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BUSINESS IN BRIEF
31/10
Czech
enterprises consider intensifying presence in
Representatives of more than 20 Czech enterprises on October 23 arrived to These enterprises operate in various sectors, including electronics, electricity, construction, waste and water treatment, and mechanical industry, among others. Within the framework of the visit, these enterprises have participated in the 24th Vietnam International Industrial Fair (VIIF) at the Vietnam Exhibition Fair Centre, and simultaneously organised workshops in “ According to Czech enterprises, sectors having the most promising opportunities to invest in are the automotive, chemical industry, environmental technology, safety and security, as well as medical equipment, agriculture and food, because the speed of Vietnamese economic development is astounding. According to industry insiders, the Vietnamese government is prioritising industrial modernisation. Furthermore, as a developing country, In 2014, the bilateral trade turnover between the two countries reached $294 million, up 24 per cent on-year. In the first eight months of this year, the figure stood at $165 million. As of September, the Dong Nai’s IZs double yearly FDI target in ten months Between January and October this year, Dong Nai’s industrial zones (IZs) have attracted $2.15 billion in foreign direct investment, exceeding twice the province’s 2015 target. Notably, as of October 20, the southern province’s IZs have attracted the total investment capital of $1.56 billion in 82 newly-registered projects and $592 million to expand the capital of 75 existing projects. In the first 12 days of October alone, foreign investors registered $350 million into 11 newly-registered projects and added approximately $225 million to five existing projects. “80 per cent of the capital is invested in the supporting industries for mechanical engineering, electronics, textile and garments, and high-technology projects. We especially prefer high-technology as well as environmentally friendly projects,” said Mai Van Nhon, deputy director of the Dong Nai Industrial Zones Management Authority. Dong Nai is considered an ideal destination for foreign investors due to abundant human resources, favourable policies, and developed infrastructure, as well as convenient transportation with many national arterial roads. “FDI plays a key role in the province’s socio-economic development. Thus, the province focuses on reforming administrative procedures as well as organising trading promotion activities in order to boost FDI inflows,” he added. Economic forum to further cement South Korean economic ties On November 13, the Vietnam Chamber of Commerce and Industry (VCCI) will organise a Vietnamese-South Korean economic forum in The forum is expected to attract more than 400 representatives from enterprises and economic experts from the two countries. The event aims to promote bilateral trade relationship in the context of In the framework of the event, the two parties will focus on discussing cooperation opportunities in three sectors, namely supporting industry, agriculture, and infrastructure and energy. Besides, the two countries’ enterprises will have opportunities to strike up partnerships, as well as find investment opportunities in the industrial and economic zones and localities. VCCI is an important bridge to increase trade between the two countries’ enterprises via organising trade events, economic forums, and workshops. The bilateral trade turnover between the two countries stood at $27 billion in 2014, up 31 per cent on-year. The figure is expected to reach $30 billion in 2015. Phu Nhuan issues bonds to cover expansion Phu Nhuan Jewelry JSC (PNJ) has announced the plan of issuing a volume of VND500 billion ($22.93 million) corporate bonds this year to raise capital. Particularly, PNJ will issue a maximum bond cluster worth $22.93 million, valued at VND1 million ($45.87) per bond, with a maturity of one year. The amount of money collected will be spent on restructuring VND350 billion ($16.1 million) of the company's short-term loans and developing a VND150 billion ($6.88 million) retailer network. The bonds will be divided into two types—secured bond, which are stakes owned by shareholders with benefits such as dividends and rights to purchase shares, and non-secured bonds. The bonds’ interest rate is said to be based on the market interest rate at the time of issuance and will be fixed until the maturity date. Earlier this month, PNJ announced that it would raise the company's capital by 20 per cent to VND1.2 trillion ($55 million) from the initial VND982.75 billion ($45 million) by offering 20 million additional shares to the company's current shareholders. This plan has been now cancelled and replaced by the new plan of bond issuance. PNJ said that it needs prompt financial resources by the end of this year to facilitate its business expansion ambitions, which is the reason why the latter plan has been chosen. Under the former plan, the company would have had to wait until next year for the cash flow from the share offering to pour in. Jetstar Pacific opens Chu Lai – Buon Ma Thuot route Low-cost airline Jetstar Pacific on October 27 announced the addition of a domestic air route linking Chu Lai (Quang The airline will conduct three round-trip flights per week every Tuesday, Thursday and Saturday, using the 180-seat Airbus A320 plane. With a total travel-time of 50 minutes, flights are scheduled to take off at 13:25 from Chu Lai airport and 14:50 from Buon Ma Thuot. Nearly 2,000 passengers have booked tickets for the air route so far. Earlier, Jetstar Pacific launched two new routes linking According to Jetstar Pacific Director Le Hong Ha, the launching of the air routes aims to help people have easier access to air travel. By providing low-cost aviation services and opening new air routes regularly, Jetstar Pacific hopes to create opportunities for everyone to discover attractive tourist destinations while contributing to stimulating tourism development in the localities, he said. To celebrate the launching of the three new routes, Jetstar Pacific is running a promotion programme for 25 domestic and international air routes. Under the programme, which will run until October 28, passengers only have to pay for one-way fares and are applicable to receive a return ticket free of charge. $170 million in government bond sold at auction The Hanoi Stock Exchange has announced details of the auction of government bonds by the Vietnam Development Bank (VDB) on October 24. The total bond offering was VND5 trillion with four terms of maturities. VND2 trillion ($89.62 million) worth of bonds issued were available in both three- and five-year terms, while VND500 billion ($22.40 million) were available in both ten- or 15-year terms. There were six participants in the auction of the three-year bonds, with a total placement of VND6 trillion ($268.86 million) with yields from 6.45 to 6.8 per cent per annum. All VND2 trillion worth of bonds were sold with a winning yield of 6.63 per cent per annum, 0.07 per cent lower than at the last auction. There were five participants in the five-year bond auction, with a total placement of VND2.4 trillion ($107.54 million) with yields of 7-7.45 per cent per annum. The auction sold VND1.9 trillion ($85.13 million) with a winning yield of 7.35 per cent per annum, 0.25 per cent higher than the last auction. The ten and 15 year bonds were not sold. Since the beginning of this year the VDB has successfully sold VND15.45 trillion ($692.31 million) worth of government bonds. Thai firm expands production in Vietnam Tostem Thai is among the first Thai companies to relocate its assembly lines to Vietnam in a bid to grasp opportunities to be brought by the ASEAN Economic Community (AEC) once it is formed at the end of the year. The aluminium producer, established in 1923, had served as an original equipment manufacturer (OEM) for its clients in Vietnam for years before its factory was put into operation in Ho Chi Minh City in October last year. With the facility, Tostem Thai expects to serve demands in both Vietnamese and regional markets, especially with positive signs in the local sector, said General Director Apirak Chotsasitorn. With its long-term development strategy in To reach this goal, Tostem Thai has launched a number of marketing campaigns and production expansion programmes. Most recently, it took part in Melatex Vietnam 2015. US group to invest in Thua Thien-Hue The PSL group from the Accordingly, PLS will upgrade, enlarge and operate 7 wharfs in Chan May port and construct and run port urban areas, hi-tech parks, industrial zones and non-tariff areas at the Chan May-Lang Co economic zone. It will also build a wind-power and solar power complex and a biomass power plant with a capacity of 500MW and a white sand processing plant at Phong Dien IZ. Addressing the signing ceremony, Chairman of the provincial People’s Committee Nguyen Van Cao hoped that PLS projects will contribute to the province’s socio-economic development. Thua Thien-Hue province pledged to create a niche for the group to effectively implement projects, Cao said. Vietnam sees sharp rises in new companies, re-openings Figures from the General Statistics Office showed 77,542 new companies with a combined capital of VND486.1 trillion (US$21.86 billion) were formed during the first ten months this year, up 29% in number and 38% in the capital value year-on-year. Together they are expected to create more than 1.15 million jobs. More than 16,000 suspended businesses have also returned to operation, up 25% from the same period last year. The number of shutdowns dropped slightly to more than 7,600, mostly which were small businesses with registered capital of less than VND10 billion. A statement from the statistics office said businesses are benefiting from a series of recent reforms including more liberal regulations in real estate and an easing of many restrictions in investments. The country has forecast the quickest economic growth rate since 2010 at over 6.5% this year and has succeeded in controlling inflation and a troublesome blight of bad debts. VBL released its sustainability report 2014 Vietnam Brewery Limited has released its sustainability report 2014 - “Brewing a Better World” for the first time, highlighting its long-term commitment to sustainable development in The report focuses on six main areas, including advocating responsible consumption, protecting water resources, reducing carbon dioxide (CO2) emissions, growing with communities, sourcing sustainably, and promoting health and safety. Over the past few years, the company (VBL) has made remarkable progress in its sustainability work. Specifically, while advocating responsible drinking, it has collaborated with the National Traffic Safety Committee and the provincial Traffic Safety Committees to implement its “Drink Don’t Drive” communication campaign since 2008. Internally, VBL has in place the Alcohol Policy since 2003 that is cascaded down to all VBL employees within this organisation. VBL has also protected water resources. It invests massively in production water saving technologies and state-of-the-art wastewater treatment systems. In 2014, it achieved an impressive reduction in water consumption by 5.9% to 3.07 hl/hl, down from 3.27 hl/hl in 2013. At VBL, waste water is strictly treated to ensure the quality of water discharged to the water surface complies with all laws and regulations. Additionally, over the past four years, VBL has continuously reduced CO2 emissions in its production operations, from 5.5 kilogramme/hl to 3.69 kg/hl in 2014. Especially with its investment in biomass based energy generation, VBL plans to reduce CO2 emissions further to 2.34kg/hl in 2015. 100 per cent of its new fridges are also compliant with the HEINEKEN Green Fridge Policy. VBL’s endeavours are also aimed at strategic community investments in priority areas of water and education. Throughout Also VBL grants “Towards Water Security” scholarships to help young environmental scientists and students to realise their water study ambitions and make effective contributions to water protection in the future in In addition, VBL conducts many community support programmes such as Warm Spring, Dream Moon and blood donations, with the enthusiastic participation of our employees and business partners. These programmes support thousands of needy households, elderly and children. Besides, 55% of VBL’s suppliers have signed Heineken’s world-wide Supplier Code, and VBL is on track towards its 2015 target of 100 per cent. VBL has also conducted yearly training and activities to place workplace safety and health as a top priority in the mindset of all employees from all functions. “While sustainability related initiatives have been a part of VBL for some time, this year is the first time that we have published our sustainability report. Our approach is aligned with the HEINEKEN group’s strategy, ‘Brewing a Better World’, to build a sustainable business in Power price in The output and retail price of electricity in Those expenses include asset depreciation, fuel, raw materials, compensation and overhaul, hired services, business development, and wages for employees. But among those costs, state agencies can only regulate the rates for asset depreciation and wages, leaving the remaining up to power firms, including those under state-run conglomerate Vietnam Electricity (EVN), Dr. Le Duc Lam, from the Vietnam Union of Sustainable Energy, said on October 16. In addition, the cost of electricity generation in Specifically, fuel consumption in These losses in burning fuel for power generation and transmission must eventually be paid for by consumers, Dr. Lam added. Electricity power transmission and distribution losses in Vietnam, compared to output, averaged 8.49 percent in the 2011-14 period, lower than Cambodia (28%), Myanmar (22%) and Indonesia (9%), but still higher than Thailand and Brunei (7%), Malaysia (6%), and Singapore (5%), according to a World Bank report. The efficiency of new power plants in Prof. Nguyen Minh Due, from the Hanoi University of Science and Technology, said electricity prices have increased eight times since 2009, bringing the average retail rate, including tax, to over VND1,700 (US8.3 cents) per kWh. Given that electricity quotes should be maintained for macroeconomic stability, Prof. Due put forward three solutions: promoting a competitive electricity market, improving the efficiency of electricity generation and consumption, and accelerating the privatization of state-run firms to spur the participation of the private sector and foreign-invested companies in the power industry. It is hoped that consumers in In July, Nguyen Anh Tuan, head of the Electricity Regulatory Authority of Vietnam (ERAV), told Tuoi Tre (Youth) newspaper that EVN will lose its monopoly in 2016 thanks to a competitive wholesale electricity market. The wholesale market will be redesigned to increase competitiveness and reduce EVN’s exclusive control of power in the country, Tuan said. There are now many power generators in Both EVN and ERAV operate under the Ministry of Industry and Trade. SMEs face tough market as FTAs kick in Small- and medium-sized enterprises (SMEs) contribute 40% of national GDP but the proportion is expected to fall as competition will increase under new international free trade agreements. Under such a scenario, SMEs will likely experience a smaller market share, decline in production, and more bankruptcies. SMEs make up 95% of total national enterprises. The economy also includes 3.5 million privately run household businesses, 10 million farmer households and 140,000 co-operatives. SMEs are involved in every kind of business, including retail, wholesale, manufacturing, production and in fields that are typically State-owned, such as electricity, gas, water supply, mineral exploitation, information and telecommunications. Five percent of SMEs are involved in other public services such as education and healthcare. "SMEs have contributed 40% of GDP, 61% of jobs, 31% of export turnover, 30% State budget and attracted 38% of social investment," To Hoai Nam, deputy chairman of the Small-and Medium-Sized Enterprises Association, was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon) newspaper. "SMEs' economic efficiency is only 0.7 times that of foreign invested companies, but 2.3 times higher than State-owned enterprises," he added. Nguyen Thang, director of the Society and Science Institute's Forecast and Analysis Centre, said, "The size of SMEs is smaller because their business fields are more limited. Since 2010, most SMEs have cut their workforce by nearly a third. For individual workshops, most of them only have two to four workers." Besides being limited in size, they are weak in creating value-added products. Most SMEs do business in trade and service, while enterprises working in manufacturing and production with high-level links with the international market are small. To support SMEs, the Government and authorities have created 14 programmes for information management, 15 for technology development, and eight others for finance and tax. However, many experts said that authorities had designed policies but not carried them out. No report had been issued on the effectiveness of such policies to the SME community. "These policies only support SMEs, but they are not able to protect them," While State-owned enterprises, most of them being groups or corporations, have large investments, SMEs are limited in capital, lack high-quality human resources and modern technology and have poor business governance. They also find it hard to borrow loans from banks. Sometimes, SMEs have to borrow loans at interest of over 20% each year. "SMEs mostly do not receive legal and information assistance to meet international standards for their products and services so they can compete with foreign companies," "We can find global plastic market analysis information much easier than figures about the local market," Nguyen Hoang Ngan, general director of Binh Minh Plastics Joint Stock Company, said. The company has sought support from all authorities and business associations, but has found little information. In addition, the SME community lacks maturity and is not large enough to join global supply chains. SMEs in agriculture, garments and textiles, footwear, food processing and wood furniture depend on imported material and production technology. Under global integration, "To take advantage of this opportunity, the Government should release new policies to support SMEs so they can overcome capital limitation, reduce risks, and increase high-quality human resource training and other conditions to promote reform and creativity," "Developed nations have certain conditions for SMEs. SMEs don't need to become bigger. They only need to develop a stable market share and have close links with global supply chains" he added. VIB, HPT cooperate to deploy Basel II Standardised Solution Vietnam International Bank (VIB) and HPT Vietnam Corporation (HPT) has held the kick - off ceremony for the “Basel II Standardised Solution” project. As one of the 10 banks selected by the State Bank of Vietnam (SBV) to implement Basel II – a set of international banking regulations for capital adequacy, based on credit risk, market risk and operational risk, VIB has decided to choose HPT as the local partner to implement the “Basel II Standardised Solution” of BlackIce Enterprise Risk Management Inc. With this project launch, VIB expects to fully meet the SBV’s requirements for Basel II Standardised capital by the end of 2015. The Basel II Standardised Solution, called BlackIce ERA, implemented by HPT, is a compliant and working solution that is capable of integrating data in a logical manner from source systems, performing the necessary calculations and analytics and then populating reports required for Basel II as well as overall best practice risk management analytics. Hence, this is an open platform software application that not only delivers end-to-end data and analytical standards to meet all of the regulatory expectations of Basel II but also helps VIB to take advantage of advanced measurement approaches of Basel II. Applying Basel II is an important and positive step for VIB, which is also compliant with regulation of the SBV with respect to risk management. The successfully implemented VIB - Basel II Standardised Solution will provide VIB with an international- standard best practice risk management framework. “It is our great honor to help VIB break the ice with a powerful framework and calculator, serving their risk assessment performance under Basel II standards. We commit to invest time, resources and make every effort to make sure this project will succeed, supporting VIB to remain one of the most prestigious banks in Vietnam,” Nguyen Viet Anh, vice director of HPT Application Solution and Service Center (HAS), said at the ceremony. Founded in 1996, VIB now has the highest credit strength rating in Vietnam, having recently been upgraded by Moody’s to a positive outlook. As of mid-June, VIB had total assets of nearly VND80 trillion ($3.7 billion). Founded in 1995, HPT provides IT services from infrastructure, integration to application software solution. Canada-based BlackIce Enterprise Risk Management Inc is a global risk management consulting and technology firm, having been part of numerous Basel implementations and risk management engagements around the world. Industrial production grows nearly 10 percent in ten months Vietnam’s index of industrial production (IIP) in October picked up 8.8 percent over the same month last year, contributing to a year-on-year increase of 9.7 percent in the first ten months of the year, announced the General Statistics Office (GSO). The GSO reported that the electronic, computer and optical sector had the strongest growth rate of 38.9 percent in IIP, followed by automobiles (27.4 percent), leather and related products (16.8 percent), and garment (15.6 percent). However, other industrial sectors witnessed low production growth during the period such as food, beverages, chemicals, pharmaceutical chemistry and tobacco. High ten-month IIP growth in was seen in Thai Nguyen province (121.9 percent), Quang Nam province (31.9 percent), Hai Phong city (15.8 percent), Da Nang city (14.1 percent), and Hai Duong province (10.3 percent). The GSO also pointed to sectors with large IIP growth in October against the same month last year, including automobiles (54.5 percent), television (49.6 percent), mobile phones (42.6 percent), coiled steel sheets (18.7 percent), leather footwear (18.1 percent) and powdered milk (17.9 percent). As of October 1, the inventory index of the processing and manufacturing industry had experienced a yearly surge of 9.8 percent. First AEON shopping centre in Hanoi inaugurated The Japanese retail AEON Group held a ceremony on October 28 to put its first-ever shopping mall in Hanoi into operation. Covering 9.6 hectares, the AEON MALL Long Bien has a total investment capital of 200 million USD with a total leasable area of around 110,000 square metres. The Hanoi shopping centre is the third instalment of Japan’s single-largest shopping mall developer and operator in Vietnam. It is expected to offer new shopping experiences and advocate new lifestyles for local residents in Hanoi, contributing to boosting investment and business in the city. Addressing the inaugurating ceremony, Chairman of the municipal People’s Committee Nguyen The Thao appreciated the cooperation and contribution of Japanese investors in general and the AEON Group in particular. The city pledged to create favourable conditions for investors to do business effectively, contributing to making Hanoi a safe destination for investment. Hanoi is currently home to 721 foreign direct investment (FDI) projects from Japan with total registered investments of over 4.7 billion USD. As many as 23 Japanese official development assistance (ODA) projects worth 2.9 billion USD have been implemented in the city. DPRK delegation seeks investment opportunities in Hau Giang A delegation of the Democratic People’s Republic of Korea (DPRK) led by Minister of Foreign Trade Ri Ryong-nam visited the Mekong Delta province of Hau Giang on October 27-28 to inquire into possible investment cooperation. Meeting Secretary of the provincial Party Committee and Chairman of the provincial People’s Committee Tran Cong Chanh on October 28, Minister Ri Ryong-nam said the visit is to seek business partners and foster friendship between the two countries. The Hau Giang leader said the province is agriculture-reliant with 80 percent of its population living on farming. With 80 percent of land area used for farming, the province produces more than 1 million tonnes of food each year, including over 600,000 tonnes of rice. Home to two industrial parks and four industrial clusters, Hau Giang has attracted enterprises operating in thermal power and paper plants, seafood processing, and beverages. The province is compiling a list of projects calling for domestic and foreign investment, focusing on farming, trade-services, health care, environment, education-training and vocational training, he said. During the stay, the DPRK delegation visited several fish farms in Nga Bay township and Vi Thanh city, the Casuco sugar plant and surveyed the local fisheries sector which produces and processes 1,900 tonnes annually. Newly-established enterprise capital up 46 percent in Oct Vietnam has approximately 9,200 newly-established businesses with 65.2 trillion VND (2.92 billion USD) in total registered capital in October, a rise of 30.6 percent in number and 46.4 percent in capital from last month. According to the General Statistics Office, the average registered capital per business is 7.1 billion VND (318,000 USD), up 12.1 percent against the previous month. In the first 10 months of this year, more than 77,540 enterprises were newly established, registering a combined capital of 486.1 trillion VND (21.78 billion USD), a 29.2 percent increase in number and 37.9 percent in capital compared to the same period last year. Operational firms were also reported to have added 737.8 trillion VND (over 33 billion USD) during the period, bringing the capital pumped into the economy up to nearly 1.22 quadrillion VND (over 54.8 billion USD). The country saw about 60,164 enterprises temporarily suspend operations in the last ten months, up 29.1 percent, while another 7,641 permanently stopped operating, down 1.2 percent, most of whom registered capital below 10 billion VND (448,000 USD). In addition, approximately 16,200 businesses nationwide resumed operations, a year-on-year increase of 24.6 percent. Netherlands supports Vietnam to develop smart agriculture Supporting Vietnam to implement and duplicate smart agricultural models adaptive to climate change was the main focus of a workshop between Vietnamese and Dutch experts held in Hanoi on October 28. Vice Minister for Agriculture of the Netherlands Hans Hoogeveen said farmers are the key players in driving agricultural adaptation to climate change. Therefore, it is necessary to help farmers select varieties and apply advanced cultivation technology as well as join the global high-added value chains to increase their income, he suggested. The Netherlands cam send technological experts to Vietnamese farmhouses to support them in production and processing stages to avoid food waste and loss, he said. Deputy Minister of Agriculture and Rural Development Cao Duc Phat said he hopes Dutch State-run agencies and businesses will cooperate with Vietnam to develop sustainable agriculture. He particularly noted the improvements to productivity and the creation of safe and environmentally-friendly food products. The Vietnamese and Dutch officials agreed on future coordination orientations, including the duplication of food loss and waste prevention and green growth models along with the expansion of bilateral affiliation to science-technology in selecting crop and animal varieties, and seafood breeding. In 2013, Vietnam along with the Netherlands, South Africa and the US proposed the establishment of the Alliance for Climate-Smart Agriculture (CSA), which was introduced to public at a session of the UN Summit on climate change in New York in September 2014. Dong Nai seeks to navigate key trade markets A seminar promoting Vietnam’s exports to the US, Japan, China and the United Arab Emirates (UAE) was held in the southern province of Dong Nai on October 28. Over the past five years, Dong Nai’s economy has grown by an annual average of 12 percent, with more than 1,200 foreign-invested projects from 42 countries and territories and over 19,500 domestic firms, according to Vice Chairman of the provincial People’s Committee Tran Van Vinh. The US accounts for 31 percent of the province’s total exports, followed by Japan (10 percent) and China (8.5 percent), he added. Dao Tran Nhan, Commercial Counsellor in the US, said Vietnam’s gross domestic product (GDP) and exports will increase by a respective 25 percent and 32 percent following the enforcement of the Trans-Pacific Partnership, which covers a 800-million population market and makes up 40 percent of the world’s GDP and 30 percent of the global trade. He described the US as a major and penetrable market, adding that Vietnamese firms will still meet difficulties due to weak export capacity, transport and technical barriers and food safety. Vietnamese Commercial Counsellors in Japan and China hailed the recent growing shipments of fruits and agricultural products, aside from apparel, fibre, machinery and fisheries. Commercial Counsellor in the UAE Pham Trung Nghia said UAE is a significant market and a gateway to the Middle East and Africa. However, he also expressed concern over inflated import prices due to the high local costs of transport and preservation. Vietnamese Commercial Counsellors assured over 100 local export-import firms that they will be provided with all possible support to bring Vietnam’s products to foreign countries. Foreign investors eye Vietnam’s interior design market The EU-Vietnam Business Network (EVBN) organized a Vietnam-EU trade promotion program under theme of “Lifestyle Trade Mission to Vietnam 2015” featuring indoor decoration on October 27. Mrs. Delphine Rousselet Director of EU-Vietnam Business Network Project said that 11 companies from France, Italia, Spain, the Unied Kingdom, Portugal and Belgium participated in the event. Vietnam's population has reached 90 million people and that is a potential market for luxury interior decoration and industrial production, said Mr. David Holkinson Design Director of design firm Noor Ho Chi Minh. Statistics of Vietnam Chamber of Commerce and Industry (VCCI) showed that domestic consumption of high quality interior decoration and furniture products has reached US$ 2. 5 billion in recent years, including 20 percents of domestic interior decoration goods and 80 percents of products importing from Europe. With Vietnam's economic growth rate, foreign investors expect the consumption of interior design of Vietnamese people will increase rapidly in the upcoming time Tien Sa Port set for major upgrade Da Nang Port, the largest in central Viet Nam, will invest VND1 trillion (US$47.6 million) for the second phase upgrade of Tien Sa Port in the second quarter next year. Chairman of Da Nang Port Company Nguyen Thu told Viet Nam News that the upgrade was aimed at raising the port's standards to an international level in the coming years. "We have raised funds ourselves and via shareholders for the second phase of Tien Sa Port's upgrade in the 2016-18 period. The port was designed to handle 14 million tonnes of cargo, including 800,000 TEUs (twenty-foot equivalent unit), in 2025," Thu said. "We decided not to use Official Development Assistance (ODA) funds for the port, and hope to accelerate the construction process to begin operations soon," he said. Company General Director Nguyen Huu Sia said the Foreign Trade Bank of Viet Nam (Vietcombank), the Bank of Investment and Development of Viet Nam (BIDV) and the city's Investment and Development Fund have agreed to provide loans for the project. "We have also raised VND350 billion ($16.6 million) ourselves for the project, and have called for investment from shareholders and other sources," Sia said. As scheduled, Tien Sa Port will be built as a ‘valley' of logistics, warehouse, transport and digital customer clearance services, besides having representative offices of shipping companies and banks. Sia said two piers, measuring 310m and 210m in length, would be constructed to dock container ships. Last year, Da Nang's ports handled a record six million tonnes of cargo, and hosted nearly 120,000 tourists disembarking from cruises. The company also sold more than 8.3 million shares, worth 12.57 per cent of the charter capital, in its initial public offering (IPO) in Ha Noi last June, with each share being offered at VND11,400 ($0.54). According to the port, the actual value of the state capital in the port is VND654.5 billion ($31.16 million). The company's revenue grew in the last three years (2011-13) from VND307.9 billion to VND446.5 billion ($14.6 million-$21.2 million), while its after-tax profit increased from VND8.6 billion to VND44.9 billion ($409,000-$2.1 million). The port, established in 1976, has operated as a limited company under the ownership of the Viet Nam National Shipping Lines (Vinalines) since 2008. According to Viet Nam's seaport system development plan towards 2020, Da Nang Port has been confirmed as a major commercial port in the region, making it one of the key gateways to the East Sea from the sub-Mekong region. It handles cargo communication and encourages economic development and tourism in Viet Nam's central provinces and the Central Highlands, southern Laos and northeast Thailand via the East-West Economic Corridor. Currently, Tien Sa Port allows access to only 30,000 DWT (deadweight tonnage) ships, while 50,000 DWT container ships can dock at Lien Chieu. The central city and the port of Kawasaki in Japan have agreed to open a shipping route connecting the two ports in the future. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
Thứ Bảy, 31 tháng 10, 2015
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