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BUSINESS IN BRIEF 3/9
Around
300 new businesses launched each day in Vietnam
The
General Statistics Office reported that 9,301 new businesses were established
across the country in August, with a total capital of VND55.2 trillion
(US$2.46 billion), up around 41% from the previous month.
That
means more than 300 businesses were launched in
Compared
to August 2014, the number of new businesses increased 84% and the registered
capital 102.4%.
The
office also reported a 66.2% year-on-year increase in the number of new
businesses in July, when the amended Business and Investment Laws took
effect.
The
amended laws allow businesses to expand their activities as long as what they
do is not illegal. Earlier, companies in
The
list of illegal business activities has also been shortened from 51 to 6,
including wildlife trading, human trafficking and sex services.
Tran
Thi Hong Minh, an official from the Ministry of Investment and Planning, said
the figures showed that “the new laws have been well received by the business
community and are having positive impacts on the business environment.”
Statistics
also showed that 7,595 businesses suspended their operation in August, up 28%
from the previous month, and 834 businesses shut down, up 11.5%.
Italy
luxury furniture maker comes to Vietnam
Colombo
Stile, a top Italian luxury furniture brand, opened its first showroom in the
country in
The
showroom at the newly-built Time Square in District 1 will be managed by
Eurasia Concept, the company's strategic business partner and exclusive
distributor in
Founded
in 1886, Colombo Stile is known throughout the world for its innovative
designs, craftsmanship and quality.
Every
piece is custom-made by hand using gold and platinum, premium wood, lacquer,
animal hides and precious stones. Its products can be found in many luxury constructions
around the world.
Alfredo
Colombo of Colombo Stile said at the launch, "We are excited to have the
opportunity to introduce our brand to
DongABank
chief accountant replaced
DongABank’s
board of directors has suspended Vo Thi Kim Anh from the post of chief
accountant and chose Bui Nguyen Bao Vi, deputy head of the accounting
department at the bank’s head office, to replace Anh from August 26.
Meanwhile,
board member Vu Thi Vang was picked as vice chairwoman in the 2010-2015 term
on August 25 as part of a senior-personnel shakeup following the central
bank’s decision to put the bank under special surveillance.
DongA
Securities Co. on August 26 announced the appointment of Nguyen Quoc Toan,
DongABank’s deputy general director, as chairman of the brokerage replacing
Nguyen Thi Kim Xuyen.
The
bank’s board last Thursday named Vo Minh Tuan, deputy head of the credit
department at the State Bank of Vietnam (SBV), as new chairman of the ailing
bank after its chairman Cao Sy Kiem’s resignation.
The
central bank approved DongABank’s deputy general director Nguyen An as
caretaker general director after Tran Phuong Binh was suspended from the post
of general director on August 20 over his role in the bank’s hefty losses.
The
bank’s board and major shareholders will have to propose some candidates for
the post of general director to seek central bank approval.
The
central bank suspended DongABank’s general director Tran Phuong Binh and his
deputy Nguyen Thi Ngoc Van on August 20, just a week after it placed
DongABank under special surveillance over its violations of regulations on
financial management, credit and business activities in the years before
2012.
Huge
jump in new enterprises
In the
50 days since the new Law on Enterprises and Law on Investment came into
effect on July 1, 13,000 new enterprises have been registered, a 73 per cent
increase compared to the same period last year.
Minister
of Planning and Investment Bui Quang Vinh said the main factors behind the
increase included the country’s economic recovery, the stability of its
macro-economic environment, and transparent and simplified procedures to
register enterprises.
It now
only takes 2.6 days on average to successfully register a new business, which
is lower than the time regulated by the State, of three days.
Regarding
the delay in issuing an accompanying decree, Minister Vinh said that, under
the new Law on Investment, enterprises can conduct activities in every
business field not specifically prohibited by the State. This has given the
Ministry of Planning and Investment (MPI) and related government agencies a
lot of work to do in determining what should be specifically prohibited.
“This
is a substantial workload that requires a lot of time and attention to
detail,” he said. “If we are not cautious then the consequences could be
serious.” MPI had to work with 16 related ministries and government agencies,
he added.
He
insisted, however, that the decree would be issued in September.
New
bonds to be issued by VAMC
The
State Bank of Vietnam (SBV) has issued Circular No. 14/2015/TT-NHNN regarding
the purchase and sale of bad debts by the Vietnam Asset Management Company
(VAMC).
The
Circular will take effect on October 15.
VAMC
is to purchase bad debts in accordance with the market price via issuing
bonds directly to financial institutions selling such bad debts.
It
will continue to implement its bad debt handling process via the special
bonds it issued in the past.
As a
new method of handling bad debts, financial institutions will have the right
to approve the sale and evaluate the price of the bonds. The new bonds from
the VAMC can be used to make payments and transfers from financial
institutions to the SBV, which cannot be done with the special bonds.
After
VAMC issues the new bonds, financial institutions do not have to make risk
provisions for the value of any bad debts.
The
new type of bond is defined as having a risk ratio of zero when calculating
the Capital Adequacy Ratio (CAR), while the special bond has a risk ratio of
20 per cent.
Financial
institutions can use the bonds in open market operations.
VAMC
has proposed the SBV increase its charter capital to VND1.5 trillion ($66.73
million) so it can issue the new bonds.
Vingroup
to upgrade Hanoi's Vinh Tuy - Mai Dong Road
The
Hanoi People’s Committee has recently provided real estate developer Vingroup
with an interest-free advance payment of VND1 trillion ($44.5 million) to
widen the road from
The
road has a total length of 1.4 km with site clearance to begin in October and
is expected to ease traffic congestion in the area and link with transport
infrastructure in the city.
The
road is part of Ring Road No. 2, which was planned by the city’s Department
of Transport in 2012 and includes a 5-km flyover connecting Vinh Tuy-Mo
Market and the Vong Intersection, with an estimated cost of VND5 trillion
($222.5 million).
In
March this year Vingroup also kick off the widening of sections of Lang and
Nguyen Trai Streets and the Nga Tu So Intersection in the city’s western area
to ease traffic congestion around its
Empty
land plots top Dong Nai real estate market
Empty
land plots are dominating southern Dong Nai province’s real estate market,
with 93 per cent of the market share, according to the latest report from
Savills on Dong Nai’s real estate market in first half of 2015.
The
report showed that Dong Nai had 51 residential projects supplying more than
30,100 dwellings. The villa/townhouse segment followed the land plot segment
with a 5 per cent market share, followed by apartments with just 2 per cent.
Land
plots also saw the greatest transaction volume, with only a small number of
buyers purchasing villas/townhouses and apartments as second homes or future
residences. As at the second quarter approximately 87 per cent of the total
launched plots in 18 active land plot projects have been sold. Prices ranged
from VND2.3 million ($101.2) per square meter to VND6.3 million ($227.2) per
square meter.
The
reason why land plots have become the hottest segment in Dong Nai, according
to Savills, is that investors now prefer them, especially when they are at an
affordable price and accompanied by red books, or land ownership
certificates. In the longer term, the completion of key transportation
networks and the development of social facilities should attract full-time
residents.
As
noted by Savills, in the future, landed property supply consists of 47
projects with a total size of 4,850 ha in Long Thanh, Nhon Trach and Bien
Hoa. Most are still in the planning stage or conducting site clearance.
Eight-month
economy sees positive changes
Economic
experts said thanks to the clear and thorough guidance of the Government and
Prime Minister as well as comprehensive measures taken by ministries, sectors
and localities, the country’s macro-economy is under control and shows
remarkable recovery.
The
industrial production index in August grew 9 percent from last year’s same
month, bringing a 9.9 percent increase to the sector from January-August.
The
August CPI dropped by 0.07 percent month-on-month but rose 0.61 percent
year-on-year, raising the eight-month figure to 0.83 percent compared to the
same period last year.
Meanwhile,
total retail sales and service revenues were estimated at 271.7 trillion VND
(11.9 billion USD) in August, up 0.2 percent against the previous month and
10.1 percent year-on-year.
The
country’s export turnover reached 106.3 billion USD in the first eight months
of 2015, up 9 percent year-on-year.
In
spite of the positive results, the economy has also faced difficulties as the
country’s goods are at a disadvantage in competing with commodities imported
from
Recent
reductions of crude oil prices in the world have impacted the country’s
target budget collection.
According
to Dr. Nguyen Dinh Cung, Director of the C entral Institute for Economic
Management ( CIEM ), production and business activities of Vietnamese
enterprises saw numerous obstacles as the volume of inventory remains high
while the restructuring of enterprises remains slow.
Chairing
a recent meeting with representatives of several ministries and agencies to
evaluate the impacts of the world’s rapidly changing economy on the domestic
economy, Prime Minister Nguyen Tan Dung asked ministries and sectors to
outline flexible policies, intensify close coordination to promote export and
economic growth, and ensure stability for the domestic market.
He
also stressed the need to keep a close watch on changes in the global economy
and put forth solutions swiftly to limit their adverse impacts and extract
and fully tap advantages.
The
restructuring of State-owned enterprises (SOEs) should be accelerated,
focusing on equitising SOEs, renovating technology, increasing labour
productivity for sectors with high export proportions and developing export
commodities with high added value and potential, the Government leader said.
Enterprises
were tasked with fully tapping the domestic market and taking advantages of
free trade agreements signed with foreign partners to expand their markets.
The
Prime Minister also requested ministries and sectors hold firm to set
targets, saying that emphasis should be placed on stabilising the
macro-economy, curbing inflation, promoting export, maintaining stable
exchange and interest rate and preventing goods smuggling and trade fraud.
Baby
products sales to grow
Rapid
urbanisation, growth of the middle class and rising rates of women's
participation in the labour force, especially in developing markets, are
expected to stimulate global growth in baby food and diaper sales, according
to a report released last week by global performance measurement company
Nielsen.
The
2015 Nielsen Global Baby Care Report, which explores trends in categories
such as baby food and diapers and why consumers choose one brand over
another, shows that more than one in 10 consumers in Vietnam have a baby
below the age of one in their household, the highest level in this region and
double the global average of 5 percent.
A
further 19 percent have children aged one to two in their household compared
to 9 percent globally.
Half
of respondents in
Good
price/value and trusted brands are also important for more than a third of
consumers (38 percent), along with safe ingredients/processing (36 percent)
and flavour/taste (32 percent).
Organic
and all-natural foods are also an important purchase consideration, cited by
27 percent of respondents in
"When
it comes to caring for their little bundles of joy, parents are highly
discerning from the food they put in their mouths to the diapers they put on
their bottoms; there is little room for compromise, and they're willing to
spend more for quality," Connie Cheng, head of shopper insights for
Nielsen in Southeast Asia, North Asia and Pacific, said.
"Greater
awareness of the importance of health and nutrition is leading consumers to
look for natural, minimally-processed foods, and when it comes to their babies,
consumers are especially particular — even if their demands come at a
premium.
"In
developed markets, where birthrates are lower and baby care categories are
highly saturated, growth will be spurred by innovation and premiumisation
while in developing markets, increasing demand will be the biggest growth
driver."
When
it comes to attributes in choosing the brand and type of diaper to buy for
their babies, more than half of consumers in
Around
a third identify price/value and overnight dryness (33 percent) as the second
most important attributes, along with good fit /comfortable to wear (27
percent) and trusted brand (26 percent).
The
Nielsen report highlights the importance of recommendations from family and
friends and TV advertising as sources of information for new parents in
learning about which baby food to buy for their babies for the first time.
For
nearly three in five Vietnamese consumers (56 percent), recommendations from
friends/family have the most effect on their purchase decisions related to
baby food, followed by seeing an advertisement on TV (50 percent) and
recommendations from baby health experts (47 percent).
Online
influences from parenting websites (41 percent), parenting magazines (39
percent) and social media (33 percent) also have a big influence on their
first-time purchase decisions.
When
it comes to influencing purchase of diapers, close to half of consumers (49
percent) say recommendations from family and friends have the most
significant influence on their purchase decisions followed by recommendation
from baby health experts (32 percent) and TV advertising (29 percent).
Nielsen
estimates the global baby food/formula sales to reach nearly 30 billion USD
in 2015, and the global diaper market to exceed 29 billion USD.
The
Nielsen Global Baby Care Survey was conducted online between February 23 and
March 13 this year, and polled people in 60 countries around the
Asia-Pacific, Europe, Latin America, the Middle East, Africa and
Supermarkets
offer promotions to increase footfall
Expecting
sales to surge on National Day, September 2, retailers, electronic stores and
supermarkets are offering a slew of promotions to increase footfall.
Supermarket
chain Big C is offering discounts of 5-49 percent on 1,200 products ranging
from fresh and dried foods and beverage to clothes, household utensils, cosmetics,
and electronic products at its 31 stores nationwide until September 7.
It is
also offering attractive discounts for the upcoming Tet Trung Thu (Mid-Autumn
Festival) until September 27 on more than 200 products like moon cakes and
lanterns, teas and children's toys.
Lotte
Mart is offering discounts of 30-49 percent on all fashion items, canned and
fresh foods and others until September 14.
It
will also have a "Meat Festival" to meet the demand for fresh meat.
Co.opmart
and Co.opXtra supermarket chains are offering discounts of up to 50 percent
on thousands of Vietnamese high-quality products and hundreds of clean
agricultural products until September 20 under their Tu Hao Hang Viet (Proud
of Vietnamese Goods) programme.
Vo
Hoang Anh, Saigon Co.op's marketing director, said the supermarket chains'
biggest promotion of the year would cost more than 180 billion VND (8.2
million USD).
Many
electronics shops in
The
2015 Promotion Fair held at the Phu Tho Indoor Stadium in District 11 from
August 28 to September 3 is offering products discounted by up to 49 percent.
It has
attracted more than 370 companies showcasing and selling foods, beverages,
clothes, footwear, electronic products, school items, cosmetics, and
healthcare products among others.
RoK
firms urge ratification of FTAs with Vietnam, China, NZ
Forty-two
business associations of the
In
their letter, the organisations said the implementation of the trade deals is
urgently needed as the RoK faces unfavourable conditions and fear that its
economic growth rate could sink to below 3 percent this year.
They
added once the FTAs with the three countries come into force, RoK companies
will be able to benefit from reduced tariffs on two separate occasions – on
the implementation date and January 1 of next year.
The
RoK inked the bilateral trade deal with
Exports,
the RoK's key growth engine, have dropped for the seventh straight month this
year, affecting the fourth biggest economy in Asia amidst a global economic
slowdown, global oil price nosedive and currency fluctuations.
Construction
begins on bridge on key border road
Construction
began on August 31 on the Tan An bridge on a key transport route connecting
the southern
The
initiative is being implemented in celebration of the 70 th anniversary of
the August Revolution (August 19) and National Day (September 2).
The
bridge, 612 metres in length and 12 metres wide, spans the Sang channel,
linking the Long An and Tan An communes in Tan Chau town.
It has
a total investment of 572 billion VND (26 million USD) and is scheduled to be
completed in late 2017.
Speaking
at the ceremony, Vice Chairman of the provincial People’s Committee Vo Anh
Kiet underscored that the bridge will help shorten the time required both by
road and by water from the province to
At the
Government’s monthly meeting on August 31, the MoPI highlighted the slow pace
of the consumer price index, the quickened credit growth rate compared to the
same period last year, stable interest rates and flexible adjustments to
exchange rates.
During
the eight-month period, industries posted much higher growth rates than those
of previous years, especially in processing and manufacturing. Aggregate
demand and purchase power also improved with a substantial increase in the
total retail sales of goods and services.
A rise
was seen in registered and implemented foreign direct investment and
The
ministry also underlined that social welfare, political security and social
order and safety were ensured from January-August.
During
the two-day meeting through September 1, the Government will scrutinise
reports on the 2016 draft socio-economic development plan, the public
investment plan between 2016-2020, the State budget use this year and
estimates for 2016 along with outcomes of the State-owned enterprise
restructuring in the eight months.
The
national plan on land use for the next five years and some draft laws will
also come under discussion.
Tra
fish sector needs strong brand name
The
creation and development of a powerful brand name will help the “tra” fish
sector secure a firm foothold in export outlets, especially the European
Union (EU), suggested experts.
Deputy
Head of the General Department of Fisheries Pham Anh Tuan said the EU is an
important market for the tra fish industry. The recent reduction in imports
from the market reflects economic recession, but EU countries still need
Vietnamese tra fish products in the long run, he added.
Alfons
van Buivenbode from the EU’s Centre for the Promotion of Imports from
Developing Countries said European customers are concerned about genuine
nutrition information and ingredients of the product on the labels and
packaging, including the code to trace the origin of the product, from
Vietnamese processing and export firms.
Determining
the optimal pricing is also important, according to Director of the Cleaner
Production Centre under the Hanoi University of Science and Technology Le Xuan
Thinh.
He
suggested businesses study technology transfer to farmers to reduce
production costs, citing up to 80 percent of food material for tra fish are
imported from overseas.
Meanwhile,
Chairman of the Vietnam Fisheries Association Nguyen Viet Thang recommended
enterprises diversify processed products to increase competitiveness.
Thang
highlighted the need for the tra fish sector to satisfy consumer requirements
to stand firm in both easy-going and choosy markets.
Currently,
Vietnamese tra fish products are being sold in 128 markets, nine markets
fewer than last year.
According
to the General Department of Customs, seafood export turnover had reached
over 3.84 billion USD by August this year with shrimp, tra fish and bivalve
mollus as staple products.
As of
the mid-July 2015, the tra fish sector alone had grossed 814.67 million USD
from exports, a year-on-year decline of 8.8 percent.
Major
markets such as the
Among
the markets, only the
Some
have attributed the decline to the sector’s failure to build a brand name and
improve the quality of its products.
Deputy
Director of the Vietnam Association of Seafood Exporters and Producers Le
Hang cited regional economic downturn and EUR and USD exchange rate
fluctuations as reasons behind dwindling tra fish exports in the first half
of this year.
Additionally,
consumer demand has yet to recover, she said, adding that the tra fish sector
itself is facing fierce competition from other native fish.
Export of
agro-forestry- aquatic products hit nearly US$20 billion
The
export of agro-forestry and aquatic products in August is estimated at
US$2.83 billion, bringing the total export revenue in eight months to
US$19.31 billion, down 4.8% against the corresponding period last year.
The
Ministry of Agriculture and Rural Development (MARD) reported that the export
of major agricultural products dipped 7.7% to US$9.18 billion, of which
coffee dropped 33.1%, rubber (10.2%) and rice (13.1%).
Seafood
export is estimated at US$4.13 billion, a fall of 17.5% over the same period
last year. Particularly, the
Meanwhile,
major forestry products jumped 8.2% to US$4.52 billion.
Vietnamese
airlines apply international standards for safety
Safety
is the most crucial factor for every airline. At a time when the aviation
industry is growing rapidly all around the world, passengers need reassurance
that they will enjoy a safe and comfortable journey.
Airlines
in
Obtaining
an internationally recognized safety certificate is a must for arguably every
carrier.
One of
the most highly regarded safety certificates is the IATA Operational Safety
Audit (IOSA), granted by the International Air Transportation Association
(IATA).
A
benchmark for global safety management in airlines, the IOSA was created in
2001 with an aim to assess the operational management and control systems of
an airline. IOSA uses internationally recognized quality audit principles and
is designed to conduct audits in a standardized and consistent manner.
To
receive IOSA certification is a confirmation of an airline’s commitment to
operating with maximum safety, which involves “a great deal of hard work and
requires the significant commitment of people, time and resources,” according
to Blair Cowles, IATA’s Asia-Pacific regional director for safety and flight
operations.
Obtaining
the IOSA is a must for any airline that wishes to become a member of the
IATA, a trade association of the world’s airlines with 260 members, primarily
major carriers.
Among
airlines in
Vietjet’s
managing director Luu Duc Khanh acknowledges that the aviation industry has
been growing faster and faster across the
Vietjet
boasts an impressive technical reliability ratio of 99.49% and the airline
announced earlier this month that it had received the internationally
recognized safety certificate from IATA.
Vietjet
said such an accomplishment marked a new leap in its development path and was
a hugely significant achievement for passengers on both domestic and
international flights.
“The
IOSA certification proves that Vietjet’s top priority is flight safety,”
Khanh said. “With our commitment to complying with world-class safety and
security standards, we expect to bring our clients safe, comfortable, joyful
and friendly flights.”
Besides
granting the IOSA, the IATA also works to ensure that the aviation
infrastructure and the administrative and operational systems of countries in
the Asia-Pacific region, including
Cowles
said Vietjet currently possesses a fleet of modern aircraft so
A top
Vietnamese transport official has also encouraged Vietjet to invest in
aviation infrastructure development, and is confident that it can do so
effectively.
The
Vietnamese Ministry of Transport has recently submitted a proposal to the
government calling for the mobilization of investment from the private sector
to upgrade the country’s aviation infrastructure, according to Deputy
Minister Nguyen Nhat.
“Vietjet
has good experience in business administration, so it will surely make good
use of the aviation infrastructure when joining the ministry’s program,” the
deputy minister said at a ceremony where Vietjet was granted the IOSA
certification earlier August.
“Vietjet
should consider investing in aviation infrastructure to create a complete
chain of services to better serve its passengers.”
Top
mobile retailer to open food store chain: reports
Mobile
World Investment Corporation,
The
company said it would invest between VND20 billion and VND50 billion in this
year-long "trial" phase.
Dang
Thanh Phong, spokesman of the company, better known as The Gioi Di Dong, told
news website Saigon Times Online that the first five stores will be launched
at several districts in
Each
store will cover an area of 150-400 square meters and sell products like
meat, fish, vegetables and fruits from 6 a.m. to 9 p.m., he said, adding that
the company has yet to come up with the chain's name.
CEO
Tran Kinh Doanh was quoted as saying in news website Zing.vn that its chain
will target customers of groceries and traditional markets.
He
said the company expects to open 6,000-8,000 stores by 2020, taking up 10-15%
of market share.
With
more than 450 stores selling cell phones, tablets, laptops and their
accessories around the country, The Gioi Di Dong owns 30% share of mobile market,
followed by IT giant FPT's chain FPT Shop with 10%.
The
company reported the revenues of VND12.92 trillion (US$566.26 million) over
the first seven months, up 158% year on year.
It
also owns a chain of 37 electronic stores known as Dien May Xanh.
National
economy stays stable
At the
cabinet monthly meeting on August 31, the Ministry pointed out the slow pace
of the consumer price index (CPI), the rapid credit growth rate compared to
last year's same period, stable interest rates and flexible adjustments to
exchange rates.
During
the eight-month period, industries were much higher growth rates than those
of previous years, notably in processing and manufacturing. Aggregate demand
and purchase power also improved with a sharp rise in the total retail sales
of goods and services.
The
country sustained its growth momentum in overseas shipments and the import of
materials and machinery serving production and exports, the MoPI said, noting
that trade deficits in the reviewed period were kept under control.
The
ministry stated that progressed was also seen in social welfare, political
security and social order and safety.
During
the two-day meeting through September 1, the Government will scrutinise
reports on the 2016 draft socio-economic development plan, the public
investment plan between 2016-2020, the State budget for this year and
estimates for 2016, and the results of the State-owned enterprise
restructuring in the eight months.
The
national plan on land use for the next five years and some draft laws will be
touched upon during the meeting.
Number
of workers overseas up by 8%
Nearly
80,000 Vietnamese labourers went to work abroad from January to August this
year, marking an increase of 8.21%, over the same period last year,
statistics from the Ministry of Labour, Invalids and Social Affairs' Overseas
Labour Management Department (OLMD) show.
With
this figure, the country met 83.98% of the target for this year. It had
planned to send 90,000 workers abroad this year.
During
just the month of August, the statistics from enterprises show that the total
of labourers working abroad was 11,255, of which 3,590 were women.
Over
the last few years,
In
August, the OLMD selected 47 enterprises which can provide Vietnamese nurses
for families and 14 enterprises which can provide fishing boat members
willing to work in
According
to the Department, the enterprises sending workers to
In
August, the Ministry signed a memorandum about the selection and employment
of Vietnamese workers in
China
Eastern Airlines to launch direct flights to Vietnam
The
Civil Aviation Administration of Vietnam has issued permits allowing China
Eastern Airlines to offer direct flights connecting
China
Eastern Airlines will soon start conducting two round trip flights per week
using Boeing B737 on the Kunming-Hanoi route and three per week on the
China
Eastern Airlines, headquartered in
So
far, the airline has carried out flights to more than 100 destinations around
the globe and has cooperated with American Airlines, Air France, British Airways,
Qantas and Cathay Pacific.
Garment
firms await TPP opportunities
Garments
and textile businesses are striving hard to be at the forefront to avail
opportunities ushered in by the Trans-Pacific Partnership (TPP).
As
garments and textile sector is viewed as one of the industries which will
benefit the most from TPP, many businesses are proactively putting in place
measures to be able to avail these opportunities such as investing in modern
production lines, upgrading facilities, improving design and product quality
and finding access to the market.
Their
efforts are being met by encouraging results.
Specifically,
six garments and textile businesses listed on the stock exchange have
recorded strong growth in terms of both revenue and profits in the second
quarter of this year.
Total
net revenue of these six businesses in the second quarter reached more than
VND1.8 trillion (US$79.9 million), a year-on-year rise of 20.74 per cent.
Their total after-tax profit amounted to nearly VND110 billion ($4.88 million),
a year-on-year increase of 29 per cent.
Thanh
Cong Trade Investment and Garment Joint Stock Company continued to lead the
sector with the highest amount of turnover and profit. It recorded a net
revenue of nearly VND730 billion ($32.4 million) in the second quarter and an
after-tax profit of nearly VND53 billion ($2.35 million), a year-on-year rise
of 9.96 per cent and 13.4 per cent, respectively.
The
company is investing in a weaving-dying-garment factory with a total
investment capital of $30 million during the 2014-17 period.
TNG
Trade and Investment Joint Stock Company is another example. The company
reaped a net revenue of VND500 billion ($22.2 million) in the second quarter
and an after-tax profit of nearly VND16 billion ($710,000), a year-on-year rise
of 56 per cent and 42 per cent, respectively.
TNG
has put into operation one more cotton production line, worth more than VND40
billion ($1.77 million). It has a capacity three times higher than that of
the current production line of the company.
Nguyen
Minh Hoa, a representative from the DHA Garment Export Company, told VOV (The
Voice of Viet Nam) that the company had enlisted many steps such as studying
products suitable for different markets and choose channels to buy raw
materials for producing products meeting requirements of quality and origin.
At
present, the
Vietnamese
businesses have actively expanded markets in recent years. Particularly,
following the signing of the TPP, the "Made in
Vietnamese
businesses to join the global market through strong online presence
A
seminar discussing e-commerce and development opportunities for small and
medium size enterprises (SMEs) under the conditions of new trade agreements
took place in Danang city in
The
seminar, hosted by the Vietnam Chamber of Commerce and Industry which
represents Vietnamese business community and sponsored by VeriSign, a leading
provider of Internet-based secure electronic commerce services and digital
certificate solutions, has provided Vietnamese businesses with useful
information on how to make a strong online presence with effective domain
names in order to be competitive in the global market.
In
reality,
Therefore,
Vietnamese businesses, especially SMEs, need to prepare for the impact of the
new global business environment and strengthen their competitiveness in
foreign trade, particularly through online technologies like e-commerce.
There
are approximately three billion people around the world that are online
today, and in 2014 more than $300 billion in e-commerce sales was conducted
in the US and over $1.3 trillion in e-commerce sales was conducted globally.
According
to the
“E-commerce
is bringing a lot of opportunities for SMEs thanks to its ability to allow
24/7 customer sales, reduced marketing and transaction expenses, and an
overall market expansion to regions outside
“Thus,
SMEs need to invest to build an online presence in order to compete in this
new business environment. With a strong online brand, they can grow into
global businesses with easy access to partners and customers around the world
and increase their profitability in the long term,” Hung asserted.
In
order to seize this opportunity, it is important for businesses to build and
develop their own online brands with a reputable domain name.
Nguyen
Minh Thai, business development director of Mat Bao Network, one of leading
registrars in Vietnam, stated, “Choosing an appropriate domain name is the
first step in building a successful online presence. While there are many
domains available, .COM is the global standard for doing business online.”
Mat
Bao, who has been a leader in the domain industry for many years, often
advises their customers to choose .COM due to its availability, reliability
and stability to build their online brands, especially when they want to
reach larger markets.
According
to a Searchmetrics’ analysis, out of a sample of 100,000,000 links on the
Internet, 75 per cent of them go back to .COM domain names.
Bright
prospects draw in Taiwanese investors
John
Tang, director of the Taiwan Trade Centre’s (TAITRA) office in
According
to the statistics of the Foreign Investment Agency under the Ministry of
Planning and Investment, there are 2,429 valid Taiwanese projects in
According
to Tang, a bigger wave of Taiwanese investors might flock to Vietnam, as the
market will open up more opportunities with the wide range of new free trade
agreements (FTAs) coming into force. Many Taiwan-based textile firms
intend to reel out new investments in
In
addition, the Taiwanese government sees an enormous potential in
Referring
to the supporting industries, Tang underlined that Samsung has injected
billions of US dollars into smartphone production plants in the country and
considers
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Tư, 2 tháng 9, 2015
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