BUSINESS IN BRIEF 2/8
HCM City needs specific plans to
maintain economic growth
Ho Chi Minh City needs to carry out specific plans to
maintain its economic growth in the last four months of 2016, Chairman of the
municipal People’s Committee Nguyen Thanh Phong said at a working session
with local officials on August 1.
The city will focus on implementing the Government’s
Resolution No.19 on improving business environment and increasing national
competitiveness in 2016-2017 and with orientation towards 2020, and
Resolution No.35 on supporting and developing businesses until 2020.
Particularly, the city moves to simplify administrative
procedures and enhance the application of information technology in the field
to make it easier for enterprises to do business.
Apart from increasing market management and preventing
effectively trade frauds, the city will actively promote the campaign
“Vietnamese people prioritise Vietnamese goods” and pay more attention to the
retail market which is dominated by foreign partners.
In the long run, HCM City will concentrate to improving
the municipal trade development scheme and upgrading the information system
for farm produce in 2016-2020, while establishing a chemicals and aromatic
spices business centre.
The city plans to speed up the implementation of urgent
infrastructure projects in 2016, including the development of water supply
network.
According to Director of the municipal Department of
Planning and Investment Su Ngoc Anh, the total retail sales and services
revenue reached nearly 407 trillion VND (18.31 billion USD) in the January-July,
a year-on-year increase of 11.4 percent.
The export turnover was estimated at 17.6 billion USD
in the period, a yearly rise of 1.8 percent. Meanwhile, the import turnover
hit 20.7 billion USD, up 9.8 percent.
The industrial production index rose by 3.1 percent.
The city attracted 19 public-private partnership (PPP)
projects with a total investment of over 34.8 trillion VND (1.56 billion USD)
in the first seven months of 2016.
Quang Nam asked to boost sea-based
economy
Deputy Prime Minister Truong Hoa Binh has urged central
Quang Nam province to pay heed to promoting sea-based economy, focusing on
providing credit support and vocational training for locals, increasing the
number of fishing boats and considering possibilities of shipbuilding
industry development.
In a recent working session with leaders of the
locality, the deputy PM asked the local authorities to accelerate
agricultural restructuring and new urban development, intensify application
of sci-technology and expand production and business models that bringing
high efficiency.
He also underlined the need for the locality to make a
study of aquaculture in hydroelectric reservoirs, promote labour export,
natural disaster and forest fire prevention, research and rescue, disease
prevention and environmental protection.
Local authorities were requested to hasten the
implementation and disbursement of investment projects, giving priority to
key projects.
Administrative reform should be stepped up towards
improving the provincial competitive index and the business climate, the
Deputy PM said, adding that specific ways must be devised to foster start-up
activities and lure more strategic investors to the locality.
He asked for sustainable development of hi-tech and
support industries, and effective exploitation of popular tourism sites such
as Hoi An Ancient Town, Cu Lao Cham Island, My Son Holy Land along with
traditional trade villages and beaches in the locality.
Attentions should be also paid to issues concerning
socio-culture development, education, health care, poverty reduction, social
welfare, and policy for contributors to the national revolution, especially
those in disadvantaged and mountainous areas.
Quang Nam enjoyed a stable GDP growth in the first six
months of this year, hitting 11.7 percent. It posted year-on-year increases
of 6 percent in export turnover, 12.4 percent in industrial production, and
nearly 13 percent of total retail sales of consumer goods and services, in
the period. The number of tourists to the province was up 23 percent over the
same period last year.
Local authorities have taken many solutions to
agricultural development and new-style area building, job generation and
high-quality human resources training.
The province has 54 communes that have completed all 19
criteria of new rural areas . The rate of poor households under
multidimensional poverty standards decreased to 12.9 percent.
However, Quang Nam is facing difficulties in
rationalising labour structure, building new-style areas in mountainous
areas, managing of natural recourses and minerals and preventing drug-related
crimes.
State Treasury offloads 4.072
trillion VND worth of G-bond
The State Treasury has mobilised 4.072 trillion VND
(182.62 million USD) through auction of government bonds, according to G-bond
auction organiser Hanoi Stock Exchange (HNX).
The bonds included in an offered package of 6 trillion
VND of G-bonds, including five-year bonds worth 3 trillion VND worth,
seven-year bonds worth 1 trillionVND, 10-year bonds worth 1 trillion VND and
30-year term bonds amounting to 1 trillion VND.
Through the auction, 2.76 trillion VND of five-year
bonds were offloaded at the coupon rate of 6.11 percent per annum, 0.01
percent higher than that in the previous auction.
Meanwhile, 400 billion VND of seven-year term bonds
were sold at the coupon rate of 6.62 percent per annum, together with 912
billion VND of 30-year bonds at the rate of 8.00 percent per annum.
No 10-year term bonds were sold, said the HNX.
So far this year, the State Treasury has mobilised over
206.87 trillion VND from G-bond auctions at HNX.
Vietnamese firm looks to expand
canned coconut water business
An ambitious Vietnamese company is developing a new
coconut product with an eye on the international market.
There was a time when thirty liters of coconut water
sold for VND5,000 (23 US cents), when it was seen as an inferior by-product
from the processing of coconut meat, supposedly the most valuable part of a
coconut.
But times are changing, at least according to Betrimex,
a company based in the Mekong Delta province of Ben Tre, which is currently
producing canned coconut water under the brand name Cocoxim.
The company has just invested US$20 million in building
a factory for the production of its new product, and it is confident that
canned coconut water will find success on the domestic market.
Despite the fact that coconuts can easily be found
along the side of the road, canned coconut water is more convenient, as cans
are easier to carry and require less effort to open compared to unwieldy
coconuts.
Betrimex’s true ambition, however, is to conquer
overseas markets, such as the US, Canada, and the EU.
The demand for canned coconut water is rising globally.
World consumption in 2015 was double that of 2012, with canned coconut water
now regarded as a premium drink in supermarkets.
In the US, sports drinks usually fetch around US$1.80 a
liter, while canned coconut water is oftentimes priced at US$5 a liter.
Nguyen Minh Hoang, Betrimex’s vice president, believes
that Vietnamese coconuts have a competitive edge over global competitors.
Coconut meat accounts for 35% of a Vietnamese coconut,
while the world average is 30%.
Coconut water takes up 27% of a Vietnamese coconut,
whereas the global average is 22%.
In addition, Vietnamese coconuts are considered sweeter
than others.
With this in mind, Betrimex believes that it can
succeed both domestically and internationally.
It remains to be seen whether the ambitious company
will be able to achieve its goals.
Foreign firms keen on old building
renovation projects in HCM City
Numerous foreign firms are interested in projects to
renovate or replace old buildings in Ho Chi Minh City.
President of the Australian Property Sakkara Group Neil
Wilson made the statement at a meeting with Secretary of the municipal Party
Committee Dinh La Thang on August 1.
According to Wilson, firms which have been operating in
Vietnam and the city are seeking investment opportunities in high building
and transportation projects.
At the meeting with foreign investors in estate and
finance including Sakkara, Dragon Capital of the UK and GIC of Singapore,
Secretary Thang welcomed businesses to seek investment opportunities in the
city.
He said HCM City has continuously created optimal
conditions for investors.
The city is calling for investments in numerous
projects in the fields of transportation, flood fighting, environment,
construction and old building renovation, Thang said.
He suggested businesses with strength in finance and estate
enter joint ventures to participate in the projects.
New firms surge in first 7 months
Some 64,000 enterprises were created in the first seven
months of this year with a total registered capital of nearly VNĐ497 trillion
(US$22.36 billion), according to statistics from the General Statistics
Office.
Newly-established firms rose by 23.3 per cent in number
and 54.7 per cent in capital value year-on-year. The adjusted capital in the
reviewed period posted VNĐ894.9 trillion, raising the total registered and
adjusted capital to 1,400 trillion.
More than 16,700 enterprises, which suspended their
activities due to difficulties, have resumed operations, up 67.5 per cent
from the same period last year. In July, the number of new firms exceeded
9,600 with a total registered capital of VNĐ69.2 trillion, a slight decrease
from June. More than 99,200 jobs were also created by the newly-established
enterprises. The number of businesses resuming operations exceeded 1,800 in
July, while nearly 6,000 halted their operation and more than 900 firms
completed procedures for dissolution or termination.
Director of the Central Institute for Economics
Management Nguyễn Đình Cung said the average capital of a business in the
period has still been small at VNĐ7.7 billion each. Of which, the average
capital of private firm was VNĐ1.5 billion while that of joint stock company
was VNĐ1.3 billion.
“The improvement of businesses’ competitiveness would
not be easy as most of Vietnamese firms are small-and-medium sized
enterprises,” Cung said, adding that small scale would make companies faced
with difficulties of backward technologies, limited skilled labourers and a
shortage of long-term business strategies.
He said businesses with average capital of less than
VNĐ10 billion could be vulnerable in international integration.
Sectors and localities should have strong measures to
improve the business environment, aiding firms’ difficulties as well as
improving their competitiveness.
In addition, authorities should apply risk management
and simplifying administrative procedures to reduce paperwork and shorten
time for businesses in the import-export sector, he said.
The director added that the Government should revise
and build a roadmap to reduce inequality between State-owned and private
firms.
Đồng Nai farmers grow rambutan
Farmers in the southern province of Đồng Nai are
growing Thai rambutan because of its high profit, according to the Đồng Nai
Agriculture and Rural Development Department.
The department said Đồng Nai has 11,000ha of rambutan
trees, making it the largest rambutan producer in Việt Nam. The total area
for growing rambutan trees has not increased over the years, but the
structure of the area has changed. The area for growing Thai rambutan has
increased, while the area for Vietnamese rambutan has been reduced.
Lê Thị Lan, a farmer in Bình Lộc Commune, Đồng Nai
Province, said her family grew 5ha of Vietnamese rambutan before 2014, but
now she has cut down local rambutan trees on 3ha to grow Thai rambutan.
She said her family might grow Thai rambutan trees on
the remaining 2ha in the future if the selling price of Thai rambutan remains
high.
Currently, the wholesale price of Thai rambutan stands
at VNĐ18,000 (US$0.8) per kilo, while the price of Vietnamese rambutan is
between VNĐ5,000 and VNĐ15,000 per kilo depending on the kind of rambutan,
according to Tin tức newspaper.
The demand for Thai rambutan has also increased
recently, said Phùng Thanh Tâm, director of the Bình Lộc Agricultural,
Service and Trade Cooperative in Bình Lộc Commune.
However, Thai rambutan prices have not been as stable
as local rambutan prices. That is a great risk for local farmers, he said. In
addition, the higher supply of Thai rambutan would drive down the selling
price for the fruit.
The Đồng Nai Agriculture and Rural Development
Department warned that farmers should be careful when switching from local
rambutan trees to Thai rambutan. Local rambutan profits might not be as high
as Thai rambutan profits, but Vietnamese rambutan trees have been developed
in Đồng Nai for many years, and land and natural conditions are suitable for
growing Vietnamese rambutan trees, the department said.
The department also echoed warnings about prices going
down once more farmers switch to Thai rambutan crops.
In a related matter, Long Khánh rambutan received a geographical
indication certificate in June, which would create more chances for local
rambutan to enter new markets, the department said.
Vinh Phuc seeks partnerships with
Czech Republic
Vinh Phuc authorities have assured enterprises from the
Czech Republic of favourable conditions for them.
Chairman of the Vinh Phuc provincial People’s Committee
Nguyen Van Tri was speaking at a recent workshop on investment opportunities
in Vinh Phuc held in Prague, the Czech Republic on August 1.
He highlighted the local favourable business
environment, saying that it offers comprehensive infrastructure, skilled
worker training, simplified administrative procedures and low-cost land rent
fee to foreign investors.
Vice President the Economic Chamber of the Czech
Republic Borivoj Minar said a delegation of Czech firms plans to visit Vinh
Phuc to expand cooperation.
Vice Chairman of the provincial People’s Committee
Nguyen Kim Khai said the province ranked fourth in the provincial
competitiveness index in Vietnam. It has lured 221 foreign investors with the
total investment capital of 3.5 billion USD.
He expressed his hope that Czech firms will invest in
mechanical manufacturing and supporting industry.
Meanwhile, Vietnamese Ambassador to the Czech Republic
Truong Manh Son updated the development of friendship and economic
cooperation between the two nations, while underlining Vietnam’s investment
potential.
Earlier on July 31, the Vinh Phuc delegation, led by
Tri, had a working with representatives from the Embassy of Vietnam, the
Vietnamese People Association and Vietnam Business Association in the Czech
Republic.
The provincial leader called on Vietnamese expats to
invest more in the locality.
SeABank, BRG Group and Michinoku
Bank sign agreement
Viet Nam's Southeast Asia Commercial Joint Stock Bank
(SeABank) signed a trade co-operation agreement with Japan's BRG Group and
Michinoku Bank on July 29.
Under the agreement, BRG Group and SeABank will
co-operate with Michinoku Bank in exchanging information about society,
culture, business and investment to support businesses involved in the export
and import of agricultural and forest products and seafood.
SeABank will supply banking services as per customers'
demand, such as cross-selling.
They will introduce reputed customers who expect to do
business or invest in the other country.
BIDV's total assets' worth touches
$41bn
The Bank for Investment and Development of Vietnam
(BIDV) retained its position as the country's largest commercial bank in
terms of assets, the bank's latest accumulated report said.
According to the report, BIDV's total assets as of the
end of June rose 9.2 per cent against January to reach more than VND930
trillion (US$41.51 billion).
The bank's credit and investment also increased 8.3 per
cent to reach VND876 trillion, while its capital mobilisation rose 13 per
cent to touch VND868 trillion, helping the bank claim a market share of 12.8
per cent of the entire banking system's total capital mobilisation.
Thanks to the credit growth, BIDV's accumulated profits
as of the end of June reached VND3.311 trillion, up 6.2 per cent
year-on-year.
However, the bank's non-performing loans increased
sharply by 31 per cent against the end of last year, or by more than VND3
trillion to reach VND13.183 trillion. Of these debts, potentially
irrecoverable debts and doubtful debts rose from VND5.190 trillion and
VND887.76 billion to VND6.343 trillion and VND2.326 trillion, respectively.
The bank, however, controlled its total bad debts under
two per cent as required by the central bank.
Tien Sa Port eyes world-class status
The Da Nang Port JSC started the second phase of a
project to expand Tien Sa Port on July 31, to make it a modern container port
in the central region.
When it is completed at an estimated cost of nearly 1.1
trillion VND (49.3 million USD) by June 2018, Tien Sa Port is expected to be
able to handle 70,000 DWT vessels and 10 million tonnes of cargo a year.
The expansion project will cover an area of 60,000sq.m,
raising the port’s total area to about 31ha. In addition, two new piers,
measuring 310m and 210m in length, will be constructed for docking container
ships. It will be equipped with two cranes and synchronous infrastructure to
ensure effective use of the port.
The project has drawn the attention of the people after
the port’s management board decided not to use Official Development
Assistance (ODA) funds for the port and mobilised capital themselves.
The smooth and effective operation of the port’s first
phase has made the authorities confident of arranging investment themselves
for the upgrade project. On the other hand, the rising value of the Japanese
yen has caused difficulties for the payment of the first phase’s loan and its
interest rate. In addition, the large scale of the project, with several
categories, could prolong its implementation if the port uses the ODA loan.
These are the reasons why mobilisation of capital by the company can reduce
the total investment and debt payment pressure in the long term.
Nguyen Huu Sia, the company’s general director, said
the company had raised 36 percent of the total investment themselves,
borrowing 31 percent and mobilising 33 percent from shareholders, instead of
using the ODA to minimise risks and stay active in financial plans. In the financial
mobilisation process, DA Nang Port has received commitments and supports from
Vietnam National Shipping Lines (Vinalines), investment funds and big banks
for the project’s investment.
Sia said with an increasing amount of goods being
handled at the port, the payback period was expected to be 10 years, instead
of 14-15 years in other similar projects.
He added the upgrade project is extremely vital as the
increasing quantity of goods going through the port has reached an overload
level.
Statistics from the company showed that in the first
half of the year, the port handled 146,000 TEUs (20-foot equivalent unit),
posting a 19 percent year-on-year increase. Notably, the number of containers
handled at the port reached record levels. In just May and June, the loading
capacity reached the highest level of 29,431 TEUs.
Huynh Duc Tho, Chairman of the Da Nang city People’s
Committee, said the port could handle up to 10 million tonnes of goods a
year.
“The second phase of the project will play an important
role in the city’s transport development master plan by the year 2020 with
orientation towards 2030. It would also be suitable with the marine
development strategy of Vietnam in general and Da Nang in particular,” Tho
said.
He said the project faced some difficulties relating to
land procedures and environment impacts in the initial period. However, they
have quickly overcome the difficulties with the support of the transport
ministry, the people’s committee and relevant agencies as well as available
infrastructure.
The port is designed to handle 14 million tonnes of
cargo, including 800,000 TEUs (twenty-foot equivalent unit), by 2025.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. The port, established
in 1976, has operated as a limited company under the ownership of the Vietnam
National Shipping Lines (Vinalines) since 2008 before becoming a joint stock
company in the middle of 2014.
According to Vietnam’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 Vietnam’s central provinces and the Central
Highlands, southern Laos and northeast Thailand via the East-West Economic
Corridor.
Last year, Da Nang’s ports handled a record 6.5 million
tonnes of cargo, and hosted nearly 120,000 tourists disembarking from
cruises.
The Da Nang Port JSC also plans to develop Lien Chieu
Port to ease congestion at the overloaded Tien Sa Port.
Vietnam’s industrial production up
7.2 percent
Vietnam’s index of industrial production (IIP) in the
first seven months of this year rose 7.2 percent year-on-year, the General
Statistics Office (GSO) announced.
The growth rate was lower than the 10 percent
registered during the same period last year.
The processing and manufacturing sector, which accounts
for more than 70 percent of the total value of the industrial sector, grew
9.9 percent in the first seven months, electricity production and
distribution saw an increase of 11.6 percent, while the mineral industry
decreased 2.7 percent.
Economists from GSO said the low growth rate was due to
the decline in product consumption as the consumption index in June increased
by only 0.7 percent over May, while May’s consumption index grew 5.2 percent
over April.
Industrial products saw high growth, such as television
which rose 79 percent, rolled steel grew 23.5 percent, automobiles increased
22 percent and animal feed jumped 19.7 percent, besides cement that rose 15.7
percent and liquefied petroleum gas (LPG) by 14.8 percent.
Meanwhile, industrial output of motorbikes and leather
and footwear fell 1.2 percent and 1.3 percent, respectively, while sugar,
crude oil and mobile phones declined 5.5 percent, 6.8 percent and 8.5
percent, respectively.
According to GSO, the capacity for improvement in
industrial production in the rest of this year was limited as the average
inventory rate in the first six months was 70 percent, declining only 1.5
percent compared to the previous five months.
Provinces where the IIP saw high growth were Binh Duong
at 8.5 percent; Dong Nai at eight percent; Hai Phong at 16 percent; and Da
Nang at 11.5 percent; besides Bac Ninh at 9.7 percent; HCM City at 7.1
percent; and Hanoi at 6.8 percent.
The southern region’s industrial production expanded by
7.5 percent year-on-year in the first half of this year, according to a
report by the Ministry of Industry and Trade.
Retail sales and services were worth 922 trillion VND
(41.9 billion USD), an increase of 6 percent.
The region’s exports were worth 43.8 billion USD, an
increase of 11 percent.
This year the manufacturing and trading sectors set
themselves targets of maintaining higher industrial growth than the national
average and retail and services revenues of 89 billion USD, or 13.6 percent
higher than last year.
The export targeted is 98.8 billion USD, an increase of
14.2 percent.
The figures were tabled at a conference organised by
Binh Duong Province’s Department of Industry and Trade last week on speeding
up administrative reforms and strengthening connectivity and cooperation for
integration and development.
The conference was attended by Deputy Minister of
Industry and Trade Do Thang Hai and the leaders of the 20 provinces and
cities in the south.
Officials from HCM City’s Department of Industry and Trade
have urged southern provinces and cities to help sell 100,000 tonnes of salt
produced by farmers in its coastal district of Can Gio.
Pham Thanh Kien, the director of the department said at
the conference that the city faces a challenge in finding buyers.
In the recent salt season 140,000 tonnes were harvested
in Can Gio but only 40,000 tonnes were sold to wholesalers.
To sell salt and other stockpiled items, there should
be cooperation between provinces and cities in the region, he said.
Da Nang asked to use ODA effectively
Deputy Prime Minister and Foreign Minister Pham Binh
Minh has urged the central city of Da Nang to use official development
assistance (ODA) sources effectively as those with low interest rates will
end next year.
At a working session with the municipal leaders on July
30, the Deputy PM said the Government plans to build a mechanism to manage
and use ODA sources more effectively, which will require payment
responsibility and solvency of localities.
He stressed that projects using ODA capital must ensure
requirements on efficiency and solvency, especially when the ODA loans
account for 26 percent of the total public debt and 15 percent of GDP, and it
becomes scarcer after Vietnam joins the group of medium-income nations.
Minh praised Da Nang for its efforts to attract ODA
projects and ensure their progress, contributing to the city’s socio-economic
development.
The city also recorded the high ODA disbursement rate
of over 30 percent, 10-12 percent higher than the country’s average level.
According to the municipal People’s Committee, Da Nang
implemented 13 ODA projects worth over 700 million USD in the 2011-2015
period, helping the city improve infrastructure, water supply, health care,
and information technology facilities.
At the working session, the city’s asked ministries and
sectors to further support Da Nang in connecting with and calling on
potential investors to pour money into priority fields such as precise
mechanics, biotechnology, and IT.
Deputy PM Minh promised that he will instruct the
Foreign Ministry to assisting the city in attracting foreign investment and
promoting tourism.
Regarding preparations for the 25th APEC Summit to be
held in Da Nang in 2017, the Deputy PM urged the municipal authorities to
swiftly design a master plan for the event, towards taking the occasion to
introduce the city’s potential and strengths and promote trade and investment
links.
Largest woodchip processing factory
in Phu Yen starts operation
The largest woodchip processing factory for export in
the south central province of Phu Yen was officially put into operation at
Dong Bac Song Cau Industrial Park on July 31.
The 36,000-sqm factory was built by a local private
enterprise at a total cost of 100 billion VND.
According to Tran Dang Khoa, Director of Bao Chau
Private Enterprise, the project is set to produce 100,000 tonnes of woodchip
annually, with a designed capacity of 36 tonnes per hour, during its first
phase.
It will then switch to manufacture 100,000 tonnes of
wood pellets in 2017 for export to the Republic of Korea, the US and the EU,
he said.
The company has a 2,000-hectare material area to feed
the factory. It has worked with the National Economics University, Bureau
Veritas and RoK-based Dongseo University and Kangwon National University to
study new wood processing technologies.
Lotte Mart opens store in Nha Trang
Republic of Korea (RoK) retailer Lotte Mart has
recently opened a shopping mall in Nha Trang city, the central coastal
province of Khanh Hoa, its 13th in Vietnam.
Situated on 23/10 Street, Lotte Mart Nha Trang has a
supermarket, a luxury mall, restaurants and fast-food shops, and an
entertainment area.
The supermarket sells more than 30,000 items, including
fresh and dried foods, household utensils, fashion products and cosmetics.
It has amenities like currency exchange, free wifi,
free delivery and others.
To mark the opening, Lotte is offering attractive
discounts.
At the opening ceremony, it made a donation of 50
million VND (2,242 USD) to the Khanh Hoa province Social Welfare Centre.
Lotte, which came to Vietnam in 2008, plans to have 60
stores nationwide by 2020.
FLC Quy Nhon opens, hoped to give
boost to local tourism
The FLC Quy Nhon resort complex was inaugurated by the
FLC Group in Nhon Ly commune, the central province of Binh Dinh on July 30.
Speaking at the opening ceremony, Chairman of the
provincial People’s Committee Ho Quoc Dung said the opening of the complex
will give a great boost to local tourism industry and provide jobs for thousands
of local residents, contributing to the socio-economic development of the
province in the coming years.
The 1,300-hectare complex includes a 36-hole golf
course, 1,500-room luxury resort, a marine eco-tourism area, a luxury hotel,
a zoo and a 1,500-seat international convention centre.
FLC Quy Nhon’s golf course, or Golf Links, is regarded
as one of the three most beautiful golf courses in Asia.
The FLC Group has also been constructing a 1.7-hectare
hotel complex, FLC Sea Tower Quy Nhon, in An Duong Vuong street, down town
Quy Nhon city at a total cost of 2.3 trillion VND, raising its combined
investment in Binh Dinh to over 7 trillion VND, or 11.1 million USD.
The twin tower includes a 25-storey building with a
7-star hotel, a shopping mall and an entertainment area.
Japanese locality strengthens
cooperation with Vietnam
Businesses in the Japanese Prefecture of Aomori are
interested in seeking opportunities in Vietnam, said Mimura Shingo, Governor
of the prefecture.
The governor made the remark during a meeting with
Vietnamese Ambassador to Japan Nguyen Quoc Cuong who paid a working visit to
the Japanese locality from July 25-28.
At the meeting, the two sides discussed measures to
boost cooperation between Aomori and Vietnamese localities, especially in
agriculture, commercial exchange, aquatic products, human resource training
and tourism.
Governor Shingo expressed his hope that he will lead a
delegation of enterprises to visit Vietnam in a near future.
Also on the working trip, Ambassador Cuong participated
in a seminar on Vietnam’s economy held by the Aomori Chuo Gakuin University.
At the event, which attracted the participation of
about 350 local leaders and leading businesses, the ambassador presented a
speech highlighting Vietnam’s orientations on socioeconomic development as
well as possible cooperation opportunities between Vietnam and Japan in the
coming years.
He also had a working session with the university’s
authorities and interacted with nearly 60 Vietnamese students who are
studying at the university.
Located in the northernmost of Honshu island, Aomori
has a population of 1.3 million people. Its annual Gross Domestic Products
reaches about 45 billion USD.
The prefecture yields the largest apple output in
Japan.
Last year, Vietnam officially granted certificates to
allow apples from Aomori to enter the country.
Businesses honoured on HOSE’s 16th
aniversary
The Top 50 Best Annual Reports of listed companies on
Vietnam’s two stock exchanges were honoured during a ceremony held on July 29
to celebrate the 16th anniversary of the HOSE, which began operation in July
2000.
The Top Ten winners of the Vietnam Annual Report
Awards, organised by the HCM Stock Exchange, Vietnam Investment Review and
Dragon Capital Group include Bao Viet Holding (BVH), DHG Pharmaceutical JSC,
Pan Pacific Corp., FPT, HCM Securities Corp., Bao Viet Securities Co.,
Vingroup JSC, Century Synthetic Fibre Corp., Vicostone JSC and PetroVietnam
Drilling & Well Services Corp.
BVH also won the Outstanding Award thanks to its
excellent content and presentation.
DHG won First Prize, followed by BVH and VNM with
second and third prize for the Best Corporate Governance Section.
BVH also received First Prize for Sustainability
Reporting while second went to DHG.
All 50 winners received the best reports out of 136
finalists, who were selected from 600 eligible reports of listed companies.
In the winners’ list, 34 reports belong to firms listed on the HOSE and 16 on
the HNX.
The HCM Stock Exchange became operational in 2000 with
two listed firms and to date the number has grown to 309. In its 16th
operational year, daily trading value has reached almost 2.4 trillion VND
(105 million USD) and its market capitalisation represents 28 percent of the
country’s GDP.
More than 253,000 billion VND were raised through
auctions of State-owned enterprises that sell shares to become joint stock
companies and new share issues.
The exchange is expected to complete all necessary
conditions in 2017 to put the covered warrant product into play, which is
already in use in 42 out of 56 members of the World Federation of Exchanges
(WFE), to which HOSE is a member, says the exchange’s chairman Tran Dac Sinh.
HCM City workshop seeks to promote
sales
Measures and strategies to increase the sales abroad
and in the domestic market were the focus of a seminar held by the Business
Studies and Assistance (BSA) centre and the Business Association of High
Quality Vietnamese Products in Ho Chi Minh City on July 29.
According to Tran Thai Ha, a representative from the
market research firm Nielsen Vietnam , the Vietnam's Consumer Confidence
Index (CCI) raised again in late 2015, standing at 108-109 points, while the
retail growth was slowed down, reaching between 8-9 percent.
Additionally, the fast - moving consumer goods (FMCG)
in big cities recorded slight growth, up about 3 percent in the first half of
2015 and 5 percent in the same period of 2016.
Participants heard that producers are meeting with many
challenges in selling their products in the remaining months of this year.
CEO and General Director of the Bich Chi Food JSC Pham
Thanh Binh said enterprises should pay attention to region-based goods
distribution, especially in the New Year festival, because people in each
region have different shopping habits in the occasion.
Producers were recommended to take more promotional
campaigns and after-sales services in order to attract retailers and
consumers.
Authorities of the southern province of Binh Duong met
more than 90 enterprises from the Republic of Korea operating in the locality
to update them of the province’s socio-economic situation and investment
attraction policies, and listen to their feedback and proposals.
Tran Thanh Liem, Chairman of the provincial People’s
Committee, said that in the coming time, Binh Duong will continue improving
its investment environment, enhancing its competitiveness and increasing
supports for investors.
The province will mobilise various available resources
to complete its infrastructure system, including transportation, water and
energy supply, and environmental protection system, while expanding
industrial parks and strengthening human resources training, he said.
Liem underscored the provincial government’s
commitments to speeding up administrative reform to ensure procedures are
transparent and simple, and developing high-quality services to meet
investors’ production and business demands as well as its urban industry
growth.
Binh Duong vows to ensure social security, safety and
order, he added.
During the meeting, representatives from the RoK
Business Association and RoK enterprises in the province voiced obstacles
facing them, including a lack of international schools for their children,
the slow reply of some departments and agencies to their questions, and the
difficulty and high cost of transportation.
According to Nguyen Thanh Truc, Director of the
provincial Planning and Investment Department, Binh Duong has so far
attracted 2,713 foreign-invested projects with a total capital of around 25
billion USD.
The province has nearly fulfilled the yearly target of
FDI attraction, he said, adding that a total of over 1.14 billion in FDI has
been licensed for 126 new and 68 underway projects in the first half, a rise
of over 12.5 percent year on year.
The RoK is currently the third largest investor in Binh
Duong with 569 projects totalling 2.25 billion USD. In the first six months
of this year, RoK investors have invested in 27 new projects and added 155.2
billion USD in 13 underway projects in the locality.
HCM City hopes for new wave of
Malaysian investment
Ho Chi Minh City hopes to welcome a new wave of
Malaysian investors, especially following the formation of the ASEAN
Community and the conclusion of the Trans-Pacific Partnership (TPP).
Le Thanh Liem, Vice Chairman of the municipal People’s
Committee, made the remark when he received a delegation from Malaysia’s
Consulate General in HCM City on July 29.
He affirmed the city’s determination and efforts to
simplify administrative procedures and improve the investment climate in
order to provide the best conditions for foreign businesses, including those
from Malaysia, to operate in the locality.
Sofia Akmalabd, Malaysian Consul General, said Vietnam
and Malaysia see great potential for cooperation as they are members of the
TPP and the ASEAN Community.
Malaysia and HCM City need closer links to boost their
trade and investment in the future, he noted.
As of June 2016, Malaysia was the second largest
investor in HCM City with 220 valid projects capitalized at 5 billion USD.
Malaysian investors mainly pour money into such sectors
as processing, manufacturing, trade, accommodation and restaurant services.
Thua Thien-Hue aims to become
fashion industry hub
The central Thua Thien-Hue Province plans to spend more
than VND6.6 trillion (US$295 million) on transforming itself into a textile
and garment hub in the country's central region.
This is the main objective of the province's textile
and garment planning for the 2016-2020 period.
Under the plan, the province will focus on developing
the domestic market and expanding export markets, with exports being a
driving force for the sector's development; boosting research, product
design, brand-building and promotion; and developing a professional fashion
industry to change the rural labour structure.
Chairman of the provincial people's committee Nguyen
Van Cao said in order to develop the sector sustainably and ensure enough
supply of materials for production, the province had co-operated with the
Centre's co-ordinating board of key economic zones to build a centre for
supplying apparel materials.
The centre would cover 400ha in the Phong Dien
Industrial Zone, he said.
Highly appreciative of the project, many textile and
garment companies located in the zone such as Huayang and Thailand's Freetex
Elastic companies had expressed their willingness to expand their factories,
Cao said.
In addition, to create a closed production chain, the
province is also conducting research of modern wastewater treatment systems
to protect the environment.
Due to dependence on materials supplied by partners,
local textiles and garment companies had lost their competitiveness and the
sector's efficiency had also been affected, Cao said.
That's why in the near future, companies would be urged
to transfer their production from a processing model to ODM (original design
manufacturing) or OMB (original brand manufacturing) model, he said.
The province is now home to six industrial zones, with
50 textiles and garment enterprises.
Gas price cut on August 1
The retail price of a 12kg cooking gas canister was
reduced by VND4,500 (US$0.2) to fall from VND250,000 to VND255,000 in
southern cities and provinces on August 1.
In an announcement, local gas distributors said the new
gas prices had been conveyed to all agents, businesses and customers in HCM
City and other southern cities and provinces.
Tran Van Phuc, head of Saigon Petro's business section
said the average price of gas in the world market was announced to be
US$287.5 per tonne, a $15 cut compared with the price in July. That's why the
domestic gas price has been revised to conform to the market change and to
ensure customers' rights and interests.
The price of gas has continuously fallen in the last
two months, with the total reduction amounting to nearly VND20,000, thanks to
price cuts in the world market.
Businesses told to prepare for Tet
To boost sales at the peak shopping season for Tet
(Lunar New Year), Vietnamese enterprises need to pay more attention to
customer demand in each region in order to map out proper production and
distribution plans, delegates told a seminar in HCM City on Friday.
Tran Thai Ha, a representative from the market research
firm Nielsen Viet Nam, said the most-mentioned products during Tet include
beer, beverages, coffee, and confectionaries. But the demand was different in
each region in the period.
For instance, during last Tet, sales of beer and
beverages increased significantly compared to normal time in the south, but
in the north, beer and beverages sales slightly reduced, while demand for
confectionary went up strongly, she said.
Firms usually release their Tet products in early
November, but with the 2017 Tet falling on January 28, earlier than in
previous years, businesses should prepare commodities for Tet early, she
said.
Besides, to increase sales during peak season, firms
should make efforts to bring their products into retail stores and launch
promotional programmes.
Despite the Viet Nam economy showing signs of slowing,
its retail sales growth has remained high, she said.
She also shared the top five factors that influence
custome decisions over where to buy products. They are availability, quality,
location, store personnel and product assortment.
More and more Vietnamese shoppers look for products
with healthy ingredients, she said, adding that this is a good opportunity
for retailers to boost sales of these products.
Delegates at the seminar also shared their experience
in penetrating overseas markets.
Nguyen Dang Hien, general director of Tan Quang Minh
Manufacture and Trading Co Ltd (Bidrico), said by participating in trade
fairs held in Myanmar's big cities, his company found local distributors to
distribute its products.
Bridico chose to penetrate the modern trade channels
first, by selling its products at a supermarket there, where Myanmar
consumers give priority to go for shopping, before distributing its products
in the traditional channels, he said.
Philip Zerillo from the Singapore Management University
said finding a proper distributor is the most important factor in helping
businesses distribute their products abroad. Businesses should find
distributors that give them insights in the local market, so they know how to
adapt their pricing and products, he said.
Pham Thanh Binh, chairman and general director of Bich
Chi Food JSC, said 10 years ago, his company only sold in the domestic
market, but its earning from exports currently account for 66 per cent of its
total revenue, with its processed farm produce available in all ASEAN
countries.
To succeed in overseas markets, firms must conduct
market research to develop suitable products for the target markets, he said.
Shops launch pre-school sales
As a new school year is just around the corner, many
supermarkets and bookstores have launched major promotions designed to
increase sales of stationery and other school supplies.
For instance, Co.opMart and Co.opXtra supermarkets
nationwide are offering sharp discounts on more than 1,000 items, including
student uniforms, school bags, notebooks, pens and other school supplies
until August 7.
School student uniforms such as white shirts, blue
trousers and skirts have an average discount of 35 per cent.
White notebooks, school bags, shoes, and many kinds of
school supplies of familiar brands like Sanding, Viettien, Novelty, SGC,
Biti's, Bita's. Miti, Thien Long and others have their prices discounted by
up to 50 per cent.
Big C is also running a discount programme called
"Hanh trang den truong" until August 8, with discounts between 15
per cent to 42 per cent applied on more than 880 items, including school
student uniforms, footwear, notebooks, school bags, and desk lamps, of which
many are new models.
In addition to discounts on prices, the programme will
also apply "buy two get one free" to certain items such as
notebooks and notebook covers.
Since the middle of this year, Lotte Mart supermarkets
have launched attractive discounts on products serving the upcoming academic
year.
School uniforms are discounted by 15 per cent, while
pen, ruler, backpack, notebook, pencil and other school items are discount at
over 30 per cent.
Many bookstores in HCM City, including Thang Long,
Nguyen Van Cu, and Fahasa, are offering 10 per cent to 15 per cent discounts
on textbooks, notebooks, pen and other items.
As in previous years, HCM City is carrying out a price
stabilisation programme for school equipment, which will go on until March
2017.
School equipment suppliers have been told to increase
supply by 15 per cent to 30 per cent to meet market demand.
The programme has attracted the participation of 15
enterprises, which registered to stabilise the price of 28 million notebooks,
1.369 million school bags and backpacks, and 320,000 pairs of shoes.
Tran Ba Dung, deputy director of Huong Mi Trading
Production Co Ltd, told Viet Nam News that his company was assigned to offer
stablised prices on 600,000 backpacks and schoolbags.
The company has developed many new models this year,
including terrain backpacks (which are easy to pull up stairs) and
anti-hunchback shaping backpacks, he said.
Besides providing products under the city's price
stabilisation programme, the company has also supplied products to other
provinces and cities nationwide, he said.
Its wholesales volume sold to Co.opMart supermarket
chain, Fahasa and PNC bookstores and first-level agents increased by 15 per
cent over the same period last year, he said.
Tran Van Tac, director of Tuan Viet Shoes Co Ltd, said
the company expects to sell 60,000 products in the 2016-17 school year.
Duong Chi Thanh, general director of Vinh Tien Joint
Stock Company, one of the largest manufacturers of high quality student
notebooks and stationery in Viet Nam, said the company has prepared 20 per
cent more notebooks to serve this school year, of which 40 per cent will be
sold in the price stabilisation programme.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Ba, 2 tháng 8, 2016
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