Speaking
at the
According
to her, the support industry plays an important role as it supplies
components and materials serving the two sectors.
Do Thi
Thuy Huong from the Vietnam Electronics Business Association (VEBA) said the
electronics support industry is mainly driven by foreign direct investment
(FDI) businesses included in the available supply chain of final equipment
producers.
Very
few Vietnamese enterprises have the capacity to supply spare parts and
services to FDI firms operating in the country, she said.
The
domestic support industry has fallen short of expectations as it has failed
to meet the demands of original producers, resulting in low added value of
the country’s electronics sector in comparison with that of other nations
worldwide, Huong said.
Sharing
her views, Dr. Nguyen Dinh Anh said incentives for the support industry
remain monotonous and funding is limited in terms of both scale and
accessibility.
He
underlined the need to revamp preferential policies, explaining that it is
impossible to boost the support industry with such policies, especially in
the six prioritised sectors, and create a linkage between Vietnamese and
Japanese businesses as set in the strategy.
Many
suggested the State build a full legal framework favourable for the industry
as well as businesses participating in this field, and finalise and issue the
Government’s decrees on the sector.
The
State should enhance management of environmental protection and energy
conservation in order to create output markets for the environment,
energy-saving and support industries, they said.
The
VEBA proposed tax exemptions for materials and import equipment to serve the
production of key mechanics items and the exemption of corporate income tax
and land lease fees for projects that supply support products to high-tech
sectors.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Chủ Nhật, 30 tháng 8, 2015
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