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BUSINESS IN BRIEF 14/9
Markets
to hold ahead of Fed announcement
The
market is expected to move sideways early this week as it awaits a mid-week
"market watch" decision by the US Federal Reserve (Fed) regarding a
possible interest rate hike.
"Investors
appear to be standing outside and waiting for the Fed's move, instead of
strongly investing in the market at this stage," analysts at BIDV
Securities Co wrote in a report, mentioning the market's current low
liquidity and narrow trading band.
They
further said that whether or not the US Fed raises interest rates in
September, the result would cause market volatility, in the short run.
Therefore, the "current value accumulation will likely end soon when the
Federal Open Market Committee's meeting takes place from September
16-17".
Shares
rose in two out of the total five trading days last week, mainly driven by
large-cap stocks.
On the
HCM Stock Exchange, the VN-Index gained a cumulative 1.78 per cent during the
week, closing Friday at 566.74 points. Meanwhile, the HNX-Index on the Ha Noi
Stock Exchange increased 1.59 per cent to end the week at 77.53 points.
Blue
chips were the largest gainers last week. The VS-Large Cap, the index
measuring performance of the largest stocks with a market capitalisation of
over VND10 trillion (US$444.4 million), developed by the financial website
vietstock.vn, climbed 4.12 per cent.
Other
indices, including VS-Mid Cap, VS-Small Cap and VS-Micro cap. increased just
0.5-1.3 per cent.
Liquidity
continued to decline from the previous week.
In
The
similar number was much more modest in Ha Noi, as the market volume reached
just 33 million shares, worth VND367 billion ($16.3 million) per session.
According
to data on the vietstock.vn, 14 of 20 sectors saw gains, of which banks were
on top with an average growth of 7.73 per cent. Insurers were the second
largest gainers, with an average rise of 4.62 per cent, followed by real
estate, construction and securities companies, with increases from 1.7-2.2
per cent.
Bank
for Investment and Development of Viet Nam (BID) was the second largest
listed lender by market capitalisation, with over VND77 trillion ($3.4
billion) on September 11, becoming the leading lender. Its share value gained
almost 9 per cent last week, thanks to information that the share was
included in the FTSE Vietnam Index and FTSE Vietnam All-Share Index, managed
by the FTSE Vietnam exchange-traded fund in its third-quarter review.
Its
liquidity also improved, with an average of over 2.6 million shares traded
per day, higher than the previous week's average of just 1.7 million shares
per day.
According
to analysts at Bao Viet Securities Co, investment capital in shares will be
segmented in the short run, based on third-quarter business results of listed
companies. They said those benefiting from lower input costs, thanks to
declines in global commodity prices, include steel, iron ore, plastic, oil
and foreign currency, which could attract higher attention.
Guidance
for Law on Real Estate Business in pipeline
Documents
guiding the Law on Real Estate Business, which took effect in July 1, are
expected to be issued sometime this month, according to Mr. Nguyen Trong
Ninh, Deputy Head of the Housing and Real Estate Market Management Agency
under the Ministry of Construction (MoC).
The
content of the documents were completed by the agency at MoC’s direction and
have been submitted to the Prime Minister, Mr. Ninh was quoted as saying.
Their
official issue will create the legal framework to support the sustainable and
vibrant development of
Including
specific content regulating detailed procedures and conditions, the documents
will help businesses and homebuyers complete housing transactions in compliance
with the law.
The
Amended Law on Real Estate Business took effect on July 1 and contains
important amendments on the rights of key players in the real estate market
compared to the Law on Real Estate Business dated June 29, 2006. The rights
of local organizations and individuals to conduct real estate business remain
generally unchanged, according to the Vietnam International Law Firm (VILAF).
They
continue to have the right to purchase houses/buildings and construction
works for sale, lease or grant of hire-purchase, lease houses/buildings and
construction works for sublease, and develop new projects. However, following
the restructuring of the rights of land users with respect to different types
of land use rights in the Land Law 2013, the new Law also restructures the
corresponding development rights for each type of land use rights, VILAF
said.
For
overseas Vietnamese and foreign-invested enterprises (FIEs), beside the right
to develop new projects the new Law adds the right to sublease houses/buildings
and construction works that are already developed. Overseas Vietnamese and
FIEs, however, have different rights in the development of new projects.
Since overseas Vietnamese and FIEs do not have access to certain types of
land, their rights to develop new projects are also narrower than those of
local organizations and individuals, according to VILAF.
Tonnes
of dragonfruit in stockpile
At the
end of the harvest, farmers in Ham Minh commune in south-central Binh Thuan
province still had 1,500 tonnes of dragonfruit in stock as Chinese buyers
have stopped importing. Price fell as a result, to a low of VND1,000 ($0.04)
per kilo for high-quality fruit and VND500 ($0.02) for low-quality fruit.
Some
households left their fruit on their farm, while others hired trucks to
transport them to Ho Chi Minh City and sold them on the street for VND10,000
($0.45) for four kilos.
In
response, domestic enterprises have bought the fruit to support the farmers.
After one week nearly 1,000 tons of dragonfruit were sold, according to one
company selling them. It is expected that the remainder will be sold over the
next ten days.
As
transport costs differ based on location, so do prices. In
These
enterprises are not selling dragonfruit in
Besides
retail selling, enterprises also do business with other companies. For
example, one is working with a beverage business in
It is
also researching methods to keep the fruit fresh for export to ASEAN
countries, receiving interest from one Singaporean importer.
To
prepare for sales over the long term it is building a processing plant in Quy
Nhon in south central Binh Dinh province with a capacity of 1,000 to 2,000
tons per day.
The
difficult thing for all enterprises, it said, is that production capacity in
provinces is unclear.
“Sometimes
we are told that there are tens of thousands of tonnes in stockpile, but when
we start buying them the stockpile is actually in the hundreds of thousands
of tonnes ,” its CEO said.
US$116.59
million for intersection construction in District 7
The Ho
Chi Minh City Department of Transport has presented a project to build Nguyen
Van Linh-Nguyen Huu Tho Intersection, District 7 with total capital being
expected at VND2,620 billion (US$116.59 million).
The
department plans to implement the project in two phases. The first phase will
build a tunnel under Nguyen Van Linh Street and traffic light system at
nearly VND840 billion(US$37.38 million).
The
second phase will construct other items of the project and enlarge Nguyen Huu
Tho Street at a total fund of VND1,780 billion, of these VND1 trillion for
site clearance.
The
city People’s Committee has tasked Tan Thuan Industrial Promotion Company to
work with Phu My Hung Development Company to consider and negotiate
investment cooperation measures under BT form (Build-Transfer).
Nguyen
Van Linh-Nguyen Huu Tho crossroads is among hot traffic jam spots in HCMC.
FDI
attraction prospers in Mekong Delta
Six
provinces and cities in the Mekong Delta region have attracted 100 foreign
direct investment (FDI) projects with total registered capital topping US$738
million this year, reported the Foreign Investment Agency under the Ministry
of Planning and Investment.
Long
An province has attracted most with 78 new projects at US$208 million. Hau
Giang province has lured two projects with US$288 million.
So
far, the delta has had over 1,000 FDI projects with the total capital of
US$12 billion, accounting for 5 percent of the country’s number.
Long
An has taken the lead with 600 projects and US$4 billion, accounting for 60
percent the region’s total projects and 35 percent capital.
According
to experts, despite showing good signs for the region, FDI attraction has
still yet to appropriate with the Mekong Delta's potentials.
Therefore,
the region should have solutions in human resources and infrastructure to
foster FDI's attraction in agricultural field and improve its
competitiveness, added experts.
Customs
procedures still headache for firms
Many
enterprises still complain that customs clearance procedures remain
complicated though the law on customs expected to ease export and import
activities came into force early this year.
Speaking
at a meeting with business executives held by the General Department of
Customs and the U.S. Agency for International Development (USAID) in Hanoi on
Tuesday, the Vietnam Textile and Apparel Association’s vice chairwoman Dang
Phuong Dung said textile firms normally import quarantined feather but when
shipments arrive in Vietnam, the item would be quarantined again.
Importers
have to wait five to seven days for getting a quarantine certificate from the
Animal Health Department after they submit their applications. Then they have
to register for quarantine and fumigation at border gates and this progress
lasts one to two days. Post-fumigation results must be sent to science
academies for verification.
Dung
calculated that it would take up to 20 days for the imported product to go
through the customs. Enterprises have to pay storage fees which amount to
dozens of millions of dong.
Au Anh
Tuan, deputy head of the Customs Control and Supervision Department, said
customs procedures have been streamlined. Since August 15, goods in more than
half of more than five million declaration forms has been allowed to go
through the green channel and 8.34% through the red channel.
However,
Dung said goods of many enterprises had been diverted to the red channel
though these goods were subject to customs clearance at the green channel.
Nguyen
Hoai
The
General Department of Customs said it has proposed removing 19 procedures and
simplifying 46 others. Besides, the agency has reduced unnecessary customs
documents and the time for application checks and goods inspections.
Pham
Thanh Binh, a consultant for the GIG project, said improved customs
procedures could not be measured precisely.
A
study funded by GIG showed shipments subject to specialized inspections at
customs offices in HCMC,
Quarantine
durations often range from 24 hours to 48 hours while those for some products
like dairy products and beverages take up to 168-240 hours. In addition,
popular quality inspections take 168 hours while products like milk, food and
food containers should be 240 hours.
Inspections
of functional foods require 360-400 hours compared to the average food
inspection duration of 168 hours.
When
asked to compare goods inspections this year with those before, 63.2% of
respondents said quarantine procedures were not simpler or even more
complicated and 78.6% said the quarantine duration was not faster or even was
slower.
Besides,
the quality inspection duration was not shortened or even longer as
complained by 90.9% of respondents in the survey. In terms of food safety
inspection, 81.8% said the duration was not faster or even was slower before
2015.
VITAS:
Apparel firms can enjoy part of TPP tax incentives
The
vice chairwoman of the Vietnam Textile and Apparel Association (VITAS) said
that with heavy reliance on material imports, it would be a success for local
apparel firms if they take advantage of just 30% of tax incentives offered in
the Trans-Pacific Partnership (TPP).
Dang
Phuong Dung told the Daily on the sidelines of a seminar on apparel
technology in HCMC on September 9 that most of the materials imported by
local apparel enterprises came from
“Therefore,
when
The
biggest problem of the apparel sector is the knitting and dyeing process, so
most of fiber output is for export. The country exports over US$2 billion
worth of fiber annually, accounting for 70% of the volume of domestically
produced fiber.
Therefore,
Dung said the knitting and dyeing sectors should be developed so that the
fiber production can better serve domestic demand rather than export.
Speaking
at the seminar, the VITAS vice chairwoman said local apparel enterprises
entered global markets slower than their rivals from other countries and have
since focused on low-cost labor and outsourcing contracts instead of
investing in material development.
The
local apparel sector expects exports will rise from US$24.5 billion last year
to US$36-38 billion in 2020 and US$64-67 billion in 2030. The target for
local content is 55% in 2015, 65% in 2020 and 80% in 2030.
The
Experts
said
At the
conference co-held by the Ministry of Industry and Trade and the
representative office of the Korea Institute of Industrial Technology on
September 9, South Korean investors presented environmentally-friendly
technologies for knitting and dyeing projects.
Current
rice export system unbeneficial for small firms
The
exisiting rice export mechanism prevents many small businesses from shipping
the staple food though the country needs them to boost exports amidst
mounting competition from regional rivals.
The
challenges faced by small rice exporters were raised at a forum on
agriculture policy in HCMC on Tuesday. The event was held by the
Nguyen
Duc Thanh, president of the Vietnam Institute for Economic and Policy
Research (VEPR) at
VFA is
permitted to set out requirements to limit the number of rice exporters, and
decide the floor export price for a each particular period.
Some
speakers at the forum said VFA’s current rice export management has benefited
big businesses instead of small ones.
Nguyen
Thi Hong Minh, former deputy minister of fisheries, said other nations force
companies in a sector to join an association and that they must be under the
management of the association.
In
Thanh
of VEPR, who has studied the impact of Decree 109 on farmers in the Mekong
Delta, said to improve the efficiency of Vietnamese rice exports, a proper
mechanism should be put in place to ensure fair competition among members and
non-members of VFA.
Thanh
said VFA should not limit the number of rice exporters and create favorable
conditions for firms to join hands with farmers to produce high-grade rice
varieties for export.
According
to the Ministry of Agriculture and Rural Development,
The
average export price reached US$429 per ton in January-July, falling 5.33%
year-on-year.
G-bond
issuance slides to dismal low
Only
VND29 billion ($1.29 million) of the VND6 trillion ($267 million) of bonds
that were offered in the primary bond market from August 24 to 28 were
successfully issued. The winning ratio plummeted to 0.48 per cent, its lowest
level this year.
Specifically,
the State Treasury (ST) offered VND3 trillion ($133 million) of five-year and
ten-year bonds, but did not successfully issue any of them. The Vietnam Bank
for Social Policies (VBSP) also offered VND1 trillion ($44.5 million) of
bonds across different tenors, but there were no registered bids in the bond
auction.
The
Vietnam Development Bank (VDB) offered VND2 trillion ($89.0 million),
equivalent to one-third of the last week’s total offer. However, only VND29
billion ($1.29 million) of fifteen-year bonds were issued successfully, at a
yield of 7.9 per cent per annum, unchanged from the previous week.
As of
August 28, VND112,046 billion ($4.99 billion) of government bonds and
government-guaranteed bonds have been issued. Of these, VND94,258 billion
($4.19 billion) were ST bonds, completing 38 per cent of the full year
target; VBSP accounted for VND8,459 billion ($376 million); and the Vietnam
Development Bank (VDB) has mobilised VND9,329 billion ($415 million).
There
were no bill transactions recorded during the reviewed week.
During
the week, VND2 trillion ($89 million) of five-year municipal bonds were
mobilised from the Hanoi State Treasury. The winning ratio reached 100 per
cent, due to an attractive bond yield of 7.9 per cent per annum. Thus, the
Hanoi State Treasury completed the first phase of its capital construction
bonds issuance plan.
Next
week, VND4 trillion ($178 million) of bonds will be offered on the primary
market. The ST will offer VND2 trillion ($89 million) of five-year bonds and
VND1 trillion ($44.5 million) of fifteen-year bonds. The VBSP will
offer VND500 billion ($22.2 million) of three-year bonds, VND200 billion
($8.9 million) of five-year bonds, and VND300 billion ($13.4 million) of
fifteen-year bonds.
Secondary
market
The
secondary market slightly decreased last week from the previous week’s strong
results, with total trading value of VND18,810 billion ($837 million). The
average value per session was VND3,762 billion ($167 million), down 9.31 per
cent from the previous week.
Outright
transactions dominated trading, with 72 per cent of total volume, equivalent
to VND13,486 billion ($599 million). Meanwhile, trading volume of repo
transactions was VND5,325 billion ($237 million), which only accounted for 28
per cent of the total.
Trading
of three-to-five-year bonds dominated the market, with 30 per cent of total
outright transactions. Less-than-one-year bonds and more-than-seven-year
bonds transactions occupied 21 per cent and 26 per cent, respectively.
One-to-three-year bond transactions accounted for 15 per cent, while
five-to-seven year bonds were the lowest, occupying only 9 per cent.
Foreign
investors net sold for the fifth consecutive week, with their highest volume
year-to-date of VND2,121 billion ($94.4 million)
Bond
yields fluctuated in a narrow band last week. Yields continued to rise for
most tenors except for a slight decrease of one-year, two- year and
seven-year bonds. The VND devaluation significantly reduced demand for
domestic currency bonds, thereby pushing bond yields up continuously over the
last month. However, in the absence of other specific factors affecting the
market, once the exchange rate started to cool down, bond yields only
fluctuated in a narrow band.
VAMC
to buy bad loans from lenders
The
State Bank of
VAMC
chairman Nguyen Quoc Hung said banks had registered to sell bad debts worth
VND64 trillion ($2.84 billion) in the first seven months of this year, and
the VAMC had agreed to buy VND59 trillion ($2.62 billion) of it for VND54
trillion ($2.4 billion). Photo TNCK
Under
Circular 14/2015/TT-NHN, which will take effect from October 15 this year,
the Viet Nam Asset Management Company (VAMC) will directly issue a new type
of bonds to purchase NPLs at market value from credit institutions.
The
new bonds are allowed to transfer between the central bank and credit
institutions, as well as among credit institutions.
Currently,
the VAMC also issues special bonds in return for bad debts from credit
institutions, but the bonds are not allowed to be transferred. The special bonds
may be used only as collateral to secure funding from the central bank.
VAMC
will continue to implement its bad debt handling process via the special
bonds it issued in the past. According to the new regulations, credit
institutions will no longer have to make risk provisions for NPLs which have
been sold to the VAMC. Currently, the lenders still have to establish yearly
provision funds amounting to 20 per cent of the value of the bonds they
received from VAMC.
Credit
institutions will also have more benefits as the new type of bond is defined
as having a risk ratio of zero per cent when calculating the Capital Adequacy
Ratio (CAR), while the special bond has a risk ratio of 20 per cent.
For
credit institutions that are under restructuring or facing financial
difficulties, the VAMC new bonds will help reduce pressure on them as the
expiry date of the bonds can be extended to 10 years from the 5 years of
special bonds.
The
VAMC targets buying roughly VND500-700 billion (US$22.5-31.1 million) of NPLs
at market value this year to boost the implementation of the new method next
year.
Credit
institutions are now required to sell a minimum amount of bad debts fixed by
the central bank by September 30 in a move to cut bad debts to below 3 per
cent by the end of September, a target previously set for the year end.
VAMC
chairman Nguyen Quoc Hung said banks had registered to sell bad debts worth
VND64 trillion ($2.84 billion) in the first seven months of this year, and
the VAMC had agreed to buy VND59 trillion ($2.62 billion) of it for VND54
trillion ($2.4 billion). Deputy director of the central bank's
FDI
boon for City property
The
The
amount accounts for almost 62 per cent of total FDI in the period.
The
city has granted licences for 327 projects with total registered capital of
more than $2.31 billion.
The
city continued to overwhelmingly top the country in terms of FDI in property,
accounting for nearly 78.5 per cent of the total investment of $1.82 billion
in 18 new projects and seven existing ones that are expanding.
They
include a $1.2 billion joint venture in
Experts
forecast a torrent of FDI in the property sector by year-end thanks to the
changes to the Law on Housing and Real Estate Business that allow foreigners
and Viet kieu (overseas Vietnamese) to buy houses in
More
Vietnamese fruits to enter choosy markets
Hoang
Trung, deputy head of the Plant Protection Department under the Ministry of
Agriculture and Rural Development, said the agency has gone through numerous
negotiations and technical procedures for Vietnamese fruits to be exported to
more markets.
The
department has negotiated with
A
group of
Trung
said Vietnamese officials have been in talks with their Australian
counterparts for a resumption of mango exports to
Trung
noted that the Vietnamese side has completed all procedures as required by
the
Data
of the agriculture ministry showed agro-forestry-fishery product exports last
month stood at US$2.4 billion, down over 10% compared to July. In contrast,
the export of fruits and vegetables surged 40.8% in August over the previous
month.
Trung
said
For
example, in the first eight months
Vinacomin
seeks to add losses to power generation costs
Vietnam
National Coal and Mineral Industries Group (Vinacomin) has sought the
Ministry of Industry and Trade’s nod to put all losses caused by the volatile
exchange rate between
Speaking
at a meeting of the ministry in
“We
request the ministry to consider allowing us to either add the losses to the
production costs of electricity or reduce or delay tax payments for us,” Tuan
was quoted by VietnamPlus as saying at the meeting.
Vietnam
National Oil and Gas Group (PVN) did not disclose how the group has been hit
by the volatile exchange rate but said it had cut into its financial
spending. The group has supplied more than 100 billion kWh to the nation’s
power grid.
Ngo
Son Hai, deputy general director of Vietnam Electricity Group (EVN),
acknowledged that the exchange rate volatility had dealt a blow to the power
sector and electricity suppliers. Vinacomin, which contributes 10-15% to the
national power grid, has racked up losses of VND1.2 trillion and power plants
of PVN have also been affected.
According
to EVN, the exchange rate volatility-triggered losses of power plants could
have been over 10 times higher than the VND1.2 trillion reported by
Vinacomin.
Hai
said EVN is calculating losses of power plants operated by Vinacomin and PVN
and will report the final figure to the industry ministry so as to find
solutions to help the groups deal with their losses.
Deputy
Minister of Industry and Trade Do Thang Hai admitted the volatile exchange
rate has impacted on production and business activities of local enterprises.
The ministry will submit the requests of electricity producers to the
Government for consideration.
Statistics
of EVN showed electricity output in the first eight months of this year
totaled 105.1 billion kWh, growing 11.7% compared to the same period last
year. Around 42.47 billion kWh of the total volume was generated by EVN,
62.58 billion kWh by facilities of other groups, and 1.17 billion kWh
imported.
However,
Hai said
Earlier,
the State Bank of
The
central bank’s deputy governor Nguyen Thi Hong said the adjustments helped
the local currency have greater scope to adapt to unfavorable market
movements until early 2016, and ensure the stability of the foreign exchange
market and the competitiveness of Vietnamese export goods.
Speaking
at the meeting, the ministry’s head of planning department Nguyen Tien Vy
said
Despite
the rise in total export turnover in the period, outbound sales of
agro-aqua-forestry products went down by 4.8% year-on-year to US$19.31
billion.
Trade
deficit in the period was put at US$3.6 billion, equivalent to 3.4% of total
export revenue and lower than the 5% target approved by the National
Assembly.
To
reduce trade deficit, the ministry said the Government has approved a scheme
to accelerate exports to US$300 billion in 2020 with an average annual
increase of 11-12% in the next five years.
The
country is expected to ship more goods to both traditional and new markets,
including ASEAN,
Vingroup
ventures into hi-tech agriculture
Can
Tho City is looking for around 200 hectares of land for Vingroup to develop a
hi-tech agriculture project in the Mekong Delta city.
At a
meeting on Tuesday, the city’s chairman Le Hung Dung asked relevant agencies
to find land for Vingroup to produce farm products for its retail store
chain.
According
to Dung, Vingroup said it would move the hi-tech agriculture project to other
areas if Can Tho cannot secure sufficient land for it. The company wants
cleared land to avoid possible disputes.
Can
Tho plans to allocate land at Co Do or Song Hau farms to the company, which
is known for high-end property development projects through the country.
Pham
Van Quynh, director of the Department of Agriculture and Rural Development of
Can Tho, confirmed the news when reached by the Daily. Co Do Farm might be a
priority area as it has more favorable conditions than Song Hau Farm, Quynh
said.
However,
Quynh said the government of Can Tho City needs further discussion with the
investor and review investment policies before making a final decision.
Besides
the agriculture investment project, Vingroup mulls other projects in the
city, including an 18-hole golf course, villas and amusement complex on Au
and Noi islets.
In
July, Vingroup inaugurated its first Vincom shopping center in Can Tho City
and the Mekong Delta. The company plans to open a second Vincom facility in
the city on April 30 next year.
Dung
told the meeting that Vingroup could invest around VND2 trillion in Can Tho
if everything goes smoothly.
HCM
City’s property projects attractive to FDI
Foreign
companies registered more capital for projects in the real estate sector in
HCMC than other sectors in January-August.
According
to the HCMC Department of Planning and Investment, foreign direct investment
(FDI) approvals in the property sector made up 61% of the total capital
registered by foreign firms in the period.
Data
of the HCMC Statistics Office showed that HCMC granted investment
certificates to 327 FDI projects worth a combined US$2.31 billion. Notably,
five projects in the real estate sector accounted for nearly US$1.43 billion
of the total, much higher than in other sectors.
FDI
pledges for property projects in HCMC accounted for nearly 78.5% of all FDI
approvals for the sector in the first eight months in the country.
The
This
is the first project worth over US$1 billion approved by HCMC in the year to
date. It also helps the city rank second in terms of FDI attraction in the
country after the northern
The
investor is completing procedures to begin work on the megaproject in the
last quarter of this year and expects to finish it in 2022.
Experts
said lax conditions for foreigners to own houses in
Realty
developers said
A
large population and high demand for houses and trade centers have led
foreign companies to invest in the property market in HCMC.
In the
first eight months, the city approved eight projects worth US$71.3 million in
the education sector, 73 projects in the technology sector and 53 projects in
the information and communication technology sector.
According
to the Foreign Investment Agency, total FDI pledges for new and operational
projects in
Of the
amount, FDI approvals in the manufacturing-processing sector accounted for
77.7%.
The
real estate sector ranked second with US$1.82 billion, equivalent to 13.7% of
the total.
The
Saigon
Agriculture Incorporation, or Sagri, has proposed the city government a plan
to invest nearly VND1 trillion in developing an industrial park (IP) for
enterprises in supporting and food processing industries.
The
company is expected to complete investment procedures next year and break
ground for the project in 2017 if it is approved. The IP is planned to cover
370 hectares of agricultural land under Sagri’s management in Binh Chanh
District.
Relevant
agencies in the city had a meeting on Tuesday to evaluate the proposed IP
project of Sagri.
According
to the HCMC government’s plan, the city will set aside 500 hectares of land
at IPs for projects in supporting industries in 2015-2020 as well as develop
multistory workshop buildings with total floor space of 100,000 square meters
for small and medium enterprises (SMEs) in the industries.
Priority
will be given to attract SMEs to supporting industries to back the development
of manufacturing and engineering, electronics-information technology,
chemical-pharmaceutical-plastics-rubber, and food processing sectors.
In
addition to the industries, the city government will continue calling for
investments in apparel, leather and footwear as well as develop material
sources for these industries. The city will select some typical industrial
and supporting industries products in the next few years to supply domestic
and foreign markets.
Earlier,
HCMC drew up a plan to develop 6,000 hectares of IP and 1,900 hectares of
industrial cluster. The HCMC Export Processing and Industrial Zones Authority
(Hepza) said the city now has approved 23 IPs covering a total of 5,788
hectares, including 18 IPs under construction and put into operation.
Domestic
traders to join multi-national distribution networks
By
2020,
This
goal is set forth in a Prime Minister decision approving the scheme to
promote Vietnamese enterprises’ direct participation in foreign distribution
networks through 2020.
Under
Decision No. 1513/QD-TTg dated September 3, the Prime Minister specifies
tasks and measures to implement the scheme, including building information
systems and databases to provide information about Vietnamese enterprises and
export goods to foreign importers.
Specifically,
in order to create favorable conditions for domestic enterprises, concerned
agencies are requested to collect accurate and adequate information and data
on foreign distribution networks, especially those engaged in the aforesaid
markets, and provide official information on foreign parties that import
Vietnamese goods to Vietnamese exporters through the e-portal of the Ministry
of Industry and Trade.
The
cabinet head directs ministries and sectors to work with foreign distribution
groups in guiding Vietnamese manufacturers and exporters in applying
international regulations and standards to their manufacturing processes, and
supplying goods up to technical specifications and quality requirements of
foreign distribution systems.
The
country will prioritize first of all exports with advantages and high
exportability to be distributed by major distribution systems in strategic
markets.
Trade
promotion and connection with foreign distribution systems within the
framework of the National Trade Promotion Program will be intensified, while
overseas trade promotion offices will increase assistance for Vietnamese
enterprises in seeking market information, making connections with customers
and exporting directly to foreign distribution systems.
Draft
decree to draw more foreign investors into agriculture
Foreign
investors investing in agriculture would be treated on an equal footing with
domestic businesses.
This is
highlighted in a draft decree on policies to encourage foreign investment in
agriculture and rural development recently released by the Ministry of
Agriculture and Rural Development (MARD).
There
would be no discrimination between foreign and local investors in accessing
materials and resources, the draft says, adding that support and incentive
policies applicable to foreign investors would be exactly the same as those
offered to domestic businesses.
Specifically,
foreign-invested enterprises having cultivation, husbandry or aquaculture
projects in extreme difficulty-hit areas or projects applying high
technologies or large-scaled field models would be entitled to exemption from
corporate income tax (CIT) for the first four years of operation and a 50-percent
reduction of the payable tax amount in the subsequent nine years.
Meanwhile,
FDI projects to manufacture machines and equipment for agricultural, forestry
and fishery production and projects to produce and process animal feed would
enjoy the preferential CIT rate of 20 percent in 10 years.
The
draft decree also says that the State would provide guarantee for performance
of large-sized project. It would also adopt policies to facilitate land
accumulation, support association between businesses and farmer households,
provide clear land to agricultural projects, and encourage the application of
large-scale field models and development of concentrated material zones
serving agricultural projects.
The
draft decree is scheduled to be submitted to the Government in the third
quarter of this year.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Hai, 14 tháng 9, 2015
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