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BUSINESS IN BRIEF 28/10
CPI
rises less than expected
The
country's consumer price index (CPI) in October rose only 0.49 per cent
against last month, despite a number of factors that were expected to push
the index higher.
This
month's CPI was also much lower than the past few months. In September and
August, CPI rose 1.06 per cent and 0.83 per cent, respectively.
CPI
has increased by 5.14 per cent from December 2012 and by 5.92 per cent from
October last year, according to the General Statistics Office (GSO).
Director
of the GSO's Pricing Department Nguyen Duc Thang said that CPI this month was
lower than previous Octobers, when it traditionally starts a five-month
upward curve.
Thang
said that CPI was also under pressure from the seasonal capital injection.
October
is often a time when capital construction funded by the State budget starts,
Thang explained, adding that local producers, traders and importers also
started to push production at this time in the lead up to Lunar New Year.
This
month's CPI was also expected to be hit by unfavourable weather that restricted
food supplies.
However,
low demand in the local market helped restrict the CPI rise this month to
only 0.49 per cent.
Due to
the low demand, the prices of food and foodstuff in October increased by 0.86
per cent, despite the restricted supply.
Mirroring
the same trend, the cost of housing and construction materials only rose 0.5
per cent, even though it was the start of the construction season.
According
to the GSO, the cost of nine out of 11 goods used to calculate the CPI
increased this month, with food and foodstuff rising the most.
The
price of transport dropped by 0.17 per cent, while prices of postal services
and telecommunications inched down 0.03 per cent.
In
October, the CPI in urban areas posted slower growth compared with rural
area, at 0.42 per cent compared to 0.54 per cent.
Not
included in the CPI, gold prices lost 2.87 per cent month-on-month and US
dollar prices edged down 0.18 per cent.
Supermarket
offers big discounts
The
Co.opmart and Co.opXtraplus Thu Duc supermarkets have been offering discounts
of 50 per cent on more than 1,200 cosmetics and fresh food products from
October 23 to November 10.
More
than 300 household appliances are also being discounted from 30-49 per cent.
Free gifts will be distributed to buyers.
Besides
the mentioned "Giai dieu mua thu" (Autumn Melody) programme, they
also offer other kinds of discounts, including "buy 2, get 1 free"
or "buy 1, get 1 free" during October 25-27.
Malaysia
to build thermal power plant in Vietnam
Che
Group Managing Director K.K. Chang said each plant can produce 10MW by using
rice husks as main material.
The
first will be constructed in Hau Giang province later this year and the
remaining ones in six other provinces within five years.
He
said this is the first kind of thermal power plant ever built in
All
machinery and equipment will be supplied by CHE Group which cooperates with
the
CHE
Group and Torftech have established a joint venture named Torche Energy Sdn
Bhn as the building contractor to do the work.
Vietnam
to accelerate FTA negotiations with EFTA
Vietnamese
Minister of Industry and Trade Vu Huy Hoang made the proposal at a working
session with Johann N. Schneider-Ammann, Head of the Federal Department of
Economic Affairs, Education and Research of Switzerland in
He
proposed
Johann
N. Schneider-Ammann, who is visiting
This
agreement will create a complete legal framework for improving the business
environment and increasing trade ties between the two countries, he said.
As of September
2013
During
his current
India
affirms close trade ties with Vietnam
Addressing
a workshop in Ha Giang province on October 24, Ruolngul noted the Indian
government prioritises strengthening cooperation with
Both
Trade
ties between
Many
of Vietnamese products from
Trade
exchanges between
As of
September 2013,
Workshop
participants discussed the prospect of trade cooperation between
Business
representatives of 28
The
Indian government has established a support fund for development projects
within the framework of India-ASEAN cooperation. It has committed US$25,000
to a school project to improve the living and working conditions of teachers
and ethnic students in Ha Giang’s mountain areas. The project is due to get
off the ground in 2014.
Digital
signatures will be used for e-customs
Import
and export firms will begin phasing in the use of digital signatures for the
e-customs system this year, according to the Vietnam General Department of
Customs (VGDC).
The
move forms part of the implementation of a decree that regulates commercial
importers and exporters using e-signatures for e-customs procedures.
Director
of the VGDC's Customs Information Technology and Statistics Department Nguyen
Manh Tung said that digital signatures will help improve security and safety
for enterprises in e-customs procedures.
Tung
said at a press conference on October 24 that using digital signatures in
e-customs will benefit both commercial importers, exporters and the customs
sector.
He
added that the sector has asked the Finance Ministry to allow enterprises
without digital signatures after the November deadline, to perform customs
procedures.
The
customs sector is also working with relevant agencies to provide information
and training on digital signature procedures nation-wide.
A VGDC
representative said that the department has accepted digital signatures
provided by e-signature service providers licenced by the Ministry of
Information and Communications, including FPT, BKAV, VNPT-CA, Nacencom,
CK-CA, Safe-CA, Viettel-CA and SmartSign.
Customs
statistics showed that more than 40,000 import and export enterprises this
year were using e-customs procedures in 34 customs departments nation-wide.
Around 3,000 enterprises have registered digital signatures for e-customs.
By mid
of November, the customs sector will test run a new system, called the
Vietnam Automated Cargo and Port Consolidated System and the Vietnam Customs
Information System (VNACCS/VCIS) that requires digital signature for
procedures.
The
system is scheduled to be put into operation nation-wide in April next year.
Vietnam
seeks to boost trade, exports
Nearly
100 economic experts, State trade managers, producers and exporters met at a
seminar in the central
They
shared the view that to realise the goal, Vietnam should establish a national
committee on trade facilitation while ramping up transport infrastructure and
services, simplifying legal procedures and restructuring chains of farming
production.
Hoang
Van Dung, Deputy Chairman of the Vietnam Chamber of Commerce and Industry
(VCCI), suggested taking a new approach to improving competitiveness as the
country is facing a decline in export orders due to global economic
turbulence.
It is
made more challenging that low-tech products and raw materials are
Sandeep
Mahajan, World Bank (WB) head economic expert, recommended improvements in
Vietnam’s three key pillars of transport infrastructure – a trade logistics
system, legal procedures in cross-border trade and the restructuring of its
supply chain in order to compete with other rival nations.
The
event was co-hosted by the National Committee for International Economic
Cooperation, the VCCI and the WB.
Forum boosts
economic ties with Middle East, North Africa
The
Ministry of Foreign Affairs will host a forum in
This
is the first large-scale event strengthening cooperation with the two
overseas regions held in
It
will provide policymakers and business leaders a valuable opportunity to
explore partnerships and investment potential, promoting economic cooperation
for shared benefits.
The
forum also helps
The
Middle East and North African regions extend from
Their
emerging economies possess impressive foreign currency reserves and diverse
consumer demands that match well with
RoK
builds electronics factory in Ha Nam
The
Built
at Dong Van II industrial zone at a total cost of US$20 million, Anam
Electronics Vietnam will be put into operation in April 2014 to churn out
electronic appliances and audio-visual equipment.
It is
designed to manufacture 1.5 million products every year for export, mainly to
Europe and the
This
is Anam Electronics’ first plant outside the
The
company wants to turn Ha
Anam
Electronics is the first company to produce TV sets in the RoK.
Jump
in Vietnamese rice prices in recent weeks is also due to demand from
Statistics
from the Vietnamese Government show that
This
week, the Free on Board (FOB) price of 5-percent broken rice at
However,
higher export prices could mean loss of new deals to rivals such as
TPP countries
meet on intellectual property
Delegations
from 12 member countries of the Trans-Pacific Partnership free trade (TPP)
negotiations started a meeting on intellectual property (IP) in
Negotiations
on IP issues are expected to be tough, as there is a wide range of technical
and contentious issues. They are considered a bottleneck in the TPP process,
while the negotiating nations aim to conclude an overall TPP deal by the end
of this year.
Among
issues in the area, the
Meanwhile,
The
TPP countries are
The
deal, when realised, will see the establishment of a free trade area with a
800-million population which accounts for one third of global trade and
nearly 40 percent of the world economic output.-
Employers
prefer people with good thinking
When
it comes to recruiting new staff, businesses will give preference to people
with good thinking rather than those with previous work experience, according
to business leaders at a talk on human resource strategy held last week as
part of
Do
Thanh Nam, chairman and director of Win-Win Strategy Consulting Co., said
that when he was a university lecturer in HCMC, he gave a 10/10 mark to a
test on strategy done by a student who had failed three times earlier. He
added the student’s thinking captivated him and that in reviewing his three
early tests, he found they were all good.
According
to
Meanwhile,
the general director of leading meat processor Vissan Co., Van Duc Muoi, said
that when he took up the top position of the company, he faced a
poorly-organized entity with many departments virtually inactive.
Vissan
had to undergo restructuring and the main task was to remove unnecessary
departments and retrain employees.
However,
Vissan still needed new employees, especially ambitious and enthusiastic
ones, and then let them work with the old ones so that they could help
develop their capabilities.
Tran
Tuan Anh, general director of Zecchino Co., described staff as an orchard
that could not produce good fruits without good care.
Nhan
Huc Quan, general director of New Toyo Co., said the foreign-invested firm
started using more local staff 10 years ago to reduce costs. The company has
let certain good staff rise through the ranks as they can interact with the
rest more easily than those recruited from outside.
Similarly,
employees at Lien A Mattress Production and Trading Co. are promoted based on
their achievements. Training of internal personnel is cheaper than recruiting
outsiders, according to general director Lam Ngoc Minh.
Top
1,000 corporate tax payers announced
Vietnam
Report JSC has made public a list of top 1,000 corporate tax contributors
this year (V1000), which paid a total amount of about 77 trillion VND (3.6
billion USD) to the state coffer.
The
top ten include the PetroVietnam Exploration and Production Corporation
PVEP), Vietnam Military Telecommunications Group (Viettel), Vietnam Mobile
Information Company (VMS), PetroVietnam Gas Corporation (PV Gas), Vietnam
National Oil and Gas Group (PetroVietnam), Vietnam Joint Stock Commercial
Bank for Industry and Trade (Vietinbank), Vietnam Bank for Agriculture and
Rural Development (Agribank), Vietnam Dairy Products JSC (Vinamilk), Vietnam
Joint Stock Commercial Bank for Foreign Trade (Vietcombank) and Vietnam Joint
Stock Commercial Bank for Investment and Development (BIDV).
There
are 42 State-owned enterprises in the top 100 in the list, contributed over
64.5 percent of the total tax amount paid by the 100 leading companies.
Meanwhile,
the top 100 companies accounted for 64.3 percent of the total tax payment of
the top 1,000, two percent lower than last year’s figure.
This
is the fourth consecutive year the V1000 ranking has been compiled. It aims
to honour and encourage enterprises that make the biggest tax contribution to
the State budget.-
Vinacomin
aims to export over three million tonnes of coal
The
Vietnam Coal and Mineral Industries Group (Vinacomin) targets to sell 11
million tonnes of coal in the last three months of this year, including 3-3.5
million tonnes for export, based on forecasts of increasing domestic demand
for the fossil fuel.
Vinacomin
Deputy Director General Nguyen Van Bien announced the goal at a press
conference in
He
noted that demand for coal serving domestic thermoelectricity power plants is
expected to surge in the dry season, while coal-export tax has been reduced
to 10 percent from 13 percent in the first half of the year, thus
facilitating exports.
The
group’s coal sale in the third quarter only fulfilled 15.6 percent of the
entire year’s target, down 40 percent from the previous months due to a
reduction in domestic coal consumption and dropping export price.
In the
January-September period, Vinacomin earned 39 trillion VND (1.83 billion USD)
in turnover and made a 1.5 trillion VND (70.5 million USD) profit.
This
year, the group strives to sell more than 39 million tonnes of coal,
equivalent to last year’s aggregate figure, including 11.5 million tonnes for
export, a year-on-year decrease of three million tonnes.
Project
helps EU businesses seek opportunities in Vietnam
A
4-million-EUR project was signed in
The
project is seen as a joint effort by the EU Delegation to
It is
expected to benefit both European and Vietnamese businesses as well as boost
their economic-trade relations in the time to come, said Ambassador Franz
Jessen, head of the EU Delegation to
Under
the project, a SME supporting centre is scheduled to be set up in
According
to Chairman of the chamber Pierre-Jean Malgouyres, one of the priorities of
the project is to create all favourable conditions for both sides’ businesses
to promote their cooperation with specific support programmes and practical
services.
As
European
businesses hope to study the investment climate in such potential market as
Electronic
billing service makes
The
Vietnam Datacommunication Company (VDC), a subsidiary of the Vietnam Posts
and Telecommunications Group (VNPT), officially launched
The
new feature saves enterprises money previously spent on printing, delivering
and storing paper-based bills. It also saves time, as customers no longer
have to wait for their bills to arrive by post. Electronic billing is green
too, drastically reducing the amount of paper used and wasted.
The
e-Billing service is an integral part of current efforts to modernise
businesses’ accounting processes. Enterprises and organisations that issue
bills in large quantities could benefit greatly, including those in the
fields of telecommunication, electricity, oil and petrol, water, banking,
credit and television.
VDC
offers businesses the choice between two types of e-Billing services –
‘Package’ or ‘Solution model’. Customers who choose the first will be able to
issue and manage electronic bills directly on the VDC network, while those
who select the latter will invest in building proprietary infrastructure and
acquiring the necessary hardware with consultation and instruction from VDC.
VDC
has also rolled out digital signature authentication (VNPT-CA) and online tax
declaration (VNPT-TAX) services to support and enable the rapid and
widespread application of the e-Billing initiative.
Shrimp
exports enjoy high turnover
For
the first time ever, exports of white-leg shrimp have surpassed those of
giant tiger prawns, said Truong Dinh Hoe, general secretary of the Viet Nam
Association of Seafood Exporters and Producers (VASEP).
In
2010, white-leg shrimp accounted for 26 per cent of shrimp exports. Today,
they account for 47 per cent.
The
country's total export turnover of shrimp in the first nine months of the
year exceed US$2 billion; white-leg shrimp posted export turnover of $952
million and giant tiger prawns accounted for the remainder, according to Hoe.
Other
seafood products such as tra fish, tuna and molluscs saw a decline in export
turnover.
The
export volume of giant tiger prawns rose only 2.14 per cent in the third
quarter, while white-leg shrimp exports were up nearly 80 per cent over the
same period last year.
Early
mortality syndrome (EMS) has caused large losses among shrimp farmers in
The
farming acreage of white-leg shrimp in 2013 was 12 times higher than in 2012,
according to the Fisheries Department.
While
the production area of giant tiger prawns was 5,581,441ha, in comparison with
only 47,283ha for white-leg shrimp, total production of white-leg shrimp
reached 106,497 tonnes –10 times that of the larger shellfish.
The
total acreage of white-leg shrimp surged rapidly because farmers could
harvest them for export after two and a half months, avoiding the risk of
Moreover,
the productivity of white-leg shrimp was much higher than that of giant tiger
prawns, said Nhu Van Can, an official from the Fisheries Department.
The
volume of white-leg shrimp exported to
Hoe
predicted that shrimp prices would continue to go up and export turnover
would rise in the remaining months of the year, with average export turnover
of $250 million per month and total shrimp exports reaching $2.5 billion to
$2.6 billion.
Organised
by the Iranian Embassy and the Viet Nam Chamber of Commerce and Industry in
Speaking
at the event, Iranian Ambassador Hossein Alvandi Behineh said: "One of
the main obstacles hindering businesses is the lack of adequate, updated information
about trade and economic opportunities between the two countries."
Both
sides should find ways to remove these obstacles and expand trade relations
to a higher level of US$1 billion a year, he added.
With a
pivotal geographical location in the Middle East and as a member of the
Economic Cooperation Organisation, Iran can provide "an easy access for
Vietnamese products to the Middle East, Central Asian and CIS
countries", he said.
"On
the other side,
Vo Tan
Thanh, director general of VCCI branch in
Bilateral
trade has increased in the past 10 years, from US$6.5 million in 2001 to $185
million in 2011 and $316 million last year.
"But
it is still modest compared to the potential of the two countries," he
said.
Hossein
said that
Potential
fields of cooperation between the two countries can be in energy,
petrochemical, agriculture, fisheries, construction, foodstuff, garment,
shoes, pharmaceuticals, tourism and others, he said.
To
enhance economic ties between the two countries, Thanh said "problems
involving payment methods must be solved".
Habibollah
Pour Motahar, deputy head of mission counsellor at the Embassy of the Islamic
Republic of Iran, said to eliminate payment barriers in other currencies,
businesses should attempt to trade via the national currency.
This
is similar to the way
Motahar
also urged the two countries to launch direct flights and direct shipping
lines to facilitate trade and reduce transport costs.
It
imports bitumen, petrochemical and other chemical products such as urea,
textiles and raw leather from
Construction
violations uncovered
Violations
of construction investment and budget use have been found in 24 fresh water
and public toilet projects across central
The
news was announced by the provincial people's committee chairman Cao Khoa.
Inspectors
discovered that during 2010-13, the provincial Department of Education and
Training, which invested in the project, had declared the cost VND359 million
(US$17,000) higher than the actual investment.
The
department has been requested to submit the extra money to the local budget
and discipline individuals who let the wrongdoing take place.
Derivatives
decree to manage market
The
State Securities Commission has completed a decree on derivatives
transactions which will be submitted to the Government for approval this
year.
According
to director of the Market Development Department under the commission Nguyen
Son, the domestic stock market was set up thirteen years ago, but a
derivatives market had yet to be firmly established.
Currently,
only stocks, bonds and fund certificates are commonly traded.
Derivatives
transactions became essential in
Several
commercial banks provide currency derivatives, but not enough to meet market
demand and prevent risks from exchange rate and interest rate fluctuations.
Regarding
the commodities market and futures trading, common products including rice,
coffee, rubber and steel have been added to foreign trading floors such as
the Commodities Exchange (Comex) and the London Metal Exchange (LME).
However,
the application of derivatives in
The
decree would set a legal framework for the derivatives market under State
management, according to Son.
For
long-term development, derivatives transactions would be opened to stocks,
gold, interest rates, exchange rates and commodities.
He
said the operation of the derivatives market was complicated and required
careful preparations.
The
commission also asked the Ministry of Finance to set up regulations for those
allowed to participate in the derivatives market, operational licences, taxes
and fees to ensure the market operated efficiently and stably.
The
establishment of the derivatives market was in line with the restructuring of
the stock market and the Stock Market Development Strategy to 2020, said Son.
VN
economic outlook bright
Improved
global and domestic conditions offered promising prospects for the Vietnamese
economy in 2014-15, although significant challenges lay ahead, agreed
speakers at a conference in Ha Noi yesterday.
While
Asian economies were now structurally less dependent on foreign capital,
Asia's industrial production and exports might jump in the fourth quarter on
the
New
economic policies in
Le
Xuan Nghia, member of the National Financial and Monetary Policy Advisory
Council, said the domestic economy had seen the first steps of recovery since
September.
He
pointed out that manufacturing was showing high growth, with the industrial
production (IIP) index hitting 9.2 per cent in the fourth quarter. Exports
were also recovering strongly, increasing 9.5 per cent in September after
months of reduction.
Total
registered foreign direct investment (FDI) expanded 36 per cent to reach
US$15 billion in the first nine months.
Glenn
said FDI was a bright spot despite weak domestic demand and manufacturing had
so far attracted nearly 82 per cent of total FDI.
A
Government report delivered by Prime Minister Nguyen Tan Dung on Monday said
national gross domestic product (GDP) was forecast to grow by 5.4 per cent by
the end of the year, close to the 5.5 per cent annual target.
Glenn
said ANZ anticipated growth to come in below potential in 2013, at about 5.1
per cent. "To get back to potential growth (around 7 per cent), banks
and State-owned enterprises need to be restructured and the global economy
needs to return to ‘normal,'" he said.
While
foreign portfolio capital kept flowing out, the banking sector remained the
weakest link for the domestic economy.
Official
data revealed that the cumulative foreign indirect capital outflow reached
$185 million in the past 17 weeks; total lending rose about 6.5 per cent
during the first nine months, more than half the annual credit growth target
of 12 per cent.
"The
economy is depending largely on Government measures to restructure State-run
firms, the financial system and public investments," said Nghia.
He
said solving bad loans had to continue to be a key measure, as the lending
situation would determine investment decisions by the private sector, which
was facing great caution from lenders: "Pushing loans reasonably into
the economy remains a medium-term difficulty."
The
Viet Nam Asset Management Company (VAMC) could buy VND35-45 trillion
($1.67-2.14 billion) worth of non-performing loans by the end of the year and
the Government's VND100 trillion ($4.76 billion) bad debt solving package
could be used up by next June, he said, meaning additional policies would be
soon needed.
Nghia
said
Next
year, State budget deficits would be allowed to increase from 4.8 per cent to
5.3 per cent, he said, which would let the Government step up public
investments to facilitate economic growth.
Proposal
for different images on Vn. currency faces controversy
The
proposal of voters in the southern
Before
the sixth session of the 13th National Assembly, the SBV sought voters’
opinions for monetary policies, in which, voters in Long An Province
recommended that besides printing the image of Late President Ho Chi Minh, on
high-value notes, the SBV should print the images of other leaders who made
great contributions to national independence on the remaining notes.
On the
sidelines of the NA meeting on October 21, speaking with a DTiNews reporter
about this proposal, NA Deputy and Historian, Duong Trung Quoc, said, “It's
not a bad idea in principal but the selection of those to be represented on
the currency must be discussed." To date, only the image of the late
President, Ho Chi Minh is on the national currency. Therefore, the change
must have the peoples' approval.”
Meanwhile,
Economist Dr. Nguyen Minh Phong said it's a good idea, however, it needs the
consideration of management agencies because the criteria which define a person
who has made great contributions to the country can change in different
times.
“If
the choice is based on fixed criteria, comparisons that might cause concern
will obviously take place. Additionally, it is quite costly to change the
design of Vietnamese currency so I think we should publish a summary record
to commemorate these people or use their names for roads, bridges etc. Only
the images of one or two people should appear on the currency,” Phong said.
Economist
Bui Kien Thanh said that in the context of the current economic downturn,
with the bankruptcy of thousands of businesses, the government should spend
the state budget to support them, instead of thinking about the costly
exercise of printing new money.
Earlier,
replying to the voters in Long An Province, the SBV said, our currency is a
national symbol which conveys national values and other messages to users.
Thus, only images of important people or important events from history should
be selected and in Vietnam, this is decided by the Politburo.
According
to the SBV, the front side of the currency should show the image of the late
President Ho Chi Minh who is a national hero and a world cultural icon. His
image has justifiably been used since 1945, while on the other side, images
of Vietnamese people during the national protection and construction period,
as well as the country’s natural landscapes and cultural relics, are
favoured.
Hanoi
fails to deal with abandoned land
Hanoi
authorities set a target to settle the issue of many land plots left idle or
used for wrong purposes over the past years, but to date they have still
failed to control the problem.
In
mid-2012, the Hanoi People’s Committee found violations at 32 local land
plots in the four districts of Thanh Xuan, Cau Giay, Tay Ho and Tu Liem,
covering a total area of 488,545 square metres, used by 23 investors.
Among
those, more than 15 plots remain unused with a total area of 309,368 square
metres, while 10 others are used illegally as parking lots, restaurants,
garages and mini football grounds.
The
list of violators includes Vietnam Construction and Import-Export Joint Stock
Corporation (Vinaconex), Housing and Urban Development Corporation (HUD);
Hanoi Construction and Investment Joint Stock Company No2. (Hacinco) and Song
Da Corporation and a number of others.
After
a range of delayed projects, the municipal authorities have asked districts
to deal with land violations. However, over the past year, many of the plots
given for projects remain as they were, covered by wild grass.
Many
of the plots in Hanoi are used for restaurants and parking lots.
Along
Pham Hung Street in Cau Giay District and Tu Liem District there are dozens
of plots listed among those to be revoked.
Many
land plots covering thousands of square metres in Tay Ho District were
auctioned, but were left idle for many years.
Ba
Dinh District has at least nine projects left idle for many years, including
a 4,000-square metre one in Ngoc Ha Ward developed by Handico since 2003.
Nguyen
Trong Dong, Director of Hanoi Department of Natural Resources and
Environment, said, “We have proposed that the city withdraw land from the two
delayed real estate projects in Ba Dinh District for school and cultural
housing projects.
The
project was assigned to the investor in 1999, but, to date, it has been no
groundbreaking, he added. Some investors had financial difficulties due to
the economic downturn, but many intended to keep land.
The
vice chairman of the Hanoi People’s Committee, Vu Hong Khanh said, “Any
violator will be strictly punished.” However, in reality, settlement of the
issue remains very slow. The number of revoked projects is modest compared to
the found violations.
Pham
Sy Liem, Vice Chairman of the Vietnam Construction Association, said many
enterprises tried to seek authorities’ approval for their projects, but due
to their limited capacity, they left projects idle.
“It is
due to both the irresponsibility of investors and the lax management of
authorities,” Liem noted.
HCM
City wants to tighten import of used machines
Following
the Prime Minister’s instructions on enhancing control of imported technology
and machinery, the HCMC government is consulting relevant agencies over how
to choke off the import of outdated technologies from foreign countries.
Speaking
at a meeting held on Sunday with agencies and business associations, HCMC
vice chairman Le Manh Ha urged closer scrutiny on machinery from China,
following an announcement in 2011 by the neighboring country to close down
2,255 facilities with outdated technology that pollute the environment.
These
facilities are in the sectors of metallurgy, leather tanning, dyeing, steel,
cement, coal, glass, paper, alcohol, monosodium glutamate and chemical fiber.
“There
is high likelihood that Chinese enterprises have tried to sell old equipment
and machines to Vietnam,” said an officer at the HCMC Department of Science
and Technology.
Ha
said that he would propose the Ministry of Science and Technology to delegate
power to localities to control the import of such machines for easier and more
effective management.
European
SMEs supported to enter Vietnam
The
European Union (EU) will begin a project to establish a center next month to
assist European companies, especially small and medium-sized enterprises
(SME), to invest and do business in Vietnam under an agreement signed in HCMC
on Monday.
The
agreement was clinched by Franz Jessen, ambassador and head of the European
Union Delegation to Vietnam, and Pierre-Jean Malgouyres, chairman of CCIFV -
the French Chamber of Commerce and Industry in Vietnam.
“The
signing today is to make sure that further European investment will be coming
to Vietnam. Particularly, we are trying to increase the investment from
European SMEs,” Jessen told reporters after signing the agreement.
CCIFV
is the implementation partner of the project worth 3.8 million euros for the
center. Jessen said this business center would be located in HCMC but would
also organize activities in Hanoi to support European SMEs in this market.
European chambers of commerce will also get involved to bring into play this
initiative.
Malgouyres
said the center would operate as an open consortium consisted of European
partners in order to maximize assistance for the European SMEs to enter
Vietnam. He detailed this center would operate for least five years but
expected that it would be in place for many more years with support from the
EU.
European
SMEs when facing difficulties related to market access and coping with legal
issues when entering and operating in Vietnam would be helped to address
these challenges and find reliable partners, Malgouyres answered a relevant
question raised by the Daily after the signing.
Jessen
said the business center would officially operate during a visit of a vice
president of the European Commission leading a delegation of European
companies to HCMC in the next three weeks to promote cooperation between SMEs
of Europe and Vietnam. With collaboration of the Vietnam Chamber of Commerce
and Industry, these European SMEs will meet with local counterparts to
explore opportunities for forming joint ventures.
According
to the European Chamber of Commerce in Vietnam (EuroCham), the European
business delegation will sound out the prospects in a number of areas,
including tourism, agriculture and pharmaceutical.
The EU
ambassador Jessen said many European companies had asked about the Free Trade
Agreement (FTA) between the EU and Vietnam as this would affect their future
decisions. He added the two sides would convene at the fifth round of
negotiation for their FTA in Hanoi next week and things had progressed very well.
Exporters
advised to prepare for Vietnam-EU FTA
Exporting
firms are advised to know well about commitments of the Free Trade Agreement
(FTA) between EU and Vietnam which is still under negotiation to make use of
opportunities and boost export to 28 member countries of EU.
Pierre
Defraigne, Executive Director of the Madariaga - College of Europe
Foundation, said that enterprises should increase access to information,
regulations and opportunities concerning the Vietnam-EU FTA. This will help
small and medium enterprises to meet requirements when accessing the EU
market, he said at a dialogue on trade policy of the EU within the framework
of the Multilateral Trade Assistance (Mutrap) held on Monday in HCMC.
The EU
has adopted a policy towards the east aimed at seeking new markets and
boosting production of low-price products which will be supplied for the EU
market, he said. This is a chance for enterprises to expand their connection,
take advantage of the technological and technical development of EU member
countries and increase the production capacities.
According
to the Ministry of Industry and Trade, EU is currently the second biggest
trade partner and the biggest exporting market of Vietnam.
Two-way
trade between EU and Vietnam reached US$29.1 billion last year, with
Vietnam’s export to EU accounting for US$20.3 billion and import of US$8.8
billion. Major exporting products to EU are footwear, coffee, apparel,
furniture and seafood.
The
fifth round of negotiations for the FTA will be held in Hanoi next week.
Dong
Phuong opens new convention center
Dong
Phuong Group’s The Adora Grand View is expected to lead competition in the
wedding and convention center segment to heat up in HCMC.
The
Adora Grand View, located on Ngo Gia Tu Street in District 5 and inaugurated
on Wednesday, covers some 22,000 square meters and has seven large halls with
a total seating capacity of about 5,000 persons, the company said.
This
is the second The Adora convention center to be built by Dong Phuong after
the first inaugurated on Nguyen Kiem Street in Go Vap District last year
which can accommodate around 500 dining tables.
Investments
in the convention center segment have been rising in recent times thanks to
surging demand and fast capital investment recovery.
Ben
Thanh Land is among the local enterprises that have ventured into this market
segment as it has the Riverside Palace on Ben Van Don Street in District 4
with nine halls able to accommodate some 4,500 people at a time. The company
also plans to construct two more, with Nhu Ngoc Palace in Thu Duc District’s
Hiep Binh Phuoc Ward and Nam A Convention & Wedding in Phu Nhuan
District.
There
are around 120 wedding and convention centers of different sizes in the city.
The
newly-opened facility raises the total number owned by Dong Phuong to six.
Meanwhile, the group said it would inaugurate another project of the same
brand, The Adora Premium, on Nguyen Van Linh Parkway in District 7 at the
year-end.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 27 tháng 10, 2013
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