BUSINESS IN BRIEF 11/3
Damco expands
logistics capacity
Damco, one of the
world's leading third-party logistics providers, has unveiled its expanded
Southern Vietnam Logistics Center in Binh Duong province.
Covering 37,150 sq.m and
141 loading bays, the Customs-Trade Partnership Against Terrorism-certified
multi-purpose warehouse is equipped with the latest technologies such as a
High Jump CFS management system, RF scanning, a sprinkler system and a
digital CCTV system.
The new facility, an
important pillar of a multi-year capacity expansion plan, "will enable
Damco Vietnam's customers' supply chains to become more competitive by
optimizing their logistics costs while ensuring that tangible reduction of
their environmental emissions," according to a release from Damco
Vietnam.
Together with the recent
development of the Hai Phong warehouse in North Vietnam to 11,500 sq.m, Damco
Vietnam's warehouse capacity stands at 73,000 sq.m across five sites.
Damco's growing Contract
Logistics operation now has over 25,000 sq.m of space to serve customers in
the industrial, retail, fashion, and chemical sectors.
"Noteworthy is the
acquisition of our bonded license capability in Hai Phong and the possibility
to perform activities such as metal detection and CNI (Certificate of No
Impediment) and inner carton checking within our HCM facility," said
Marco Civardi, Area Managing Director for Damco in Vietnam and Cambodia.
Taxi company
Uber Vietnam cuts fares
Taxi company Uber
Vietnam has recently announced that it has cut the fare of its UberX service
in HCM City by 15 percent.
The price of the service
is now 7,000 VND per kilometre.
The company attributed
the new price policy to a decline in petrol prices.
The prices applied at
the current time may be changed based on the market, the company said.
In another development,
Uber has announced many programmes to support their drivers in Hanoi and HCM
City.
The programmes include a
10-15 percent reduction of maintenance service for Total, a 10-18 percent
discount if family members take courses at Apollo and Language Link schools,
and an 18-20 percent discount for goods bought from online retailer
Zalora.vn.
Piaggio recalls faulty Zip
motorcycles
More than 1,200 Piaggio
Zip motorcycles assembled in Vietnam were discovered to have faulty
fuel-level sensors that need immediate repair services.
In its latest press
release, Piaggio Vietnam confirmed that the Vietnam Register approved the
recalling of 1,201 Piaggio Zips assembly between June 10, 2015 and October
12, 2015.
The error was discovered
during the periodical checks, registering that some fuel-level sensors of
Piaggio Zip units failed to meet the company's technical standards. This may
cause fuel leakages and fire risk later on if left unattended.
So far there have been
no incidents due to the aforementioned problem, but Piaggio decided to recall
all vehicles suspected of fault and replace the sensors free of charge. The
time schedule for the check and replacement is 30 minutes.
The recall and
replacement campaign started on March 4, 2016.
In 2015, about 630
motorcycles assembled by Piaggio were recalled due to a malfunction of
electric rotors.
Ford reports record
sales in February
Ford’s overall retail
sales jump 65 per cent on year to 1,524 units in February, even when the
month was shortened due to the Tet Holiday.
“Our record February
sales was led by our segment-leading global Ford vehicles – particularly the
Ranger, Transit and EcoSport – which are continuing to widen their appeal
with customers across the country,” said Pham Van Dung, managing director of
Ford Vietnam.
The segment-defining
Ranger led Vietnam’s pickup truck segment for the 12 consecutive months by
delivering February sales that soared 247 per cent to 660 units. Year-to-date
sales of the Ranger have nearly tripled from a year ago to 1,963 units.
The Transit maintained
its leadership of the commercial van segment for the 41 consecutive months
with sales increasing 110 per cent year-over-year to 577 units.
Transit sales
year-to-date have increased 80 per cent to 1,160 units as business owners and
operators across a range of industries continue to appreciate the durability,
versatility and value proposition that this high-quality commercial vehicle
delivers.
The EcoSport compact SUV
continued as one of Ford’s best-selling vehicles with February sales
increasing 2 per cent from a year ago to 222 units, helping drive its
year-to-date sales up nine per cent to 670 units.
Vietnamese’s demand for
cars showed no signs of cooling down as sales numbers broke the record again
in 2015. According to the year-end report of Vietnam Automobile
Manufacturers’ Association, the total industry sales were 244,914 units in
2015, compared to 2014’s 157,810. The growth rate is also the highest ever –
55 per cent, continuing on the trend of accelerating growth of the previous
years.
Finland helps
develop smart power grid in Viet Nam
The Central Power
Corporation and Finland's ABB Oy Company launched mini Supervisory Control
and Data Acquisition (SCADA) system projects in the central and Central
Highlands regions with the aim to develop a smart power grid there.
The introduction of the
mini SCADA system in Tam Ky city of central Quang Nam province and Pleiku
city of the Central Highlands province of Gia Lai is vital to minimise system
faults, reduce the risk of accidents and improve the effectiveness of power
supply. - Illustrative Image/Photo pasco.com.vn
The introduction of the
mini SCADA system in Tam Ky city of central Quang Nam province and Pleiku
city of the Central Highlands province of Gia Lai is vital to minimise system
faults, reduce the risk of accidents and improve the effectiveness of power
supply.
Investment for the two
projects totaled around 4.5 million USD.
Deputy Minister of Trade
and Industry Hoang Quoc Vuong said that since 2006, with a preferential
credit worth 10.5 million EUR (11.5 million USD) from Finland, the Central
Power Corporation has built the mini SCADA system in four cities in the
central and Central Highlands regions, which have produced positive results.
He expressed his hope
that in the time to come, the electricity sector will continue receiving
official development assistance (ODA) and preferential credit from the
Finnish Government to invest in modernising the national grid in line with a
development roadmap of Viet Nam's power system.
According to Finnish
Minister for Foreign Trade and Development Lenita Toivakka, the mini SCADA
projects in Tam Ky and Pleiku cities will use Finland's technologies to
increase the efficiency and reliability of power supply systems.
A more frequent and
stable power supply will help step up economic growth and raise the quality
of locals' living conditions, she added.
Finland has so far
provided assistance for approximately 20 projects with a total investment of
57 million EUR in health, environment, clean water and energy in Viet Nam.
Korean investor
pours $171 million in Can Tho
On March 7, the Can Tho
Export Processing and Industrial Zones Management Authority licensed South
Korea’s Taekwang Industrial to implement a $171 million
shoe-manufacturing factory in 2B Hung Phu industrial park in Cai Rang
district in the Mekong Delta city of Can Tho.
The factory covers an
area of 62 hectares, 52 hectares of which is to hold the production area,
while the remaining 10 hectares is set aside as a service and commercial area
and warehouse for lease.
The investor is
completing the necessary procedures to implement the project and expects to
carry out the land clearance in the next three months.
The factory’s
construction is divided into three phases. The first phase’s construction is
expected to kick off in 2016 and last until 2019, with the second and third
phases to be finished by 2022 and 2025, respectively. The factory constructed
during the first phase will start operation in the first quarter of 2017,
while the second phase will be inaugurated in 2020 and the third phase in
2023.
Once the factory comes
into operation, it will have a total capacity of 100 million of products per
year and create 30,000 jobs.
“Taekwang Industrial’s
shoe-manufacturing factory has been the largest foreign investment project in
Can Tho since 2008. It plays an import role in dealing with Can Tho’s
employment issues,” said Le Manh Tung, deputy director of the Can Tho
Department of Planning and Investment.
“The city will grant
investment certificates for numerous foreign invested projects in the
upcoming time, one of which will be Korean LS Mtron Company’s $20 million
agricultural machine production facility. Besides, the city is considering
documents from Singapore International Pegasus University, with the total
investment of approximately $15 million, and a Singaporean life skills
training school,” Tung added.
Furthermore, numerous
foreign investors are surveying the city’s investment environment to explore
investment opportunities in the hotels and resorts, energy, cosmetics
production, garment and textile, garbage treatment, and hospitality
industries.
According to the Can Tho
Department of Planning and Investment’s statistics, as of February 20, 2016,
Can Tho attracted 68 foreign invested projects with the total registered
capital of $756.6 million. In 2015 alone, the city granted investment
certificates for seven projects worth a total sum of $19.1 million.
Thai energy
giants hope to plug into national power grid
Two Thai firms, Ratch
Co., Ltd and Country Group Holdings, are seeking investment opportunities to
fill gaps in power projects in Vietnam.
Ratch Co., Ltd (Ratch)
revealed investment plans for Vietnam’s Haiphong 3 thermal power project in
last week’s meeting with the Ministry of Industry and Trade (MoIT).
Located in the northern
port of Haiphong, Haiphong 3 thermal power is backed by Vietnam’s state-run
mining group Vinacomin, the country’s third largest power investor. The plant
has a total capacity of 600 megawatts and is expected to make a significant
contribution to the electricity supply for the northern provinces.
MoIT Deputy Minister
Hoang Quoc Vuong commented that Ratch should discuss investments directly
with Vinacomin, as well as suggesting that the company choose other projects
in Vietnam’s power development master plan for the 2011-2020 period, with a
vision to 2030, such as joining with Thailand’s EGATi to invest in the
proposed Quang Tri thermal power station in the central province.
After receiving
government approval in August 2013, a memorandum of understanding for the
1,200MW coal-fired power plant was drawn up, classifying the $2.26 billion
Quang Tri energy project as a build-operate-transfer (BOT) venture which is
expected to come online in 2021. The proposal’s initial construction,
currently slated for 2017, will depend heavily on the upcoming negotiation
process.
Deputy director of the
Quang Tri Department of Industry and Trade Ho Hiep Nghia told VIR that the
Quang Tri thermal power project had completed its pre-feasibility study,
after which it could begin its BOT contract negotiations. This next step is a
tricky process that often causes headaches for energy projects, resulting in
construction delays.
Vuong also suggested
that Ratch could take part in the government-directed equitisation of
state-run Electricity of Vietnam’s Power Generation Corporation (Genco) and
its subsidiaries (Genco 1, Genco 2, and Genco 3). The three Gencos
began operations in 2013 and are not on the list of corporations in which the
state is required to hold a controlling stake.
In the same week,
Thailand’s Country Group Holdings, which provides securities brokerage,
trading, and underwriting as well as investment advice, showed interest in
the renewable energy sector in Vietnam.
Vuong said that in
recent years the Vietnamese government has been calling for investment into
renewable energy projects after realising the limited potential of
traditional fossil fuel power sources, such as coal and crude oil. Severe
nationwide electricity shortages have been harmful for the nation.
According to Vietnam’s
power development master plan for the 2011-2020 period, with a vision to
2030, Vietnam intends to raise the proportion of renewable energy to 6 per
cent of the total power supply by 2030, up from 3.5 per cent in 2010.
Tribunal to set
right disputes
An efficient mechanism
to resolve future disagreements within the Vietnam-EU Free Trade Agreement is
expected to ensure fairness for both parties.
Bruno Angelet,
Ambassador and Head of the EU Delegation to Vietnam, said that regarding the
settlement of investor-state disputes, a unique feature of the Vietnam-EU
Free Trade Agreement (EVFTA) was the agreement to set up an investment
tribunal system.
“Vietnam is our first
trade partner to endorse this innovative mechanism proposed by the EU to its
partners. It will considerably increase Vietnam’s attractiveness for European
investment,” Angelet told EuroCham’s Whitebook launching ceremony last week.
According to the EVFTA’s
Chapter 13 on dispute settlement, the deal creates a framework to resolve any
future disagreements that may occur between the EU and Vietnam about the
interpretation and implementation of most aspects of the agreement.
The system is intended
as a last resort should the parties fail to find a solution by other means.
Should parties fail to reach an agreement through formal consultation, they
can request the establishment of a panel, made up of independent legal
experts. As an alternative to a formal settlement mechanism for disputes, the
EU and Vietnam also set rules that will allow for mediation to tackle
measures that adversely affect bilateral trade and investment.
According to EuroCham in
Vietnam, with such an investment tribunal system stipulated in the EVFTA,
investors may have their disputes resolved more conveniently and impartially.
In past years, when a
dispute happened, investors were often reluctant to settle the issue in
Vietnamese courts because they felt uncertain about the independence of the
judges. In cases where the value of the contract was substantial, they would
choose instead to resolve it by international arbitration. Although
international arbitration is often costly and time consuming, an international
arbitral award is generally enforceable in most jurisdictions around the
world under the 1958 New York Convention on the Recognition and Enforcement
of Foreign Arbitral Awards.
According to the
People’s Supreme Court, from January 2005-June 2014 the number of
applications for the recognition and enforcement of international arbitral
awards was 52 in Hanoi and 52 in Ho Chi Minh City, as well as a handful in
other localities.
For example, in July
2014 the US’ South Fork Development Company tried to sue the Vietnamese
government for $3.7 billion. However, the International Arbitral Tribunal
ruled in favour of the Vietnamese government.
In 2004, South Fork was
licensed to develop a 600-hectare property in the south-central province of
Binh Thuan, which included a five-star luxury resort, golf courses, luxury
apartments, and entertainment facilities.
In December 2009, the
provincial People’s Committee gave 333 hectares to South Fork to develop the
project. However, in 2010 the committee revoked the investment certificate
due to long construction delays, but South Fork took the committee to the
International Arbitration Tribunal, demanding $3.7 billion in compensation
for delays in releasing land to the investor.
South Fork blamed the
committee for having allowed the locally-invested Duong Lam Company to
exploit titanium on the project’s site without its approval, causing delays
in project construction. The committee, however, argued that South Fork had
to be responsible for the delay as it had previously signed an agreement with
Duong Lam for the exploitation.
In another case, in June
2012, Swiss-based Louis Dreyfus Commodities Suite SA asked Vietnam’s Ministry
of Justice and Hanoi’s People’s Court to recognise and enforce the
International Cotton Association arbitral tribunal’s ruling against
locally-owned Dong Phat Joint Stock Company.
In October 2011, the
tribunal tried a dispute in sales contracts involving the two companies. It
finally required Dong Phat to return over $748,000 plus interest to the Swiss
company.
Self Wing gets
investment licence in Da Nang
The central city's
planning and investment department granted an investment licence to the Self
Wing Viet Nam Company in the business start-up education sector yesterday.
Viet Nam is the first
country where the company has set up its personal education system in Ha Noi,
HCM City and Da Nang.
As per the plan, the
Self Wing International College will open in the central city next July to
support an anticipated surge in Japanese investment into Viet Nam and Da Nang
City in the coming years.
According to the city's
investment promotion centre, Da Nang has drawn 390 foreign direct investment
(FDI) projects with a total capital of US$3.6 billion, of which nearly 100
projects, worth $390 million, are from Japan.
Last year, the city's
investment promotion centre also launched its Japanese Desk Da Nang team,
which will be available every Wednesday to help Japanese investors with
information about administrative procedures, investment licences, priority
policies and other adjustments.
The city plans to build
a 134ha industrial park for medium and small-sized businesses from Japan.
FPT Software has sent
101 information technology (IT) trainees from Da Nang, Ha Noi and HCM City to
participate in a nine-month training programme in Japan.
The training is being
held as part of the 10,000-Bridge Software Engineer (BrSE) programme.
Ho Chi Minh City spotlighted by
international expos
More than 292 exhibitors
from over 28 countries and territories showcased new products and advanced
technologies at the three-day events Propak Vietnam 2016 and Plastic &
Rubber Vietnam 2016 held last week in Ho Chi Minh City.
Propak Vietnam 2016 is
the leading international promotion event for the growing Vietnamese food,
drink, and pharmaceutical industries, featuring packaging solutions,
confectionery production machinery, food ingredients, and a wide range of
other products.
Meanwhile, the sixth
Plastic & Rubber Vietnam is offering manufacturers a range of high-end
technologies and equipment catering to all factory production demands, and is
being held concurrently with Propak.
"This year’s Propak
Vietnam is the biggest edition since its first launch in 2005, which
indicates the growing demand for product packaging, driven both by exports
and domestic consumption," said Tran Viet Dung, deputy director of
Vietnam Chamber of Commerce and Industry Exhibition Centre (VCCI).
He added that the events
encourage industrialists to develop their businesses and seek new
technologies and innovations, while networking with world-famous companies.
Among the exhibitors, the Italian and German pavilions attract a substantial
number of visitors and buyers, thanks to the advanced machinery and
technologies showcased.
According to Vera
Fritsche, the host of the German Pavilion, there is an increasing need for
modern and attractive packaging solutions and Vietnam‘s demand for plastic
and machinery is growing fast. In 2014, Germany, again, was one of the
country’s most important sales partners in food processing and packaging
machinery, following close behind China.
“Propak Vietnam 2016 and
Plastic & Rubber Vietnam 2016 are the most important platforms for German
companies to present their products and solutions to the Vietnamese
industry,” she stated.
Experts share
experience in maintaining small-scale projects
Vietnamese and Japanese
experts shared experience in the sustainable management of small-scale
technical projects funded by the Japan International Cooperation Agency
(JICA) during a workshop in Hanoi on March 9.
Nakamura Tomoki, a
representative from the Nippon Koei Vietnam Limited Company, said the regular
exchange of information on the progress and outcome of a project as well as
arising problems is essential.
This will help adjust
Japanese projects to suit reality in Vietnamese localities, allowing more
effective implementation, participants said.
Doctor Ngo Tung Duc from
Hue University of Agriculture and Forestry suggested involving local people
in feasibility study for small-scale projects, in order to mobilize local
resources for project implementation.
Projects must also prove
their efficiency to local development before they are expanded, panels said.
JICA has been carrying
out 81small-scale technical projects in various fields in Vietnam since 2002
under the Japan Partnership Programme (JPP).
As part of the Japanese
Government’s official development assistance (ODA) programme, JPP aims to
support socio-economic development for developing countries, including Vietnam.
Dutch businesses
seek opportunities in Binh Duong
A delegation from the
Netherlands went on a fact-finding tour of the southern province of Binh
Duong on March 9 to seek investment opportunities in the locality.
The delegation,
comprising businesses operating in the cheese industry, logistics, and
agricultural imports, was led by Cees Bijl, mayor of Emmen city, and Karel
Loohuis, mayor of Hoovegeen city.
At a working session
with the delegation, Chairman of the provincial People’s Committee Tran Thanh
Liem said that local authorities will create favourable conditions for
foreign investors, aiming to encourage investment in the locality.
Meanwhile, provincial
Party Committee Secretary Tran Van Nam and Cees Bijl appreciated the
implementation of the signed cooperation agreement between Binh Duong and
Emmen in late 2015.
Both sides hope that the
investment cooperation between them will continue to grow in the coming
years, especially in the fields of technology, logistics, hi-tech
agriculture, law, education, and healthcare.
So far, Dutch investors
have poured about 700 million USD into 41 projects in Binh Duong.
The province now has 28
industrial parks, attracting over 2,600 FDI enterprises with total investment
capital of 25 billion USD.
Last year, Binh Duong’s
export turnover reached 21 billion USD, up 17.9 percent against 2014. The
province enjoyed a trade surplus of 3.7 billion USD.
Binh Duong,
Dutch law firms ink cooperation deal
The Netherlands’
Twiceans International Law Firm and the Becamex Law Firm of southern Binh
Duong province on March 9 signed a cooperation agreement on providing legal
services and sharing experience during 2016-2020.
The cooperation is under
a programme to enhance the relationship between Binh Duong and Emmen city,
the Netherlands, following a memorandum of understanding on the establishment
of the two localities’ relations in economics, trade, services, investment
and judicial affairs signed on November 17, 2015.
Accordingly, domestic
legal cases in the Vietnamese province will be addressed by the Becamex Law
Firm, while the Twiceans International Law Firm will take over
foreign-related cases.
Through this agreement
on sharing the lead in cases, the two companies will exchange their legal
understanding.
Also on the day, Emmen
Mayor Cees Bijl and Hoogeveen Mayor Karel Loohuis along with representatives
of Dutch enterprise had a working session with Binh Duong leaders to seek
further investment cooperation opportunities.
Binh Phuoc
builds geographical indications for cashew products
Specialists and relevant
agencies of southern Binh Phuoc province are working to develop geographical
indications (GIs) for local cashew products, ultimately raising the goods’
competitiveness in foreign markets.
The work is being
carried out under a project on supporting GI development in Vietnam.
The project, by the
National Office of Intellectual Property, is implemented at a total cost of
over 1.35 million USD, including 1.09 million USD in official development
assistance funded by the French Government. The remaining sum is being
covered by Vietnam.
The project’s
specialists found that although Binh Phuoc’s cashew products are not renowned
in international markets yet, local soil and climate conditions are very
favourable for large-scale cashew cultivation.
Forty-four cashew
processing companies in the province have been recognised as meeting ISO
standards. The quality of local cashew nuts is also much higher than that of
those hailing from other Vietnamese localities.
The specialists said
these are optimal conditions for developing GIs for Binh Phuoc’s cashew
products.
At a meeting on March 9,
representatives of State agencies, businesses and farmers pointed out an
array of problems in building cashew GIs such as how to help companies work
with farmers to create large-scale, stable growing areas to ensure material
supplies; or how to enhance cooperation among cashew processors who always
compete with one another.
Another concern is that
companies might source cashews from other localities to process and label
their products with the Binh Phuoc origin.
Le Thi Anh Tuyet,
Director of the province’s agriculture and fisheries promotion centre,
underlined the role of enterprises for successful GI development. It is necessary
to make firms realise that they have to join hands in building brands, if
they want the local cashew industry to enter global markets.
Binh Phuoc has 134,000
hectares of cashew which yields 190,000 tonnes of nuts annually, with an
average productivity of 1.4 tonnes per hectare.
Hanoi leads in
attracting foreign direct investment
Hanoi attracted the most
foreign direct investment in the first two months of 2016: US$250 million,
13% of Vietnam’s total. The figure is the result of the city’s efforts to simplify
administrative procedures and improve its investment environment.
FDI projects are mainly
in real estate (46%) manufacturing and processing in industrial parks, trade,
and services. An increasing number of Japanese and Korean businesses are
investing in trade and services.
Nguyen Anh Dung of the
municipal Department of Planning and Investment said “Hanoi authorities have
been focusing on administrative reform and improving the investment
environment to facilitate business operations. The results in the first two
months of 2016 follow Hanoi’s previous achievements in investment
attraction.”
Dung said the city
should work hard to maintain its momentum in attracting foreign investment.
The People’s Committee, the Department of Planning and Investment, and other
agencies have begun to streamline administrative procedures for investors.
"We’ve proposed
reducing 10%-30% the time required for administrative procedures and making a
list of projects calling for investment. We are reviewing a number of
investment areas for licensing,” he added.
Hanoi has consistently
been among the localities attracting the most foreign direct investment over
the last 10 years. It ranked 3rd in the first 9 months of 2015 after Bac Ninh
and HCM city.
Dutch investors
seek joint ventures with local entrepreneurs
A delegation of Dutch
investors arrived in southern Binh Duong province on March 9 to explore
investment opportunities in different sectors of the economy, especially in
the agro-processing and hospitality sectors.
The Netherlands Emmen
City Mayor Cees Bijl said the delegation is representing 30 companies across
all sectors including agro-processing, manufacturing, hospitality,
engineering, real estate, as well as the SME sector.
According to Mayor Bijl,
the Dutch investors are seeking business opportunities and partnerships with
local business people.
Chairman Tran Thanh Liem
of the provincial People’s Committee welcomed the delegation saying, he
appreciated the opportunity to explain to the investors the opportunities the
province has to offer.
“Our task is to link
them with local entrepreneurs so that they can share business experiences
and, hopefully, build joint ventures with the local private sector players,”
Liem added.
There are already some
Dutch companies in different sectors of the economy.
The Netherlands is one
of the leading exporters of agricultural produce.
On the same day, a
cooperation agreement between two international law firms – the Netherlands
Twiceans Internationnal Law Firm and Vietnam Becamex Law Firm – was
consummated.
HCM City
supports new business park
Chairman of the
municipal People’s Committee Nguyen Thanh Phong on March 7 met with Miguel Ko
Kai Kwun, CEO of Ascendas-Singbridge group to discuss the “One HubSaigon
complex” project in Ho Chi Minh City.
Chairman of the HCM
City's People's Committee Nguyen Thanh Phong (6th from left) poses in a photo
with representatives from Ascendas-Singbridge group (Photo: Sggp)
The OneHub Saigon
complex costing US$130 million will be located at the Saigon Hi-Tech Park in
the heart of District 9 and Thu Duc District.
The project is a joint
venture between Ascendas Land Vietnam of Singapore and the UK’s Saigon Bund
company. It received investment license in September 2014.
The city’s leader highly
appreciated construction of the OneHub Saigon complex invested by
Ascendas-Singbridge group. He hoped that the project will meet the demand for
working, living and studying of people in the city.
The Vietnamese
Government and the city People’s Committee will create safe and attractive
business environment for foreign investors, and help them solve all their
problems, he added.
Ho Chi Minh
City’s authorities hold open dialogue with business community
Authorities of Ho Chi
Minh City held a meeting on March 8 to meet with businesses in the city to
listen to and discuss unresolved issues and proposals.
The meeting was chaired
by Politburo member and Secretary of the Ho Chi Minh City municipal Party
Committee Dinh La Thang, members of the Party Central Committee and Vice
Secretaries of the municipal Party Committee Tat Thanh Cang and Nguyen Thanh
Phong.
At the meeting,
representatives from professional associations and businesses openly stated
shortcomings in relevant policies and contributed valuable ideas for the
city’s development. Most of the ideas focused on policies related to tax,
access to preferential capital, fees and charges, development of the support
industry and human resources in order to meet requirements of international
integration, and administrative reforms and regulations on wages, social and
voluntary insurance.
They also asked for the
early construction of an internationally and regionally-scaled exhibition
centre; support to promote businesses’ brand names, develop retail markets
and consume locally-made products; food security and infrastructural
development.
Several delegates
proposed suggestions to build Ho Chi Minh City into an economic, financial,
commercial, scientific and technological centre in Southeast Asia.
Concluding the
conference, Thang promised the business community that the city’s leaders
would address the suggestions openly and transparently, saying that they
always consider the crucial role of businesses and therefore endeavour to
provide them with adequate attention in order to lift difficulties and create
an open and transparent business environment, in addition to supporting
businesses to access resources and stimulating start-up movements.
Thai startup business,
Getlinks expands investment to Vietnam
Bangkok-based tech
recruitment platform Getlinks has secured US$500,000 seed funding from Cyber
Agent Ventures to expand operation to Vietnam and Singapore.
GetLinks – which counts
Google, Uber, Line and Lazada among its customers in Thailand – sees a huge
potential for tech recruitment offering in Vietnam, which has recorded a
surge in investment inflows into the startup space.
Nguyen Manh Dung, chief
representative of CAV in Vietnam and Thailand said recruiting is one of the
biggest obstacles facing startups. He hoped that Getlinks will help tackle
the problem not only in Southeast Asia but also global market.
DjoannFal, CEO and
founder of GetLinks, said “Asia’s tech industry is entering into its golden
age, startups, corporates and governments want to get into tech. But with
this growth comes massive challenges for startups to build the right team due
to limited talent pool and lack of quality supply channels. We aim to bring
efficiency to this tech hiring market by providing a quality tech talent
pipeline at an affordable price.”
To facilitate its foray
into Vietnam, GetLinks will co-organize the Saigon Tech Startup Fest for
startups at the Independence Palace on March 12, expecting over 3,000 tech
attendees.
Wood processors
weak in capital and market access
A majority of wood
processing enterprises in Vietnam have limited access to capital and markets
as they are categorized as small and ultra-small, according to the Handicraft
and Wood Industry Association of HCMC (HAWA).
HAWA said up to 93% of
local wood processing enterprises are small and ultra-small. Medium
enterprises account for 5.5% of the total and big firms make up the
remainder.
Speaking to the Daily at
the opening of the Vietnam International Furniture and Home Accessories Fair
2016 (VIFA EXPO 2016) on March 8, HAWA vice chairman Huynh Van Hanh said
financial capability and market access are among the weaknesses of Vietnamese
wood processing firms.
The wood processing
industry is expected to ship abroad US$7.6 billion worth of products this
year. According to Hanh, to achieve the target, enterprises will need
assistance to sell products to major markets and upgrade production
technologies.
Phung Quoc Man, director
of Bao Hung Co Ltd, said designs and creativity of Vietnamese enterprises
remain weak. Currently 70% of wood processors in Vietnam rely on outsourcing
contracts from foreign partners and just do what their customers order. A few
businesses are able to develop their own designs and items.
“This makes enterprises
unable to compete with foreign companies. If domestic enterprises can focus
more on designs, more value could be added to their products,” Man said.
Regarding the
difficulties faced by enterprises in the industry, Man pointed out the slow
refunding of value-added tax (VAT) had cut into their working capital.
However, Hanh is
optimistic that the wood processing industry will grow strongly this
year as there have been more orders because of the country’s signing of new
free trade agreements and its cheap labor.
Wood processing
enterprises have prepared themselves well to meet strict requirements of the
U.S. and EU markets for product origin, he added.
Vietnam earned US$6.9
billion from exporting wooden products last year, up 10.7% against the
previous year. Vietnam is currently one of the world’s six biggest wooden
goods exporters.
Lasting until this
Friday, VIFA EXPO 2016 at the Saigon Exhibition and Convention Center
features 1,234 booths (a 36% rise against 2014) manned by 253 exhibitors. Of
the total number, Vietnamese and foreign-invested enterprises make up 77% and
58 firms from 12 countries and territories account for the rest.
At the opening ceremony,
HAWA gave prizes to top eight entries in a design contest for indoor and
outdoor furniture entitled Hoa Mai (apricot). Huynh Tan Anh Tuan brought home
first prize for Workspace Desk.
The 13th contest drew
191 contestants with 238 entries. Member enterprises of HAWA supported
contestants to create 20 works and those outstanding designs are on show at
VIFA EXPO 2016.
The prize-winning
designs of last year’s contest will be displayed at the International
Furniture Fair Singapore taking place in the island state from March 10 to
13.
Land use fee
weighs on property firms
The HCMC Real Estate
Association (HoREA) has said property firms are complaining about the current
land use fee calculation method which makes life hard for them.
In a document recently
sent to the HCMC delegation of National Assembly (NA) deputies, the
association proposed the Ministry of Natural Resources and Environment make
the land use fee calculation method more transparent.
HoREA proposed replacing
the current land use fee with a land use tax making up a fixed percentage of
land value. This will make the tax transparent and easy to calculate, and
help eliminate the ask-and-give mechanism in the property sector.
Explaining why the
current land use fee is a burden for property investors, HoREA chairman Le
Hoang Chau said they have to pay a huge amount of money for land compensation
in line with the market price but they do not have this money deducted
correspondingly when they pay the land use fee for local government.
Chau took a big project
under construction in District 7 as an example. The average land compensation
is VND6 million per square meter but the investor got a deduction of only
VND1.2 million per square meter when it made the land use fee payment for the
city.
In addition, according
to Chau, investors do not know exactly how much they would have to pay land
use fee for the city government as it depends on each lot of land.
“The investor will only
know the exact payable amount when a leader of the city signs a decision
approving the project,” he said.
The association proposed
permitting owners of resettlement housing to sell and transfer their units
and those eligible for buying resettlement homes to transfer their home buy
rights.
Nevertheless, as argued
by the association based on the civil code and in line with the 2014 housing
law, owners of resettlement homes have the right to make decisions relating
to their properties and the right to buy resettlement homes is also their
property ownership right.
According to Chau, the
property market has recovered since late 2013. In 2015 alone, VND140 trillion
in credit flowed into HCMC’s property market, making up 12.3% of total
outstanding loans in the city. Additionally, around US$1.3 billion of US$5.5
billion in overseas remittances sent to HCMC last year found its way to the
property sector.
However, the market has
seen signs of the upscale housing segment being overheated with prices of
high-end homes surging 5-15%.
Of around 1,400 property
projects approved in HCMC, 190 projects have been recalled or had their
licenses invalidated. Of some 1,220 valid projects, 405 projects have not got
off the ground and 97 projects have been put on hold after a period of
construction.
The association forecast
the city’s property market will grow further this year and that there will be
more budget apartments, commercial houses with reasonable prices, industrial
properties, offices for lease and serviced apartments.
MSLGROUP
acquires Venus Communications in Vietnam
MSLGROUP, a member of
Publicis Groupe, has announced the acquisition of Venus Communications Ltd,
one of the leading PR and communications agencies in Vietnam.
In Vietnam, MSLGROUP is
a part of Publicis One, a global communications enterprise that brings
together Publicis Groupe agency brands’ capabilities and expertise under one
roof.
Publicis One said in a
statement that Venus and MSLGROUP have collaborated successfully in numerous
international client assignments across Asia and globally. Venus
Communications has more than 40 employees at its offices in HCMC and Hanoi.
Venus Communications is
strong in public relations and activation. Its clients include MasterCard,
FedEx, Rolls Royce, BAT, Mead Johnson, and Sanofi.
After the acquisition,
Venus Communications will operate under the brand name of MSLGROUP with Giang
Quang Tuan remaining as managing director.
Glenn Osaki, president
of MSLGROUP in Asia, said in the statement that Venus Communications
officially becoming a part of MSLGROUP is a natural step after having been a
trusted partner for years.
“It strengthens
MSLGROUP’s position to lead the ongoing transformation of the public
relations industry in Asia,” Osaki said.
Meanwhile Tuan said
joining MSLGROUP will provide global and regional resources for the company’s
clients and give its employees opportunities for international careers and
access to world leading talent programs.
MSLGROUP is Publicis
Groupe’s strategic communications and engagement group, advisors in all
aspects of communication strategy. With more than 3,000 people working at
nearly 100 offices worldwide, the group is the largest PR network in Europe.
Vinamilk asked
to buy fresh milk from Evergrowth Cooperative
Deputy Minister of
Agriculture and Rural Development Tran Thanh Nam has requested Vietnam Dairy
Products Joint Stock Co. (Vinamilk) to purchase fresh cow milk from
Evergrowth Cooperative in Soc Trang Province.
Nam made the request in
a written document recently sent to the general director of Vinamilk after
Evergrowth Cooperative petitioned the Ministry of Agriculture and Rural
Development to ask Vinamilk to sign a contract to buy fresh milk from the
cooperative. Besides, the government of Soc Trang Province is calling for
Vinamilk to open more milk purchasing points to help dairy farmers in the
Mekong Delta province.
Evergrowth Cooperative
used to sell fresh milk to Vinamilk before shifting to another dairy
processor in 2012.
Luong Van Quyet,
director of Soc Trang Province’s Department of Agriculture and Rural
Development, said the cooperative’s current daily sales volume is 24 tons but
its daily output is 35 tons. The cooperative is ready to sell the surplus at
reduced prices, Quyet said.
Vinamilk has clinched a
memorandum of understanding with Soc Trang to assist the province in
techniques and models for cow farming, food supply, and disease control.
Evergrowth Cooperative
members have risen to 2,700 from 171 in 2004 and their dairy cows number
7,000, up from 477 around 16 years ago.
Over the years, the
cooperative has helped many farmers in the province get out of poverty. In 2014,
the province launched a project worth VND286 billion (US$13 million) to
increase the dairy cow herd to 17,800 head with total fresh milk output of
23,000 tons per year in 2020.
However, Quyet said the
dairy cow herd could only be expanded when the province secured contracts to
sell the entire fresh milk output to dairy firms.
Vietnam mobile
phones exempt from Turkey’s safeguard duty
Turkey has decided not
to impose a safeguard tariff on mobile phones imported from Vietnam after
calling off an investigation into the product, said the Vietnam Competition
Authority under the Ministry of Industry and Trade.
In July last year,
Turkish Minister of Economy Nihat Zeybekci announced the nation might slap
safeguard tariffs of 10-15% on imported cell phones. In early December 2014,
Turkey opened a safeguard investigation into Vietnamese-made mobile phones
following a lawsuit filed by local firm Vestel Elektronik Sanayi Ve Ticaret
A.Ş.
Turkish investigators
worked with relevant parties, including Vietnam’s Trade Office in Turkey and
a couple of Vietnamese enterprises, in the foreign country in March last
year.
South Korea’s Samsung
Electronics, which may be affected by the investigation, sent a document to
oppose the plaintiff’s claim. Samsung said in a joint statement of its
subsidiaries in Vietnam, China and India that the enterprise holds a big
share of Turkish’s mobile phone market and makes investment in the country as
well.
According to the Vietnam
Competition Authority, Vietnam exported US$643 million worth of cell phones
to Turkey in the January-November period of 2014. The figure was US$418
million in all of 2013.
Vietnam is the second
biggest exporter of mobile phones to Turkey, accounting for 23.4% of Turkey’s
total imports, while China ranked first with 67.5%, according to Turkey’s
document sent to the World Trade Organization (WTO) in December 2014.
Vietnam’s Trade Office
in Turkey said due to a huge trade deficit, Turkey usually uses trade defense
measures to restrict imports. Vietnam has faced a number of anti-dumping,
safeguard and avoidance of anti-dumping investigations conducted by Turkey.
The foreign country has
investigated the avoidance of anti-dumping taxes on Vietnamese plywood,
granite and cold rolled stainless steel welded tubes, and launched
anti-dumping probes into Vietnam’s polyester fibers, fiber, air-conditioners
and auto tires, besides safeguard investigations into mobile phones, woven
fabric, clothing and shoes produced in the ASEAN nation.
Among them, the
safeguard investigation into Vietnamese-made mobile phones was a rare case as
Vietnam usually had to deal with trade defense investigations into
labor-intensive items.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
|
Thứ Sáu, 11 tháng 3, 2016
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