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BUSINESS IN BRIEF 4/8
EVN
calls for saving electricity for fear of thermal power difficulties
The
Vietnam Electricity Group (EVN) has called for electricity conservation as
some of its thermal power plants are facing difficulties due to the drop in
coal production because of flooding in
Many
coal companies in Quang Ninh face big losses after the big flooding.
EVN
said that, from July 25 to July 30,
Landslides
and flooding cut access to coal mines in Cam Pha and Hon Gai, which affected
supply to Coastal Thermal Power Plant No. 1 and Vinh Tan Thermal Power Plant
No. 2.
Coal-fired
plants of EVN only have enough coal to operate for about five days, although
the Uong Bi Thermal Power Plant has a 20-day stockpile.
In the
next days, the Vietnam National Coal and Mineral Industries Group (VINACOMIN)
will focus on opening roads in Hon Gai and Cam Pha, with a focus on Coastal
Thermal Power Plant No. 1 and Vinh Tan Thermal Power Plant No. 2.
The
Ministry of Industry and Trade urged Vinacomin and EVN to boost electricity
generation from all hydropower and power plants nationwide to ensure
uninterrupted supply.
The
Vietnam Coal and Mineral Industries Group (Vinacomin) said on July 29 the
torrential rains in
Jan-Jul
auto, part imports put at US$3.4 billion
Imports
of completely built-up (CBU) autos and auto parts have amounted to US$3.4
billion in January-July, soaring 88% against the same period last year,
according to the General Statistics Office (GSO).
The
GSO’s data showed 65,000 cars worth US$1.72 billion have been imported into
The
January-July auto imports are higher than last year’s total of US$1.57
billion and more than doubled 2013’s US$709 million.
CBU
autos are among the imported products with strong revenue growth in the first
seven months.
Auto
assemblers reported good business results in the first months of the year. As
the ratio of local content in automobiles is still small, automakers had to
import large volumes of parts for domestic assembly.
According
to the GSO, in addition to the US$1.72 billion CBU auto imports,
The
combined turnover of imported autos and auto parts from January to July is
equivalent to the period’s estimated trade deficit of US$3.4 billion.
Most
automakers have not revealed their January-July business results but their
sales volumes in the first half were high.
Data
of the
If
sales growth is maintained, auto sales in all of 2015 can reach 200,000
units. Demand for autos is traditionally higher in the final months of year.
Local
leader at Hong Leong Bank
The
board of directors of Hong Leong Bank
Tam,
who has over 20 years of experience in the local financial sector, has served
as general director of the Malaysian bank since January 1, 2014 and would be
replaced by a Malaysian national from September.
Speaking
to the Daily, Tam confirmed his resignation and pointed out the limited
ability of foreign banks in reaching out to more Vietnamese customers as one
of the reasons behind his resignation.
With
chartered capital of VND3 trillion, Hong Leong is one of the five 100%
foreign-owned banks in
In
legal terms, banks with 100% foreign ownership have the same treatment as
domestic banks but these foreign-owned banks still face a number of barriers.
Nonetheless,
Tam
said the banking sector still holds great growth potential in terms of customers
and products. With a young population and high Internet and telecommunication
penetration rates in urban areas, the e-banking service segment will fare
better.
Tam
and HSBC Vietnam CEO Pham Hong Hai are the two Vietnamese employed to lead
100% foreign-owned banks in the nation.
The
government of HCMC has proposed the Prime Minister cut the price of ethanol
and partially support E5 gasoline production and distribution costs to spur
sales of this bio-fuel.
To boost
sales of E5, a type of petrol mixed with 5% ethanol, the city government
wrote to the Prime Minister on Monday asking for incentives such as amending
the regulations on the assessment, certification, use of additives and
standards on gasoline production.
Currently,
there are nine major fuel wholesalers having six general agents and 514
retail stores in the city. In November last year, 58 local gas stations began
selling E5 but the number had risen to 155 by June this year.
Average
E5 sales from November to June reached 4,500 cubic meters per month,
accounting for a mere 3% of total fuel sales in the city.
The
city is on target to increase the total number of stations selling E5 to 171
by end-September and 514 in late November.
However,
fuel wholesalers said it is difficult to speed up consumption of E5 as it is
new to consumers. Local fuel trading firms are hesitant to sell this bio-fuel
as they have to spend much on new filling stations and are concerned that low
sales would cut into their profit.
Earlier,
Deputy Prime Minister Hoang Trung Hai urged local agencies and fuel
wholesalers to accelerate construction of E5 mixing facilities and expand the
pumping station network to serve more customers.
In
early July, the city government drew up a roadmap to force State agencies and
enterprises to use E5 gasoline for their automobiles.
New
tra fish development scheme sought
Le
Vinh Tan, deputy head of the Party Central Committee’s Economic Commission
has underscored the need to draw up a scheme to build a strong tra fish
industry and diversify its products.
The
slowdown of the tra fish industry and the country’s deeper international
integration require it to be restructured for better performance, Tan said on
the sidelines of a seminar in Can Tho City on July 30 on solutions to boost
tra fish production and consumption.
The
value of tra fish is higher than that of many other agro-aqua products as
with less than 6,000 hectares of farmland, tra fish could bring annual export
turnover of US$1.8 billion, Tan said.
According
to data of the Vietnam Pangasius Association,
Tan
said enterprises needed to understand specific demands of each importing
market to provide suitable products.
Exported
tra fish products of
Besides,
cooperation among tra fish enterprises remains weak and they are often
embroiled in price cut races, Tan said.
Vo
Hung Dung, general secretary and vice chairman of the association, said many
agencies have prepared development schemes for key projects of the Mekong
Delta region, including tra fish. However, resources would be a big
challenge.
The
new development scheme should focus on building brands instead as issues
concerning production and quality improvement were already included in a
Government decree on tra fish, Dung said.
In
addition, it is necessary to survey markets such as the EU, the
Enterprises
currently buy unprocessed tra fish at VND20,000-21,500 per kilogram, heard
the seminar. With such price levels, farmers incur losses of VND1,000-1,500
per kilogram.
The
government of
According
to the city’s Decision No. 3415/QD-UBND, the projects include supermarkets
and trade centers in
These
projects will be partially funded by the city’s budget. The city government
will also raise funds from joint ventures, and foreign and local investors
for the projects.
Tran
Thi Phuong Lan, deputy director of the Hanoi Department of Industry and
Trade, told reporters recently that
The
new supermarkets include 23 of Grade A ranking, 100 of Grade B, 865 of Grade
C. They will be located at basements and ground floors of buildings in
innercity areas while traditional wet markets in the city center will be
upgraded to incorporate supermarkets and commercial centers.
According
to the Hanoi Department of Industry and Trade, the city now has 135
supermarkets and 28 commercial centers. Therefore, the city will have to
build 864 new supermarkets and 36 commercial centers as envisaged in the
zoning plan.
The
zoning plan for trade centers is part of a master zoning plan for
socio-economic development until 2020 with a vision towards 2030 in
Vietcombank,
VNA to collaborate in several fields
Vietcombank
and national carrier Vietnam Airlines (VNA) signed a comprehensive
co-operation agreement in Ha Noi on July 30.
Representatives
of Vietcombank and Vietnam Airlines sign a comprehensive co-operation
agreement in Ha Noi. Photo VNA
Under
the agreement, the two parties will establish long-term, comprehensive and
effective co-operation in several fields. Vietcombank will provide VNA
diversified banking and financial service products with preferential
policies, such as monetary and capital source management, commercial support,
international payments and issue of letter of credit, guarantees, cards and
services related to corporate finance and the stock market.
Meanwhile,
the carrier will offer preferential policies to passengers, goods, luggage
and parcels from Vietcombank. The airline will also allow the bank to finance
and invest in its subsidiaries.
The
two sides said they would implement an overall marketing programme and
co-operate to develop trademarks to maximise the results of their
co-operation.
FPT
profits up in H1 thanks to strong overseas branches
The
country's software giant FPT Corporation (FPT) released the company
first-half financial report, citing pre-tax profits of VND1.35 trillion
(US$63.3 million), a 10 per cent increase over last year's H1 figure.
The
holding company's after-tax profit increased by 12 per cent to VND881 billion
($41.3 million) over last year.
The
company's earnings-per-share also rose by 12 per cent to VND2,224.
FPT's
combined revenue rose by 27 per cent over last year to VND19.32 trillion
($907 million), 108 per cent of this year's plan.
The
company said that the growth of sales in the company's technology sector and
distribution-retail sector was the major factor that helped FPT achieve such
high profits and revenue.
The
technology sector recorded VND3.46 trillion ($158 million) in revenue and
VND395billion ($11.3 million) in pre-tax profit for the first-half, an
increase of 27 per cent and 14 per cent, respectively.
FPT's
growing overseas branches is a key factor in its growth. Its overseas
business increased 44 per cent to $98 million in revenue in the first half of
this year.
Ha
Noi seeks investment in four commercial centres
The
municipal People's Committee is seeking investors to facilitate the
construction of four new commercial centres in the Quoc Oai, Thanh Tri and
Hoai Duc districts.
Under
the Decision No. 3415/QD-UNND, the projects will not use capital from the
State budget. The committee required the Department of Natural Resources and
Environment to instruct the districts to develop land-use plans for the
construction by 2020.
It
also asked the Centre for Investment Promotion, Trade and Tourism to meet all
legal conditions for investment and land management as well as the relevant
regulations for choosing contractors.
The
City Garden Company has kicked off work for a tower of 478 high-end
apartments ranging from 70 to 161 sq.metres in
The
This
tower is designed by the renowned architect Koos de Kiejezer of DKO company.
The
Element Design Studio of Singapore is responsible for landscape design, which
will be carried out by local contractor Cotecons. It is expected to be
completed in June next year. Amenities include a children's playground,
jogging path, swimming pools, BBQ garden, restaurants and convenience stores.
Bank
credit outpaces deposits, lending rates
Bank
credit growth so far this year stands at 7 per cent year-on-year,
outstripping deposit growth, which is only 5 per cent, Dau Tu Chung Khoan
newspaper reported.
Reports
from the VPBank Securities Company (VPBS) and BanViet Securities Company
predict full-year credit growth to exceed the target of 13-15 per cent.
The
highest growth has been registered in lending to the property sector — 10.9
per cent – as it accounted for 8.3 per cent of total outstanding loans as of
end July.
VPBS
analysts attributed the rapid credit growth to reasons like the reduction in
interest rates.
Deposit
interest rates declined by 0.2-0.5 percentage points, allowing lending interest
rates to fall by 0.3 percentage points, they said.
With
the prices of commodities and fuel falling in the global market since late
last year, companies have been able to cut production costs, leading to a
recovery in their business and increased credit demand as a result.
The
chief of a commercial bank in
Analysts
considered the strong credit growth as a sign of the country's economic
recovery, but expressed concern about banks' liquidity and the increase in
bad debts.
Nguyen
Tri Hieu, a senior economist, told Dau Tu Chung Khoan, "
In
recent years, because of the high inflation, the State Bank of Viet Nam (SBV)
has had to apply a tight money policy, sharply increase interest rates, and
reduce lending to non-production sectors.
As a
result, inflation has declined significantly and the imbalance between
deposits and credit has been mitigated, Hieu said.
But
the higher growth of credit than deposits means banks' liquidity is not as
good as it was a few months ago, he said.
This
is underlined by the fact that banks, the biggest buyers of government bonds,
are not too keen on them now. Consequently, the percentage of government
bonds bought in the primary market fell dramatically from 68 per cent in the
first week of July to 39 per cent in the second.
Analysts
also expressed fears about a possible increase in non-performing loans.
Hieu
agreed saying that when credit is loosened bad debts are likely to rise.
According
to SBV figures, by late March the banking sector's bad debts ratio had risen
to 3.81 per cent from 3.24 per cent late last year.
Analysts
said bad debts are always banks' biggest worry, including big ones. Even
Vietcombank, which boasts the best financial management in the banking
industry, has a bad-debts problem.
Over
the first half of this year its bad debts climbed to 2.43 per cent of total
loans outstanding, higher than its year-end target of 2.3 per cent.
Chairman
Nghiem Xuan Thanh said the bank's credit quality is worrying because its
provision for bad debts has reached an all-time high level while bad debts
recovered have been much lower than planned.
Firms
to issue their own certificates of origin
Vietnamese
enterprises have been urged to actively learn about the preparations for
self-issuing a certificate of origin before the upcoming free trade
agreements (FTAs) go into effect.
Tran
Thi Thu Huong, director of VCCI's Centre for Trade Paper Attesting, said at a
workshop in Ha Noi on Thursday that the mechanism for self-issuing a
certificate of origin is new to
In the
process of negotiating FTAs, the negotiators gave high importance to
self-issued certificates of origin for enterprises, calling it a goal that
must be achieved, she added.
Explaining
the mechanism, the director said responsibility for certifying the origin of
goods would be transferred from authorities to enterprises.
Enterprises
will carry out the necessary procedures and satisfy legal conditions to
determine and certify that commodities have met standards related to their
origin.
They
must also take responsibility for ensuring the accuracy of this
certification.
The
self-certification of origin aims to facilitate import and export activities
and reduce administrative procedures.
However,
most Vietnamese enterprises lack information on the process of
self-certification, Huong said.
The
director said Swiss and Norwegian experts had noted that the
self-certification mechanism has existed in their countries for 40 years, but
only about 1,000 enterprises have used it in
The
small number of participants is attributed to enterprises failing to meet the
necessary conditions for self-issuing certificates.
Meanwhile,
many enterprises that can meet the conditions are not confident and still
need agencies to help them complete the attestation.
Analysis
of the process will play an important role in helping enterprises
self-certify the origin of their products, and the role of customs will need
to be enhanced to attest to the accuracy of these cexrtificates, Huong said.
To
avoid problems when applying the mechanism for self-certification of origin,
enterprises should have a firm grasp on the production process and should
understand the associated regulations, she said.
The
director also recommended that enterprises maintain document storage systems
and build a team to manage verification requirements when needed.
British
companies can participate in infrastructure projects in which
Tat
Thanh Cang, deputy chairman of the People's Committee, told the visitors led
by Minister of State for Small Business, Industry and Enterprises Anna Soubry
at a meeting on Thursday that the city is now focusing on four key sectors —
electronics - IT, mechanical engineering-transport,
chemicals-plastics-rubber, and food processing.
Investment
priority would also be given to developing public transport, including eight
metro routes, ports and logistics, he told them.
Some
60-70 per cent of
Soubry
said
She
also expressed interest in developing deep-sea ports and the Thu Thiem new
urban area, saying British companies hope to participate in those projects.
The
British visitors — part of a larger delegation to Viet Nam led by PM David
Cameron that wrapped up its visit later the same day — included many top
business executives from industries like construction, electronics, power,
and infrastructure besides investors.
Japanese
firms flock to invest in HCM City
Japanese
businesses continue to regard
Speaking
at the Viet Nam-Japan Investment and Trade Promotion Forum, Mukuta Satoshi,
senior managing director of Keidanren (Japan Business Federation), said
Japanese firms had invested a total of US$37.3 billion in
"
Mukuta
was leading a delegation of executives from 24 large Japanese companies
involved in processing and manufacturing, garment and textile, transport,
construction, real estate, finance, banking, insurance, retail, and other
industries, who came to explore the city's investment and business
environment.
Nakajima
Satoshi, the Japanese envoy in
Le
Thanh Liem, deputy chairman of the city People's Committee, said the city hoped
the Japanese Government and business community would continue to share
management experience, transfer technology, provide ODA support, and invest
in projects to develop infrastructure, human resources, support industries,
and hi-tech agriculture.
"The
city will always welcome, accompany and create favourable conditions for
foreign investors, including Japanese, seeking long-term investment and
business opportunities in the city."
The
forum would provide a chance for businesses from the two countries to
understand each other's needs, he said.
Pho
Nam Phuong, director of the Investment and Trade Promotion Centre of HCM City
(ITPC), said the city has 17 industrial parks and export processing zones
with a total area of 4,000ha. There are plans to establish seven more IPs
with a combined area of over 2,000ha, she revealed.
Speeding
up infrastructure work and attracting investment into new urban areas like
Thu Thiem and
Besides,
the city is soliciting foreign investment in many socio-economic projects,
she added.
The
Department of Investment and Planning introduced key projects in which the
city sought Japanese investment like the monorail line No 2 linking National
Highway 50 with the Thanh Da - Binh Quoi Urban Area in Binh Thanh District,
and construction of an underground mall at the Ben Thanh Central Station.
It
also highlighted the city's potential, favourable conditions and investment
policies.
Organised
by ITPC, the event also attracted executives from 50 Japanese firms operating
in
It was
followed by a business-to-business meeting to enable a further exchange of
information and co-operation opportunities.
New
property law piles risk on banks
A
proposed decree to guide the recent amendments to the Law on Real Estate
Business that requires housing developers to get guarantees from banks before
they can sell or lease out units needs to be more specific to ensure safety,
a developer has warned.
Nguyen
Van Duc, deputy director of Dat Lanh Real Estate Company, told a seminar held
in HCM City to collect feedback on the draft decree that generally a
developer needs bank loans for land clearance and buying land use rights and
then for construction.
Now,
with the guarantee, all the risks pile on banks if a project gets into
trouble, he pointed out.
In
reply, Vu Van Phan, deputy head of the Ministry of Construction's Housing
Management and Real Estate Market, said the State Bank of
Phan
said the guarantee is to safeguard buyers' rights since many people who paid
to buy apartments had been unable to get back their money when projects
stalled.
Le
Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), said
the government should allow insurance companies to join the business (provide
the guarantee) to offer developers a wider choice in sharing the risk.
Nguyen
Trong Ninh, permanent deputy head of the Ministry of Construction's Housing Management
and Real Estate Market, said that even foreigners who are in the country for
just a day are allowed to buy houses.
He
also said that foreigners get ownership for 50 years and can apply for a
single extension of 50 years at most.
They
can resell their assets with the buyers getting the title for the remaining
duration, he said.
Participants
said the new owners should enjoy another 50 years.
The
amendments to the housing and real estate business laws took effect on July
1, but decrees guiding their implementation are yet to be issued.
Chau
said foreign institutions and individuals are allowed to own 30 per cent of
the total number of units in an apartment project but only 10 per cent of
houses if a development comprises both apartments and houses. He called for
greater flexibility in places like Ha Noi, Da Nang, Binh Duong, Dong Nai, and
HCM City, especially areas like Phu My Hung and Thao Dien in HCM City that
attract a large numbers of foreigners.
"Local
governments should be empowered to make decisions appropriate for their
situation."
Yoshida
Akio, chief representative of Japanese-owned Kitakei Co, which sells housing
materials and equipment and construction work systems, said the Japanese
community in Viet Nam wanted to buy houses to live in the country for a long
term, adding the 30 percent rate should be increased to 40 or 50 per cent.
Circular
9 opens NPL activity to foreign, local investors
State
Bank of
HSC
said that this could be a breakthrough for local organisations since an open
market would help the Vietnam Asset Management Company (VAMC) and banks
reduce NPLs in the economy.
HSC
said that the circular, which takes effect in September, would control the
purchase of NPLs between institutions in the finance-banking sector by
defining the responsibilities of seller, buyer and other stakeholders.
The
VAMC is a leading local entity founded by SBV in 2013 to buy NPLs from local
financial institutions and sell them to investors.
In
total, VAMC has purchased VND158 trillion (US$7.26 billion) of NPLs but sold
only five per cent, VND7.8 trillion ($358.8 million), to investors.
In
order to sell more NPLs, and reduce the rate of NPLs-to-total capital to
three per cent by the end of this year, VAMC needs to find investors that are
able to buy NPLs in large volumes, according to HSC.
However,
local organisations will continue to be the main buyers of NPLs because
overseas investors are not likely to do so in the near future. Sales will
remain low until the value of NPLs are equal to their market price.
The
circular will also prevent financial institutions from buying and selling
NPLs to each other as a way to temporarily reduce their bad debt ratios.
Circular
09 states that a company must provide all required legal documents and
financial records before it can sell any of its non-performing loans or bad
debts.
Financial
organisations must register, get SBV's approval and have a ratio of
NPLs-to-capital under three per cent.
Asset
management companies that belong to a financial institution are able to buy
NPLs from another financial institution only if its parent has a bad-debt
ratio below three per cent.
A
financial institution cannot sell its NPLs to its subsidiaries, except ones
whose restructuring plans are approved by the Government and the SBV.
A
financial institution cannot buy back their NPLs and must issue an internal
regulation on buying and selling NPLs that differentiate NPL auditing from
NPL buying-selling.
NPL
sellers are able to negotiate with buyers about contract details if the
seller wants to sell a part or the whole NPL to several buyers.
NPLs
must be recorded, reported to and tracked by the SBV in accordance with
regulations.
Nearly
1.7 billion USD of FDI pours into real estate market
The
country's property market attracted 1.69 billion USD in foreign direct
investment (FDI) for 15 projects in the first seven months of 2015, according
to the Foreign Investment Agency.
This
figure accounted for 19.3 percent of the total FDI capital of 6.92 billion
USD.
Figures
from the agency showed that the real estate sector took second place in
attracting FDI capital during the period. In
Experts
forecast that FDI pouring into the property sector would see a surge by the
year-end month thanks to the amended Law on Housing 2014 and Real Estate
Trading, which allows foreign buyers and overseas Vietnamese to own houses in
JETRO
supports Ha Giang province in investment attraction
Representatives
of the Japan External Trade Organisation (JETRO) Japanese businesses worked
with leaders of northern mountainous Ha Giang province on July 31 in an
effort to help the locality lure more Japanese investors.
Speaking
at the working session, Atsusuke Kawada, Chief of the JETRO Office in
At the
end of this year, the JETRO Office in
Secretary
of the provincial Party Committee Trieu Tai Vinh said the province always
open its door to foreign investors and pledged to support them with
consistent preferential policies while ensuring political stability and
social order.
He
hoped that the JETRO Office would assist the locality in investment
promotion.
Mountainous
Ha Giang province is home to spectacular Dong Van Karst Plateau, which was
recognised as a member of the Global Network of National Geoparks (GGN) in
2010, making it a very potential spot to develop eco-tourism, cultural and
adventure tourism.
It
also has the Thanh Thuy International Border Gate that links
Besides,
the locality also has 9,000 hectares of valuable medicinal herbs.
Conference
examines economic aspects of Vietnam-US relations
Trade
is considered the most successful cooperation field between
Speaking
at the event, co-organised by the Vietnam Union of Friendship Organisations
and the Vietnam-US Friendship Association in HCM City, Deputy Minister of
Industry and Trade Tran Tuan Anh affirmed that trade and economics have
contributed importantly to the sustainable development of the bilateral ties.
Once
the Trans-Pacific Partnership (TPP) agreement is signed, the two countries’
partnership will be lifted to a new level, he said, adding that the increased
opportunities brought by the agreement will be coupled with increased
challenges which require the Government, businesses and people to take active
measures to turn challenges into opportunities.
US Consul
General in the city Rena Bitter noted that over the past two decades, the two
countries have enjoyed numerous achievements in bilateral relations with the
value of trade hitting 35 billion USD in 2014 from 500 million USD in 1995.
Educational
cooperation has also seen positive results, she said, adding that the number
of Vietnamese students in the
The
relationship will be enhanced once the
Huynh
The Du, a lecturer for the Fulbright Economics Teaching Programme, said that
the
Public
property needs better management
The
use of public property must be managed transparently to minimise legal
loopholes that results in the misuse of the property by individuals and
agencies, it was agreed at a recent meeting held by the Ministry of Finance
on the matter.
Public
property includes land, houses, cars and other assets which are worth more
than 500 million VND (23,000 USD).
According
to the National Database, as of December last year, the total value of public
property had reached nearly 1,000 trillion VND (45.8 billion USD).
Property
worth 690.5 trillion VND (31.6 billion USD) was managed by more than 59,000
government agencies, accounting for 69 percent of total assets.
Speaking
at the meeting, the head of the ministry's State Asset Management Department,
Tran Duc Thang, said several agencies allocated with public property had used
their capital to increase operational efficiency whilst giving pay rises to
employees and making additional contributions to the State Budget.
However,
the shortcoming remained in the management and use of public property. Many
assets managed by certain State-owned enterprises had been misused, said
Thang.
He
said the mechanism to allocate public capital to self-financing enterprises
allowed them to use the assets to make a profit.
However,
the method of defining the value of public property and self-financing
enterprises was not up to scratch.
The
ministry would review and adjust processes and procedures used to define the
value of property as well as increase the number of government self-financing
agencies that receive public assets, Thang told the meeting.
Quang
Ninh,
Tourism
agencies in
In
addition, many Vietnamese people living abroad have relatives in
Domestic
tourism would help curb the recent fall in international visitors to the
country, Thanh added.
More
than 60 percent of travel companies and providers of tourism-related services
such as hotels, restaurants and resorts have committed to cut prices by 20-40
percent to encourage domestic tourism under the National Tourism Stimulus
Programme.
Quang
Ninh needs to focus its investment to attract more tourists from HCM City to
local sites such as Quang Ninh Museum and hydroplane flight services, said
Nguyen Thi Khanh, deputy chairwoman of HCM City's Tourism Association
Quang
Ninh has more than seven million visitors every year, including five million
domestic visitors, according to the provincial Culture, Sports and Tourism
Department.
However,
the number of tourists from
In
June,
The
agreement covered five main areas: tourism products, promotion campaigns,
training of human resources, investment funds and tourism management.
FDI
enterprises promote use of Vietnamese goods
Foreign
direct invested (FDI) enterprises have created a momentum for developing
products made in
Vo Van
Quyen, director of the Domestic Market Department under the Ministry of
Industry and Trade, said more than 200 Vietnamese products were exported
throughout the world through foreign firms.
The
figure indicates the increasing contribution of the FDI sector in promoting
the programme, "Vietnamese people give priority to using Vietnamese
goods," Quyen added.
Vietnamese
goods, produced by both local enterprises and FDI firms in
The
survey conducted last May revealed that 92 percent of consumers are aware of
the programme, 63 percent of these people give priority to choosing
Vietnamese goods, and 54 per cent of them recommend that their relatives and
friends buy Vietnamese goods.
Yet,
three problems could be seen, including bumper harvests and decreasing
prices, a lack of an established value chain and pressure from the opening of
local markets. He added that the issues could be partly resolved if FDI
companies operating in
In
particular, he said he expected FDI companies to pay attention to connecting
domestic firms, while developing support industries for
Sharing
such ideas, Dang Xuan Quang, deputy head of the Foreign Investment Agency
under the Ministry of Planning and Investment, reiterated that Vietnamese
goods have not only been produced by wholly domestic companies, but also by
FDI businesses in Vietnam.
He
noted that this view should be integrated from policies to special actions to
prevent discrimination between the two kinds of goods.
Nguyen
Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises
(VAFIE), added that some views should be changed to further promote the
programme. Accordingly, Vietnamese goods should include products that have
been produced by large international groups, such as Samsung, Intel, Nokia,
Canon and LG in
Han
Myoung Sup, Samsung
"We
expect to contribute to the country's socio-economic development, as well as
improving the quality of life of the Vietnamese people by manufacturing good
products", he said.
Samsung
has carried out programmes to meet their commitment and has sought partners
to develop
Today,
the country has 700 supermarkets and 100 commercial centres, while just in
However,
modern retail channels have accounted for 20 per cent of total retail
activities in the country, and this rate is expected to increase by 30 to 40
per cent from 2020 to 30.
Further,
Vu Vinh Phu, chairman of the Hanoi Supermarket Association, said co-operation
between production and distribution had not been enhanced, resulting in
excess inventories, especially in agricultural products.
"The
country should further promote connection chains to bring Vietnamese goods
into supermarkets. This could help Vietnamese goods become more popular and
be sustainably developed," Phu said.
Nguyen
Thai Dung, deputy general director of Big C Thang Long, said his company had
always given priority to Vietnamese goods, as 95 per cent of its products are
manufactured in
Meanwhile,
a representative from Hapro said their retail system distributed some 20,000
products, of which 80 per cent were locally produced.
Measures taken
to bolster export of agro-forestry-aquatic products
Deputy
Prime Minister Hoang Trung Hai has ordered the implementation of measures to
remove difficulties and promote the export of agro-forestry-aquatic products.
Accordingly,
the State Bank of Vietnam (SBV) will continue working with the Ministry of
Agriculture and Rural Development to effectively implement monetary policy
management measures to increase business access to bank credit programmes to
support manufacturing and the export of agro-forestry-aquatic products.
The
bank said it has specifically designed preferential credit programmes to
facilitate the manufacturing and export of agro-forestry-aquatic products.
Credit
organisations are encouraged to balance capital sources and reduce loan
interest rates for prioritised fields – including agriculture, rural
development and exports.
They
are allowed to restructure business debt payment deadlines while improving
consumer trust.
The
maximum interest rate for short-term loans in VND for prioritised sectors is
7 percent annually.
The
SBV also provides foreign currency loans for agriculture firms at reasonable
interest rates and expands Government Decree 55/2015/ND-CP on supporting
credit loans for agriculture and rural development, which took effect in July
2015.
According
to the Ministry of Agriculture and Rural Development, earnings from the
export of agro-forestry-aquatic products in June reached 2.6 billion USD,
bringing the sectors’ total export revenues in the first half of the year to
14.42 billion USD.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Ba, 4 tháng 8, 2015
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