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BUSINESS IN BRIEF 28/11
Synthetic
fiber manufacturer to hold IPO
Century
Synthetic Fiber Corporation plans to make its initial public offering (IPO)
of shares on December 9 and get listed at the HCM City Stock Exchange after
that.
The
State Securities Commission allowed the new company, a synthetic fiber
manufacturer, to issue three million shares at a reference price of VND18,000
(US$2.8) each.
The
company and its major shareholder, Red River Holding, held a roadshow
yesterday to introduce the potential of the stock.
After
holding the IPO and issuing its audited financial report for this year,
Century Synthetic Fiber will file for the listing of its shares at the HCM
City Stock Exchange sometime in the second quarter of 2015.
The IPO
aims to raise funds for the company's VND729-billion ($34.3-million) factory
expansion plan which began last May at Trang Bang in
The
company also plans to put 50 per cent of the factory's capacity to commercial
use in the third quarter of next year.
According
to Dang Trieu Hoa, chairman of the company's board of directors, Century
Synthetic Fiber had to enhance capacity because of the increasing demand of
its clients, all suppliers of large brands such as Nike, Adidas and Uniqlo,
as well as Zara and The North Face.
From
2008 to 2013, the company's revenues increased by 39 per cent and its
profits, by 65 per cent. It expects the expansion to help increase by about
20 per cent its revenues, to VND2.3 trillion ($108.4 million), and its
profits, to VND132 billion ($6.2 million), in 2016.
In the
first nine months of 2014, its revenues reached more than VND1 trillion
($47.1 million) and its profits, VND82 billion ($3.8 million).
Local
companies focus on brand evaluation
Brand
evaluation is now a top concern of many Vietnamese businesses, especially as
more merger and acquisitions (M&A) occur, Vu Thu Hang, deputy director of
HCM Ctiy branch's Viet Nam Chamber of Commerce and Industry, said at a
seminar held yesterday in
Hang
said analyzing challenges and opportunities would help businesses assess
their brand value in M&A deals and reduce pressure from competitors.
Richard
Moore, chairman and general director of Richard Moore Associates (RMA), said
that local companies' brand value could deteriorate if the firms did not
evaluate the effectiveness of their brands.
Masan
Consumer has acquired Vinacafe Bien Hoa, while Highlands Coffee has bought
the chain Pho 24 for an estimated $20 million.
Many
brand values are assessed at tens of million of dollars, and though asset
value and revenue can be measured, the brands have an invisible value that is
not easily evaluated.
This can
confuse both buyers and sellers when they attempt to assess brand value.
Nguyen
Duc Son, brand strategy director of RMA, said for big brands, the brand value
accounted for 40-60 per cent of the company's value.
He said
that RMA's programme helped assess invisible values of brands, using 11
factors including market, customers, market share, brand culture and brand
recognition.
The
seminar was organised by the Viet Nam Chamber of Commerce and Industry in
collaboration with Richard Moore Associates, LeBros Communications Co. and
Nielsen Viet Nam Market Research.
New
system to heighten safety for depositors
The
Deposit Insurance of Viet Nam (DIV) and FPT Information System Company Ltd.
(FPT IS) yesterday agreed to install a new information and communications
system to tighten security for depositors.
The
agreement that DIV and FPT IS signed forms part of the World Bank's Financial
Sector Modernisation and Information Management System project in
The
project assists the State Bank of Viet Nam (SBV), Credit Information Centre
and DIV in upgrading their main functions to the level of international
standards.
The
agreement, called DG#1, aims to design for the DIV a centralised information
and communications platform connecting to the SBV database. In addition, FPT
IS will develop software programmes for daily activities and a backup centre
to ensure data security and continuous operations for DIV.
DG#1
will be fully implemented 22 months from December. Authorities believe its
success will strengthen the DIV's effectiveness in executing the Law on
Deposit Insurance and protect depositors, especially small ones, when data
from credit institutions, financial markets and SBV operations is captured in
one platform.
As this
centralised core banking system is completed, information will be used to
support policy and supervision functions, as well as meet SBV disclosure
obligations.
DIV
Chairman Nguyen Van Thanh expects the system to transform DIV into an
effective arm of the SBV in dealing with financial turmoil.
According
to Le Manh Hung, director of the SBV information technology department, DG#1
is the World Bank project's last bidding component.
Food
producers urged to add value
Enterprises
in the food industry should focus more on improving production technologies
to create products with added value, delegates said at a conference in
Ta Hoang
Linh, deputy general director of the Viet Nam Trade Promotion Agency, said
The
products not only meet domestic demand but also exports, Linh said, adding
that
However,
export revenue remains low since most products were exported as raw materials
with very little processing.
Dam Ngoc
Nam, deputy head of the Department of Processing and Trade for Agro-forestry-Fisheries
Products and Salt Production, agreed, saying that the deep processing rate in
the cashew sector (salted cashews, fried and spicy cashews, mixed nuts,
cashew confectionery), for instance, is modest, with only 6 per cent.
The
ratio is about 10 per cent for fruits and coffee sectors, he said.
Although
enterprises involved in agricultural, forestry and fisheries production have
invested significantly in modern technologies and equipments, a large number
of firms have not invested in equipment to enhance product value, mostly
because of financial difficulties, he said.
Ly Kim
Chi, chairwoman of Food and Foodstuff Association of HCM City, said local
firms should invest more in upgrading production machinery, strengthen market
research, and diversify products to fit the tastes and habits of each market
and customers.
Building
brands, enhancing trade promotion, and expanding distribution systems to
increase sales both at home and abroad are also very important, she said.
Reindert
Dekker, an expert at the
Convenient
packaging has become a growing trend as consumers' daily schedules have
become busier, he said, adding that the global demand for natural ingredients
would remain strong and not just in traditional markets. Producers need to
pay attention to that, he said.
In
addition, development of support industries to cater to the development of
the processing industry is needed to improve promotions,
Demand
for clean foodstuff and deeply processed products is increasing both at home
and abroad, Chi said.
With the
world population expected to reach 8.2 billion in 2030, it will be a major
challenge to meet food and foodstuff needs.
The
international conference on
Cement
consumption on the rise
In spite
of continuing economic difficulties, cement and clinker consumption next year
will reach roughly 71 million to 73 million tonnes, a four- to seven-per cent
year-on-year increase.
The
Ministry of Construction made this prediction and added that of the total,
about 52 million to 53 million tonnes would be consumed in the domestic
market and the rest would be exported.
Domestic
cement production currently meets demand. The country currently has 74 cement
production lines with a total output of 77 million tonnes per year.
The
ministry has required concerned agencies to scrutinise the investment and
construction process of cement plants. It has also instructed cement
producers to cut costs and streamline their trading networks to boost
consumption.
In the
first 10 months of 2014, cement producers sold 56.54 million tonnes of cement
and clinker, meeting 88.2 per cent of the industry's annual target.
The
ministry estimated total cement consumption this year to reach 68 million
tonnes, a three-per cent year-on-year increase. Of the total, about 49
million tonnes will be consumed in the domestic market.
According
to the Viet Nam Cement Association, cement exports this year could earn as
much as US$1 billion via the export of 20 million to 21 million tonnes of
cement and clinker, a 15-per cent year-on-year increase in value.
Figures
from the General Customs Department showed that the shipment of cement and
clinker increased in both volume and value from January to October this year
to nearly 18 million tonnes.
Tran
Viet Thang, director general of the Viet Nam Cement Industry Corporation
(Vicem), which provides 34 per cent of the cement sector's output, said Vicem
alone exported about 1.8 million tonnes of cement and clinker in the first
three quarters of 2014 and planned to sell one million tonnes more in the
last quarter of the year.
Over 400
businesses will showcase their products at the Viet Nam Expo 2014, which
opens on December 3 in
Participating
firms come from 15 countries and territories:
Electric
machines and equipment, electronics, bicycles and electric bicycles,
exterior, interior and household products will be shown at 450 booths in the
four-day event.
Organised
by the Viet Nam National Trade Fair and Advertising Co (Vinexad), the expo
promotes trade among domestic and international firms, especially those in
the Asian region. The
New
coffee roasting plant opens
Italian
beverage group Massimo Zanetti on Tuesday opened its first coffee roasting
plant in Viet Nam, with its products to hit the market – both domestic and
export – next month.
The US$6
million facility is in the My Phuoc 3 Industrial Zone in the southern
It will
produce various kinds of roasted coffee. In deference to traditional blends,
it will roast Segafredo coffee for the Asian market.
"For
the group, the inauguration of this new plant represents an important step on
our path in the Asian market," Massimo Zanetti, the group's chairman,
said. "With the production capacity of this new plant, we will be able
to support our growth in these high-potential markets, where by 2017 we
estimate growth rates of between 6 and 15 per cent."
Massimo
Zanetti Beverage Group was the world's first private group in the coffee
market, and its international brands include Segafredo Zanetti, Chock full
o'Nuts,
Sharp
rise in Visa transactions
Visa's
online transactions increased by 52 per cent year-on-year in the nine-month
period between September 2013 and June this year, with online shoppers using
their Visa debit cards more than ever to make purchases, said a company
official.
"We
have seen 19 per cent of our payment volume from Vietnamese cardholders
coming from e-commerce in the period," Sean Preston, Visa's country
manager for
Debit
cards accounted for 39 percent of Visa's online transactions in
HDBank
is best cash manager
Housing
Development Bank (HDBank) has been named ‘The Best Local Cash Management
Bank' for the fourth consecutive year by financial magazine Euromoney.
HDBank
won this award thanks to its creative cash management solutions, best
liquidity management solutions, payables and receivables, outstanding
business strategies, best capacity online technology, and after-sales
service.
In
September HDBank had won a similar award from Asiamoney magazine, a leading
Asian finance magazine, this time for the third consecutive year.
Can
Tho to boost trade promotions
The Cuu
Long (Mekong) Delta city of
The
province will boost trade promotion with
Italian
investors keen to invest in industrial parks
Italian
enterprises are particularly interested in pouring money into projects at
industrial parks in
Italian
investors are keen on various fields from engineering, energy, infrastructure
and transport to support industry, garment and textile, added Michele D’Ercole.
Additionally,
Italian investors also eye to set up joint ventures with local businesses in
the areas of science and hi-tech manufacturing.
Deputy
Director of the municipal Centre for Trade Promotion and Investment Ho Xuan
Lam said
The city
also encourages businesses to develop new urban and high-tech areas.
Currently
the city is home to 17 industrial parks and processing zones, he noted.
Dong
Nai invites NGO funding for development
The
southern
The news
was announced by the provincial chapter of the Vietnam Union of Friendship
Organisation (VUFO) during a conference in the locality on November 25.
The
province will offer all possible support for NGOs, including surveys or
administrative procedures support, the chapter said.
Projects
calling for foreign investment are in the fields of sustainable environment
development, healthcare, vocational training and economic development.
The
province is now home to 107 foreign NGOs which are conducting 62 projects and
non-projects worth nearly 20 million USD, including 22 projects and 8 funding
packages recorded last year, notably a project on employment and social
security for people with disabilities by Handicap International, said Vice
Director of the provincial Department of Planning and Investment Pham Minh
Thanh.
Over
1.8 billion USD to expand Duyen Hai power plant
The
Power Generation Company 1 (GENCO 1) under Electricity of Vietnam Group inked
a deal with
Accordingly,
the expansion work will be done by the Japanese corporation under an Engineering,
Procurement and Construction (EPC) contract worth over 891.6 million USD, of
which 85 percent comes from both domestic and foreign commercial loans.
It will
include the construction of a turbine with designed capacity of 660 MW, which
will help the plant, whose construction was kicked off in 2012, generate 3.9
billion kWh.
At the
signing ceremony, GENCO 1 Chairman Nguyen Loan said the Duyen Hai 3 plant
covering an area of over 878 hectares in Dan Thanh commune, Duyen Hai
district, is amongst the 4 thermal power plants with total capacity of 4,200
MW in the Mekong delta
Tsutomu
Akimoto, a representative of Sumitomo Corporation, expressed his confidence
on the firm’s technical reliability, which was attested by the EVN’s first
thermal power plant, the Pha Lai 2 plant, which was built a decade ago and is
operating smoothly.
Construction
of the expanded Duyen Hai 3 plant will start this December with a total
investment of 1.82 billion USD.
It is
expected to be operational from 2018 onwards to help the country solve
electricity shortage for the southern region, particularly during dry
seasons.
Samsung
to make smart TVs at latest $3bn
Smart
TVs are among many electronic devices in addition to mobile phones Samsung is
planning to start producing in a northern Vietnamese province under a fresh
multibillion-dollar investment, the provincial administration has said.
The
South Korean electronics titan is reportedly investing another US$3 billion
in Thai Nguyen, where a $2 billion facility has already been operational
since March.
The Thai
Nguyen administration said last week Samsung’s new investment was still under
consideration, and it could not give any details.
But in a
proposal submitted to the provincial People’s Council early this week,
Samsung’s intentions for its second Thai Nguyen facility have been revealed.
The
document is intended to list the preferential treatments the Thai Nguyen
administration is seeking permission to award to Samsung.
Samsung
is expected to produce not only mobile phones and parts but also make and
assemble laptops, digital cameras, vacuum cleaners, smart TVs, medical
equipment, and other electronic devices at the new facility, according to the
proposal.
A smart
TV, also known as a connected TV or hybrid TV, is a TV with integrated
Internet capabilities or a TV set-top box that offers advanced connectivity
and computing abilities, according to Reuters. Smart TVs allow users to
install and run advanced applications based on specific platforms.
The Thai
Nguyen administration proposes that Samsung enjoy a 10 percent corporate tax
for 30 years, with an exemption for the first four years.
The
proposed preferential treatments also include zero land leasing fees for the
whole life of the project, and a 50 percent reduction in the infrastructure
leasing fee in the
The
province’s administration also sought to reduce the number of required
standards in terms of research and development for Samsung.
Once the
new Samsung facility is commissioned, it will create a ‘miracle’ for the
economic development of Thai Nguyen, as the world’s leading smartphone maker
will attract many suppliers to the province, according to the provincial
administration.
Thai
Nguyen will thus become one of the world’s top technology cities, it said.
The
South Korean firm’s investment in
Samsung
is operating a $2.5 billion complex in Bac Ninh, also a
Samsung
is also poised to build a $1.4 billion consumer electronicsfactory in
If the
70-hectare plant in Thai Nguyen is licensed, Samsung’s total investment in
The
company also signed a memorandum of understanding last month to develop a
$2.5 billion thermal power plant in the north-central
Expert says sugar prices may recover
Global
sugar prices may rise in the coming time, thus leading domestic sugar and
sugarcane prices to edge up, said an expert.
Ha Huu
Phai, a sugar expert, told the Daily that local enterprises have tried to
keep sugarcane prices at high levels but the previous price falls had forced
many farmers to abandon cane cultivation, affecting cane output.
Cane was
purchased from farmers in the 2013-2014 crop at around VND800,000 per ton,
down by VND100,000 per ton compared to the last crop, but this price was
still higher than recommended by the Ministry of Agriculture and Rural
Development.
Slashing
sugarcane to shift to other crops has been seen in some places where farmers
and firms do not have contracts, while some big sugar refineries like Lam Son
and Nuoc Trong have still bought sugarcane at a high VND800,000-900,000 per
ton.
According
to a survey of the Vietnam Sugar and Sugarcane Association, the ratio of
return to cost shrunk from 50.4% in the 2011-2012 crop to 33.4% in the
2012-2013 crop, in which the southeastern region and the Mekong Delta saw a
lower fall from 36.5% to 24%.
Statistics
on the profit ratio of the 2013-2014 crop are not available but input costs
have kept rising while sugarcane selling prices have been in decline.
Therefore, growers in some areas are no longer interested in farming
sugarcane.
However,
Phai predicted sugar prices might increase. “The global sugar production
cycle often lasts five years. Currently, the global sugar price is at the
bottom of the curve and is about to rise,” said Phai.
Several
years ago, the International Sugar Organization forecast that a global sugar
oversupply was 10 million tons, and this figure fell to four million tons in
the 2012-2013 crop. This crop was predicted to have a balance between supply
and demand, but sugar prices remain low due to large inventories.
The
world oil price fall and the
Relief
for software firms
The
Ministry of Information and Communications has issued a new circular making
clear software production activities in a move to remove obstacles faced by
enterprises in the process of implementing the revised Corporate Income Tax
Law.
According
to the revised law, software processing firms can get some incentives such as
a tax rate of 10% for 15 years, tax exemption for four years and tax
reduction of 50% for the following nine years.
However,
software firms said it is difficult to distinguish between software
processing and software services. Therefore, many software outsourcing
companies have not been able to benefit corporate income tax incentives
because, according to provincial authorities, they are deemed as software
services providers.
The new
circular, which will take effect at the beginning of next year, makes clear
the process of manufacturing software products, making it easy to determine
who are software producers and who are software services providers to
facilitate the provision of tax incentives.
The
process of software production consists of seven stages including identifi
cation of requirements, analysis and design, programming and coding, testing,
packaging, installation and transfer, and distribution.
VND3.6
trillion lent to road upgrade project
A
contract was struck in
The
credit is syndicated by Vietcombank, Vietinbank, and LienVietPostBank,
with the first serving as the lead lender.
The
project to upgrade the Hanoi- Bac Giang section of the highway is being
carried out under the build-operate- transfer (BOT) format.
Construction
of this project started on February 22 and is scheduled for completion in
June 2016. When in place, the section would help boost social-economic
development of localities along the road.
Nguyen
My Hao, director of Vietcombank transaction office, said that seeing the eff
ectiveness of the project, the bank has provided funding and other banking
services for investors to finish construction work on schedule.
A
representative of the Ministry of Transport said the road would also meet
transport demand of locals and ease traffic congestion in the area.
In
addition, it will enhance social-economic development as well as defense and
security.
Gov’t okays passenger port on Phu Quoc
The
Government has approved in principle a proposal for developing an
international passenger port on
A
dispatch signed by Deputy Prime Minister Hoang Trung Hai says Kien Giang, the
Ministry of Transport and relevant agencies can proceed with the construction
of an international port on the island, with the provincial government picked
as project owner.
The
province will cooperate with ministries and agencies to decide on the scale
of investment and the amount of State capital. The provincial authorities
suggested at a meeting with the transport ministry last month that 50% of the
VND1.25 trillion cost of the project would come from the State budget.
According
to a design prepared by project consultant Portcoast, the port would consist
of a 400-meter pier with a main section measuring 240 meters in length and 19
meters in width, which allows ships to dock on both sides. A two-storey
terminal covering nearly 4,500 square meters and a 1,020-meter bridge would
be also constructed to serve tourists.
The
consulting firm suggested two phases of development, with the first phase
estimated to cost nearly VND1.1 trillion including VND537 billion for a
breakwater. The province plans to develop the project under the
public-private partnership (PPP) format, and call for Vingroup Joint Stock
Company to participate.
Stricter
requirements for imports from VN
If
Apart
from strict requirements in the
Six
months ago,
Vietnamese
firms should also be aware of
At
present, Chinese customs does not allow containers storing both footwear and
apparel products to enter the country, as the two commodities must be stored
in different containers.
Patil
added that foreign buyers in general have tightened their inspections on seafood
imports, and the only way for Vietnamese firms to cope with such rules is to
study their requirements and set up risk management systems which will check
product quality from the beginning to save time.
The HCMC
Department of Customs had collected VND74.3 trillion in taxes for the State
budget as of November 12, meeting 99.3% of the VND74.8 trillion target set by
authorities.
Speaking
to the Daily, a customs official said the city’s imports this year stood at a
high level, equal to that of last year, thus generating big import duty
revenues. The strong import volume also indicates that business is going well
in the city.
In
addition, the process of debt collections was also conducted smoothly. As of
November 15, the amount earned from tax debts and fines totaled VND819.5
billion, accounting for 86% of the VND952.8 billion target.
The
amount of newly-arising debt is small as enterprises from July 1 last year
had to pay tax before completing customs clearance procedures.
Indovina
Bank introduces IVB-VISA credit card
Marking
the 24th anniversary of its establishment, Indovina Bank (IVB) is scheduled
on November 21 to issue IVB-VISA credit card as part of a plan to expand its
services to domestic individual and corporate clients.
This
credit card is made based on innovative technologies Payment Card Industry
Security Standard (PCI DSS) and 3D-secure service. The first technology
requires issuing banks to keep customer data confidential as regulated by the
VISA card organization while the latter enhances security for clients to make
online payments as it requires cardholders to enter a one-time password for
each transaction.
IVB will
exempt customers from service fee in the first year of card usage. In
addition, the first 200 early birds will be given VND1 million when they make
a successful transaction and the bank will also refund VND100,000 per
transaction to those using the IVB-VISA card to pay for goods and services.
This promotion program starts from November 21 this year to February 21 next
year.
Jan Yei
Fong, general director of Indovina Bank, said the issuance of the IVB-VISA
card is in line with the State Bank of
When it
was established in 1990, Indovina Bank, a joint venture between Vietnam Bank
for Industry and Trade (VietinBank) and Taiwan’s Cathay United Bank, mainly
offered services for foreign-invested enterprises at industrial parks and big
cities in Vietnam. But now it is expanding its services toward local
individual and corporate customers.
Banks
ready to cash in on rising year-end demand
Banks in
HCMC have set aside a combined VND46 trillion to meet the increasing demand
of corporate borrowers for cash to scale up business and production for a
year-end shopping spree.
Lenders
said they see the year-end as a good opportunity to improve sluggish credit
growth. As of the end of October, HCMC-based banks reported credit growth of
7.5% compared to late 2013.
Nguyen
Hoang Minh, deputy director of the central bank’s HCMC branch, said demand
for cash accelerated at the end of the third quarter and early the fourth
quarter as enterprises needed to boost production and business activities for
the year-end sale season.
Banks in
the city added around 1.4 percentage points to credit growth in each of
September and October. Local banks are expected to post a credit expansion
rate of 11% at the end of this year, Minh said.
However,
most banks early this year found it hard to provide loans to customers as
businesses scaled down activities due to the protracted economic malaise.
Despite many measures to inject capital into the economy, the city may miss
the year’s credit growth target of 12%, he added.
But,
local banks still have made around VND46 trillion in loans available for the
year-end business season, up around 10% against 2013.
Phan Huy
Khang, general director of Sacombank, said the bank has slashed short-term
lending rates for enterprises in need of working capital. The lender now
offers annual short-term rates of 7-10% and long-term rates of 10-12%.
Sacombank
hopes that the competitive lending rates will help lure more corporate
borrowers. The lender has reported a credit growth rate of 13% in the year to
date and expects to reach around 14% at the end of this year.
Pham
Linh, deputy general director of VietABank, said credit has picked up
strongly in recent times.
VietABank
currently applies short-term lending rates of around 10% per annum. However,
to attract borrowers, the bank has launched a preferential credit program
with an annual interest rate of 7% for loans with tenors of less than six
months.
With the
credit program, VietABank is pinning high hopes that it will obtain higher
credit growth at the end of this year, Linh said.
An
entrepreneur in the food industry said bank loans have become more accessible
now and many banks have launched preferential loan packages for customers.
However,
the businessman will not take out huge loans for the upcoming sale season
given the current state of the economy.
Ending
October, the nation saw credit rise 8.63% compared to late last year, a
strong improvement compared to the 6.62% recorded on September 22, according
to the State Bank of
Kinh
Do expands to instant noodle sector
Ki Do
Limited Company, an affiliate of local confectionery giant Kinh Do, has
marketed instant noodle products bearing Dai Gia Dinh brand in Vietnam a long
time after the corporation unveiled its ambitious plan to join the food and
flavor sector.
The new
products available in sour and spicy shrimp, sautéed beef and onion, sour
fish soup, crab and pork flavors are sold at around VND3,500 a packet. Kinh
Do said the products are part of its strategy to diversify products to meet
the food needs of local customers and to beef up its business growth.
Last
June, the enterprise revealed a plan to participate in the country’s instant
noodle market via partnership with Saigon Vewong Co. Ltd., which has been
known for its A One instant noodle brand on the local market. Through the
Taiwanese firm, Kinh Do will launch instant noodles and sauces under the
original equipment manufacturer (OEM) form.
Saigon
Vewong has gained much experience in producing instant noodles while Kinh Do
has established a vast network of around 300 distributors and 200,000 retail
points across the country.
Statistics
of the World Instant Noodles Association showed that
At
present, there are many instant noodle producers in
In addition
to instant noodle, Kinh Do also plans to expand operations to the cooking oil
and coffee sectors by acquiring stakes of Vietnam Vegetable Oils Industry
Corporation (Vocarimex) and Phin Deli Company.
Leaders
of Kinh Do have approved a scheme to buy more shares of Vocarimex to raise
its ownership from 24% to 51%. If this scheme progresses smoothly, Kinh Do
will place a big impact on the country’s oil industry as Vocarimex is now a
major player in this sector.
The firm
has yet to detail its investment in the coffee market, but said it would hold
a controlling stake in Phin Deli.
Kinh Do
said confectionery remained its core business and that it is investing
heavily in this sector.
Early
this month, Mondelez International announced a plan to spend US$370 million
acquiring 80% of Kinh Do’s confectionary stake. Kinh Do’s board of directors
is expected to discuss with shareholders about this matter at an
extraordinary shareholders meeting on December 1.
HCMC has
seen its budget use for development investment projects faring more
efficiently as the ratio of the capital the city has had to allocate as
reciprocal capital to these projects has shrunk significantly in recent
years, the Secretary of the HCMC Party Committee said.
Le Thanh
Hai told the closing session of the committee’s 20th meeting on Sunday that
one
Hai said
despite the falling ratio of the city’s budget for development investment
projects, gross domestic product (GDP) has improved. This meant the use of
budget capital has brought about better results as the counter capital has
helped attracted more investments.
In 2011,
the city reported total development investment capital of VND203 trillion out
of VND576 trillion for the GDP in that year, or 35.2% of the GDP. The
proportion is expected to drop to 28.5% this year when the capital is poised
to increase to VND250 trillion out of VND880 trillion for the GDP.
At the
opening day of the meeting last Saturday, HCMC chairman Le Hoang Quan said
that the city aims for increases of 9.5-10% for the GDP and 8-10% for exports
next year. The city targets total development investments to account for 30%
of the GDP and consumer price index (CPI) to be lower than the national
level.
Next
year, the city will continue great efforts to attract investments to
supporting industries, resolve difficulties of the real estate market, and
maintain a fair playfield for enterprises of all economic sectors.
The
local government will also try to make the most of official development
assistance (ODA) loans for development projects, complete important
infrastructure projects, and speed up private investments in environment
projects.
Quan
said the city expected the GDP to near VND879 trillion this year, up 9.5%
against the previous year, and GDP per capita to exceed US$5,100, rising by
13% from 2013.
Hai said
the city will provide small and medium-sized enterprises with incentives and
financial support and boost manpower training in support of supporting
industries next year. The city will also reduce exports of raw materials and
monopoly in supplies of life’s necessities for citizens while combating drug criminals.
VCCI
cooperates with HKVCC
The
Vietnam Chamber of Commerce and Industry (VCCI) last Friday inked a
cooperation agreement with the Hong Kong-Vietnam Chamber of Commerce (HKVCC)
in HCMC.
Speaking
at the signing ceremony, Jonathan Choi, chairman of HKVCC and of Sunwah
Group, said the agreement would help enterprises of
This
cooperation deal will pave the way for setting up a forum for businesses from
both sides to share ideas and explore business opportunities.
Doan Duy
Khuong, vice chairman of VCCI, said HKVCC and authorities in Hong Kong have
coordinated with VCCI to support Vietnamese companies to do business with
Over the
past years, Vietnam-Hong Kong trade ties have been growing. As of October,
bilateral trade reached US$4.96 billion, up 22.68% year-on-year.
Vietnam-Hong
Kong trade involves fabric, garment, textile, footwear, computer, electronic
devices, spare parts, machinery, seafood, timber and timber products.
Hong
Kong had had 853 projects with total investment pledged capital of US$14.1
billion in
In 2015,
the ASEAN-China Free Trade Area will come into force with over 7,000 products
enjoying a tariff of 0%.
Vingroup
gets nod to upgrade routes from Tan Cang to city center
HCMC
authorities have approved in principle a proposal by Vingroup Joint Stock
Company (Vingroup) to build and upgrade some major routes connecting Tan Cang
area in Binh Thanh District with the city center, said a source from the
company.
According
to the source, HCMC Vice Chairman Nguyen Huu Tin last week agreed with
Vingroup’s proposal to build and upgrade those routes with an aim to
completely solve the flood around the area. The routes will also facilitate
the traffic flow to and from a new property complex being developed by the
group in Tan Cang.
In line
with the plan, Vingroup will upgrade
The
project of expanding
The city
government has assigned the Department of Planning and Investment to
cooperate with relevant departments and work with Vingroup to study the
project of upgrading and building routes from Tan Cang to the inner area.
Vingroup
has suggested building and upgrading those routes under the BT (build and
transfer) format.
In July,
the group broke ground for a multi-functional urban area called Vinhomes Tan
Cang at a total cost of VND30 trillion on an area of 43 hectares at the Tan
Cang area.
The
complex includes the 81-storey Landmark tower, which will comprise serviced
apartments and offices for lease.
The
group expects to put high-class villas, schools and a Vinmec hospital of the
complex into operation next year, and the entire complex will be inaugurated
in 2017.
In July
last year, the city authorities appointed Vingroup as investor of the
international finance-banking-trading-services center, covering an area of 17
hectares in Thu Thiem Urban Area. The group is also investor of a
multi-functional trading-services- residential complex on an area of 7.9
hectares in this urban area.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 27 tháng 11, 2014
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