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BUSINESS IN BRIEF 29/1
Sacombank offers soft loans
The Sai Gon Thuong Tin Joint-Stock Commercial Bank (Sacombank)
will offer VND10 trillion (US$470 million) in preferential loans to
individuals, businesses, households and co-operatives in HCM City's 24
districts and many other cities and provinces this year.
The interest rate on the loans will be 6.9 per cent per year.
Last year, Sacombank provided loans worth more than VND4.7
trillion ($223 million) at 7 per cent interest to hundreds of businesses and households
nationwide to help them develop and expand business.
$12m coffee plant opens in Dong Nai
A US$12 million coffee processing plant was opened by the
German group Neumann Gruppe on Monday in the An Phuoc Industrial Zone, Long
Thanh District, southern
Covering an area of 5ha, by 2017, the plant was designed to
process about 26 tonnes of coffee per hour. The product will be exported
worldwide.
The plant is the second backed by Neumann Gruppe in
Vice chairman of the Dong Nai provincial People's Committee,
Nguyen Phu Cuong, said he hoped the plant would help expand coffee growing
areas.
The German group has 46 coffee processing plants in 28
countries. They contribute 10 per cent of global coffee exports.
Agro, forestry, seafood exports down
Of this figure, the farming industry's export value reached
$859 million, down 11.8 per cent, while exports of seafood saw a decrease of
25.6 per cent to $412 million and forestry product exports generated $520
million, down 8.2 per cent.
Nguyen Thai Phuong from the Viet Nam Seafood Exporters and
Producers (VASEP)'s information centre said the reduction in the seafood
export value in January was normal because importers around the world were
quick to promote imports of seafood from Viet Nam at the end of 2014 for the
Christmas and New Year festivals, but demand had slowed in early 2015.
As usual, seafood exports by
The association expects
To remain a key seafood export market this year, the fisheries
industry would have to restructure its operations and focus on exporting
seafood products to other potential markets, such as ASEAN,
Export items that have reported an increase include tea,
cashew nuts, cassava and cassava products.
In January,
Meanwhile, cashew nuts earned $29 million from the 18,000
tonnes exported, representing a respective year-on-year growth of 16 per cent
and 20 per cent.
However, rice exports generated $152 million, showing a
year-on-year decrease of 12.7 per cent for a volume of 312,000 tonnes, down
14.5 per cent.
Coffee exports were pegged at $202 million, down 23.6 per cent
in the reviewed period.
Collect $2.4b in arrears, Gov't told
The Inspectorate last year proposed that the Government
reclaims VND51.5 trillion (US$2.4 billion) owed to the State Budget by
companies and individuals committing various violations including
over-invoicing and other forms of corruption.
The figure was an increase of 104 per cent over 2013, said
Tran Duc Luong, deputy general of the Inspectorate.
The Inspectorate had also suggested that the Government takes
back 1,682.6ha of land.
Reviewing his agency's 2014 performance, Luong said at a press
briefing last weekend that they had issued fines of VND3.28 trillion ($156
million), proposed that the Government disciplines more than 2,000
organisations and 15,400 individuals and asked the police to investigate 55
cases.
He said that the Inspectorate conducted more than 7,000
administrative inspections and more than 233,800 non-administrative
inspections last year, and most of the violations it found were in the
economic, banking and finance sectors.
The agency also inspected ministries and their branches and
units, checked the use of land resources and construction activities by
provincial authorities and followed up on complaints and denunciations
received.
Luong said that various Government agencies received
denunciations and complaints from about 392,600 people, an increase of 3.2
per cent over 2013. Of this number, 12 ministries and 61 provincial
administrations received petitions from about 87,000 citizens, he added.
The Government agencies resolved 85.9 per cent of 42,783 cases
arising out of these petitions, reclaimed VND41 billion ($1.9 million) and
182.7ha. They returned VND198.8 billion ($9.46 million) and 85.3ha of land to
the people.
The agencies proposed fines on 552 individuals and sent 39
cases to the police for criminal investigation.
In following up on denunciations received, the Inspectorate
found 108 individuals involved in corruption and proposed reclamation of
VND13.8 billion ($657,000). It also suggested that 25 individuals in these
cases be investigated by the police.
Luong said that the Inspectorate will conduct five major inspections
in the first quarter of this year: restructuring and capital management at
the Vietnam National Coal-Mineral Industries Group (Vincomin) and the Vietnam
National Textile and Garment Group (Vinatex); procurement and credit
acitivities at the Mekong Housing Bank; implementation of the 2011-2015
Project for Consolidation and Development of Boarding Schools for Ethnic
Minority Secondary School Students; and management and use of medical
facilities and equipment.
The agency will also conduct 25 other inspections on several
issues including the restructuring and equitisation of national enterprises
under the Defense Ministry; and the construction of indoor sports stadiums in
various provinces.
Ride economic recovery to market success, SMEs urged
Small and medium–sized enterprises (SMEs) have been urged to
improve their competitiveness amid rapid global integration, to grab
opportunities as signs of economic recovery are already emerging in 2015.
Bui Thu Thuy, deputy director of the Agency for Enterprise
Development under the planning and investment ministry, said at a conference
held by the Viet Nam Chamber of Commerce and Industry yesterday that SMEs
would continue to struggle this year, despite their large contribution of 50
per cent of the GDP.
Thuy pointed out that SMEs were encountering problems of
credit difficulties, small capital scales, outdated technologies and weak
management capacity, despite their large contribution to the economy in the
2009-12 period.
She said that most domestic firms were of small scale, while
pointing out that medium-sized enterprises in the private sector account for
just 1.6 per cent. In addition, SMEs failed to keep pace with technological
innovations, while the government's support remained limited.
She added that enterprises should also improve technologies
and boost technology transfer to enhance quality, productivity and
competitiveness, coupled with the government's support to encourage SMEs to
participate in the supply chain.
The restructuring of the financial market, simplification of
procedures and provision of preferential loans were also important measures
to improve businesses' access to capital, Thuy said.
Vo Tri Thanh, deputy director of the Central Institute of
Economic Management, said at the conference that the contribution of SMEs to
the GDP of Viet Nam was lower than in several countries, while the advantages
of participating in the global value chain remained limited due to
low-quality technology and management capacity.
Thanh added that inflation was expected to be low this year,
but difficulties remained and competition would intensify, especially with
the formation of the Asean Economic Community, which would bring
opportunities. However, in the long term, it would be critical for businesses
to enhance their renovation capacity and competitiveness to seek higher added
value.
At the conference, Nguyen Thi Thu Trang, director of the
VCCI's WTO Centre, said that 2015 would be a year of preparation for new
policies and a new stage of integration, with the negotiations for the
new-generation free trade agreements (FTAs) to be concluded and signed.
Enterprises must understand clearly the opportunities as well
as challenges arising from these FTAs in order to outline their strategies,
Trang said.
Hai Duong IZs attract $122m in foreign direct investment
The
According to the Municipal IZs Authority, over $41.55 million
of the total FDI has been invested by five newly-licensed projects, while the
remainder of the capital is from three projects operating with growing levels
of capital.
These projects include a $27 million plant on animal breed
production, financed by Malaysia's Leong Hup Feedmill Viet Nam Co, and South
Korea's Kefico Viet Nam Co's existing factory on manufacturing automotive
components, which has raised capital by $65 million.
The Head of the Authority Pham Minh Phuong told Viet Nam News
that with the newly added capital, the operating projects nearly doubled in
size. This was a good signal, and reflected that the IZs-located enterprises
experienced efficient business performances, while also proving their growing
trust for the provincial investment climate.
Over the past few years, besides applying the
"one-stop-shop" policy to attract more investment, the province
also organised numerous direct dialogues with investors to resolve their
obstacles in a timely fashion, Phuong noted.
Thanks to these efforts, Hai Duong had attracted 20 new
foreign-invested projects to its IZs last year, capitalised approximately
$336 million, while allowing 18 other projects to raise capital by $142
million, the authority's report revealed.
By the end of 2014, the provincial IZs had 149
foreign-invested projects, with capital totalling more than $3.02 billion. Of
these projects, 144 have become operational.
Speaking at the licence granting ceremony on Sunday, the
Chairman of the provincial People's Committee Nguyen Manh Hien, pledged that
local authorities would always create favourable conditions for investors,
including those from foreign countries, and help them implement their
projects in the locality.
This year, the province has set the goal of attracting an
additional FDI of $235 million for its IZs.
FPT Software targets $1b in 2015 revenue
FPT Software aims to earn US$1 billion in revenue, employ
30,000 workers, and join more software outsourcing markets in 2015.
The firm will boost development strategies in main markets,
such as develop solutions and services based on modern technology in the
Nguyen Thanh Lam, general director of the firm, said this on
January 24 in Ha Noi, at a conference to summarise the company's activities
in 2014.
Lam pointed out that in the period 2004-2013, FPT Software's
average growth rates in revenue and human resources were 49 per cent and 43
per cent respectively.
In 2013, its revenue rose to a record $100 million, and the
enterprise aimed to earn $130 million and have 6,500 employees in the
following year. In fact, its revenue increased by 35 per cent to touch $138
million in 2014. The firm had more than 7,000 employees, with nearly 1,000
people working in its 19 offices in nine countries.
FPT Software also won bids in important markets such as the
In 2014 alone, the American market brought nearly $40 million
for FPT Software, with a growth rate of 39 per cent. Its revenue in the
European Union reached nearly $20 million, with a significant growth rate of
117 per cent.
Lower priced foreign beef has caused imports to surge 65%
on-year to 87,300 tonnes for the ten months leading up to February 2015,
according to the Ministry of Agriculture and Rural Development (MARD)
Department of Livestock Production.
In the month of January alone, the country has imported more
than 2,350 tonnes of meat valued at US$4.6 million, principally from the
A representative from the department said that with advantages
of quality and price, foreign meat is slowly overwhelming the domestic market
adding that the price of domestic chicken is higher as well.
In the southern region, domestic chicken prices have been
hovering around VND40,000-45,000 per kilogram, more expensive than imported
fowl, which has been selling for VND35,000 per kilogram.
Work begins on RoK-funded project
Construction work on a Republic of Korea-invested garment
factory kicked off on January 25 in the Mekong Delta
The US$5 million factory invested by Korean Pinetree Company
is expected to enter operation in June with 2,000 local employees.
Provincial People’s Committee Vice Chairman Le Minh Chien
pledged the best possible conditions for effective implementation of the
project.
He also asked local authorities and constructors to keep the
rate of construction progress on schedule and ensure its safety and quality.
Bac Lieu’s economic structure has been transformed towards
higher proportions of industry and service sector.
The industry-construction sector currently contributes 24.71%
to the locality’s total GDP, while services constitute 25.59% and agriculture
49.70%.
Trade deficit hits US$522 million in first half of January
However, comparing with the second half of December 2014, the
trade balance registered a deficit of US$522 million, accounting for more
than 9% of total exports revenue.
Products saw decline in export growth including means of
transport, tools, seafood, crude oil, rice and petroleum. Meanwhile some
products enjoying high export growth were telephones and components,
computers, electronics and components and footwear.
Foreign direct investment (FDI) businesses fetched US$3.92
billion from exports, an increase of 3.8% against the same period last year
and accounting for 68% of total export revenue.
Korean business invests in high-quality rice production
A Korean business has decided to invest VND20 billion in the
development of a high-quality rice cultivation area in the southwestern
A memorandum of understanding (MoU) was signed on January 22
by Vietnam Moc Bai joint stock company under the
Accordingly, the fund will be used to build dykes, irrigation
system and procure machines and equipment.
Tay Ninh province will spend more than VND6.4 billion on
building a storage area and a bomb and mine clearance project.
DARD Vice Director Nguyen Thai Son said experts and
technicians will help farmers develop a modern rice cultivation model to
bring about highest efficiency.
In 2010 Taekwang Group invested in building a Nike sports
shoes factory in Moc Bai Economic Zone in Tay Ninh province with an annual
capacity of 10 million pairs of shoes and has employed 15,000 local workers.
It is also building a 100ha garment industrial zone and plans
to develop a hi-tech vegetable cultivation zone on 20ha in Phuoc Ninh
commune, Duong Minh Chau district.
Tet gifts hit markets across HCM City
Supermarkets, markets and shops in
Saigon Co.op, which runs Co.opmart supermarkets, is offering
hundreds of varieties of hampers at prices ranging from 59,900 VND to 1.7
million VND (nearly 80 USD).
For the first time it has launched a free gift delivery
services to receivers in any province and city where its stores are located
under its "Tet Viet gan ket moi nha" (Vietnamese Tet connects every
home) programme.
The Republic of Korea (RoK) supermarket chain Lotte Mart has
gift baskets at prices ranging from 99,000 VND to 4 million VND (187 USD).
French supermarket Big C is offering gift baskets and boxes
priced at 59,900 VND-1.7 million VND.
Traders at traditional markets like Tan Dinh, Thi Nghe, and Ba
Chieu also have various kinds of Tet gifts. Nguyen Thu Van of Thi Nghe market
expected sales to increase strongly from the middle of the 12 th lunar month
which falls on February 3.
All of them mainly contain confectionery, tea, coffee, water
melon seeds, wine, seasoning, and cooking oil.
It has also targeted 34.95 billion USD from exports, an 8-10
percent increase over last year, Le Van Khoa, Director of the department,
told a recent review meeting.
Exports, excluding crude oil, were worth 27.89 billion USD
last year, a year-on-year increase of 12 percent, with shipments of
industrial and processed goods increasing significantly from previous years,
he said.
The city will strive to ensure balanced trade and prevent
indiscriminate imports, especially of luxury goods. It will take measures to
ensure inflation is lower than the national figure and to speed up the
restructuring of the industrial sector so that it can play a greater role in
the global value chain, Khoa said.
Amending zoning plans so that industrial parks, processing
zones and industrial clusters specialise in certain industries, upgrading
traditional markets, ensuring supply and demand are matched and strengthening
market oversight is also on the cards for this year, he said.
The city will undertake programmes to resolve difficulties
faced by companies and help them sell more in both domestic and foreign
markets.
There will be focus on developing support industries to
increase local content in industrial products,” he said.
Deputy Minister of Industry and Trade Do Thang Hai hailed the
efforts made by the city's industrial and retail sectors last year, urging
the city to implement measures to help businesses expand investment and trade
and integrate more into the global economy.
He also suggested that it should improve the efficiency of its
programmes like price stabilisation and Vietnamese people prioritise using
made-in
Germany inaugurates coffee processing plant in Dong Nai
A 12 million USD coffee processing plant was officially
launched by the German group Neumann Gruppe on January 26 in the An Phuoc
Industrial Zone, Long Thanh district, southern Dong Nai province.
Covering an area of 5ha, the plant is designed to process
around 26 tonnes of coffee per hour or 100,000 tonnes per year by 2017 with
finished coffee to be shipped worldwide.
The newly-built plant is the second of its kind invested by
Neumann Gruppe in
Vice Chairman of the Dong Nai provincial People’s Committee
Nguyen Phu Cuong expressed his hope the plant will help expand local coffee
growing areas, and vowed to facilitate the company’s operation.
The German group currently has 46 coffee processing plants in
28 countries around the world which contribute to 10 percent of global coffee
exports.
Second-home segment bouncing back
The second-home market is becoming livelier as the property
market emerges from a long slump.
Dau Tu newspaper reported that the Vinh Thien Duong Company is
wrapping up preparations for its 300 million VND Alma resort in Cam Ranh,
comprising of 200 villas and 400 apartments meant as holiday homes.
Russian firm State Development is building the Cam Ranh
Flowers Resort in the same town with villas, bungalows and apartments, and is
scheduled to complete it in the first quarter of 2016.
In nearby Nha Trang, Hoan Cau Group, the developer of the
4-billion-VND Diamond
The company's Business and Marketing Director Tran Ngoc Nhat
hoped that the first 200 apartments on offer will soon find buyers since Nha
Trang is a favourite destination for both Vietnamese and foreign tourists.
Meanwhile,
FLC expects to turn the coastal
Ian Fleming, general director of FLC Samson Golf Links, told
Dau Tu newspaper that international coastal golf and resort properties have
yet to be developed in the north of
In Phu Yen, the Rose Rock Group, founded by members of the
Matthew Powell, the
Other second-home projects are under development not only in
popular places like Phan Thiet,
The segment is no longer only for the wealthy. VinaLingving,
for instance, recently launched its golf course villas, the latest offering
at its 260ha Danang Beach Resort project, at a price of 5.5 billion VND for a
250sq.m (250,000 USD) unit.
The price goes down to 2.6 billion VND for a commercial
front-street house in the Little Vietnam project in Quang Ninh province.
Powell said his company has received positive feedback from
buyers.-
Vietjet Air expands its presence
The low-cost carrier Vietjet Air has created flying
opportunities for millions of residents, over 30 percent of which chose
Vietjet Air for their first flight experience, said Vietjet Managing Director
Luu Duc Khanh at the 2014 review conference held in Ho Chi Minh City on
January 25.
He added that in 2015, Vietjet Air looks to foster sustainable
development in the domestic market and conduct efficient joint ventures
overseas.
Speaking at the event, Deputy Minister of Transport Nguyen Van
The said VietJet’s development manifested the fact that Vietnamese aviation
is an open market and Vietnamese investors are also reaching outside the
country to popularise the nation’s image in foreign markets.
In 2014, 5.6 million passengers travelled with Vietjet Air,
generating total revenue of 8.1 trillion VND (380 million USD).
Vietjet Air is currently operating 150 flights per day with 28
air routes, covering domestic destinations as well as a number of
international flights to
In a bid to increase its domestic and international presence,
VietJet Air plans to add 100 new aircraft to its fleet.
Experts believe in SBV's effort to keep forex rate under 2 pct
Experts said the State Bank of Vietnam (SBV) will succeed in
keeping the VND-USD exchange rate from fluctuating to below 2 percent this
year.
Some have been concerned that the continuing sharp fall in
prices of oil, which is one of
However, Deputy Director of the Central Institute for Economic
Management Vo Tri Thanh said at a recent conference that the SBV will
successfully keep the foreign exchange rate from fluctuating to below 2
percent, owing to supply and demand of the country's foreign currency
sources, as well as the central bank's competence in successfully managing
the forex market for the past few years.
He added that Vietnam's foreign currency reserves have
currently hit a record high of roughly 35 to 38 billion USD, while balance of
payments this year are forecast to have reported a surplus of roughly 7 to 8
billion USD.
However, Thanh noted that it will be important to see how the
central bank adjusts the rate to stabilise the forex market, while avoiding
negatively affecting other indices.
The Bao Viet Securities Co. (BVSC) also forecast that the
forex market will remain stable in 2015 as well. The company anticipates the
exchange rate of the dong against the dollar to vary between 21,600 VND and
21,800 VND till the end of this year.
The forex market will still experience ‘rising waves.'
However, the central bank will successfully intervene to keep the exchange rate
fluctuation within the set target.
Trust in the SBV’s successful policies formulated over the
last two years has also helped the central bank execute its policies more
effectively, BVSC said.
However, BVSC said the central bank could consider the devaluation
of the dong against the dollar and implement the devaluation with a certain
timeline, in a bid to boost the competitiveness of Vietnamese exports.
Steelmakers’ inspired performance in 2014
Major businesses in the domestic steel industry have reported
upbeat business results in 2014 thanks to well-conceived investments and
strong restructuring efforts.
Leading private steel maker Hoa Phat Group (HPG) in its
recently published 2014 annual report attests to a VND 3.2 trillion ($149
million) post-tax profit, topping early projections by as much as VND1
trillion ($46.7 million).
While metallurgy remained the leading segment of the HPG
profile, contributing around 80 per cent to company revenue, other segments,
such as home interior design and electro-cryogenics, have also been growing
at a stable pace.
HPG’s general director Tran Tuan Duong has attributed the
company’s stellar performance in 2014 to the tactic of ‘temporarily reducing
self-extraction and taking advantage of low-cost imported ores and ores from
local sources amid a nosedive in global ore prices which is forecast to
continue this year’.
At present, 30-40 per cent of the total ore volume processed
at the HPG steel and ore complex based in the
As global ore prices are forecast to dive further in the
upcoming time, the company envisages increasing import volumes, mainly from
“Despite the sharply growing competition pressuring the steel
industry, Hoa Phat is confident to stay ahead of the competition, find the
right markets and solutions for itself and capitalise on our present
technology, management expertise as well as well-established value chains,” said
Duong.
In its core field of steel production, HPG has set a record of
selling more than one million tonnes of structural steel last year and is set
to boost its sales volume by 20 per cent this year.
According to Duong, HPG is concentrating efforts to put its
third kiln in operation in the first quarter of 2016.
Upon the 2016 completion of the third investment phase of the
company’s steel complex, HPG is set to pass the two million tonnes margin in
steel production capacity, further cementing its position as
Apart from being a fruitful year to HPG, last year also marked
sweeping changes at the leading state-owned steelmaker, Vietnam Steel
Corporation (VNSteel).
After changing general director in April 2014 and embarking on
a course of strong shake-up measures, its longstanding loss-making status was
halted.
In particular, the company raked in more than VND70 billion
($3.2 million) in profits, more than double the target set in early 2014.
These figures look even more impressive within the context of
VNSteel performance in 2012-2013, when the company’s cumulative losses
surpassed VND800 billion ($37 million).
VNSteel’s member units posted VND151 billion ($7.05 million)
in profits last year against the VND264 billion ($12.3 million) losses in
2013, whereas its affiliates registered VND696 billion ($32.5 million) in
profits last year.
At the Thai Nguyen Iron and Steel Corporation (Tisco), another
major player 65 per cent of whose chartered capital is owned by VNSteel, has
managed to pay dividends due to strong restructuring measures.
Tisco’s average production costs were lowered by VND1 million
($46) per tonne in the second half of last year thanks to rigorous
application of cost-saving measures.
Tisco reaped VND89 billion ($4 million) in profits last year
while having to report more than VND290 billion ($13.5 million) in
consolidated losses in 2013.
This year, Tisco has set out to implement a wide range of
measures, including installing technical innovations to further save costs and
boost labour efficiency.
Becamex IDC flat owners get ownership certificates
The Investment and Industrial Development Corporation (Becamex
IDC) issued 200 social housing ownership certificates to owners of flats in
the corporation's social housing project in the
The flats are located in the
This is the first time that Becamex IDC issued such
certificates to its customers. The construction corporation will continue to
grant such certificates to more customers of the corporation's social housing
projects in the province.
Becamex's scheme to build social housing for residents in the
The corporation's projects cover a total area of 240 hectares
in
The total investment for the social housing projects is
estimated to be VND10.830 trillion or roughly US$510 million.
So far, Becamex IDC has built 5,000 flats in
The corporation also plans to build another 10,000 flats
spread over 30 to 54 sq.m each, in the Viet Sing residential area of the Thuan
An Township, and in Thu Dau Mot City's Dinh Hoa social housing project.
Customers of Becamex' social housing project are considered
for favourable loan packages, worth VND30 trillion ($1.4 billion), which are
extended by the Government.
Persons with an urgent need for accommodation, including civil
and military officers, workers, students, and low income earners and
resettled residents, are considered potential customers of Becamex.
Enterprises, which have demanded accommodation for their
workers, are also target customers of the corporation's projects in the
province.
Developers take a chance on depressed assets
Homebuyers in the
Opposite the project, three buildings at the Duong Noi New
Urban Area developed by Nam Cuong Group also remain abandoned at the
foundation stage.
However, Pham Thanh Hung, chairman of Cen Invest and his
partners claim they now have the finances to restart these long-abandoned
developments.
Hung and his partners have signed a deal with Nam Cuong Group
to take over the three buildings in the Duong Noi New Urban Area which
includes 630 apartments. Cen Invest has poured around VND250 billion ($11.9
million) into the project.
“These delayed projects are an inevitable consequence of an
over-heated property market. Several of these mothballed developments are
just waiting for finance to restart,” Hung said.
“The real estate market has really recovered and now it’ll be
about those developers who have vision,” Hung said.
Hung claimed that the sale of more than 10,000 apartment units
in the capital last year was a good indicator for the real estate market, and
warned that if the current rate of sales continued the city would face a
shortfall in available properties.
Hung is also chairman of the Cen Group, which operates the
STDA real estate transaction floor, and last year STDA sold more than 3,100
apartments in
Figures from CBRE Vietnam show that there was a 50 per cent
increase in apartments sold in the capital compared to 2013.
“The positive results in the apartment segment have encouraged
investors to pour capital into property development. In our newly taken over
project, we will focus on reasonable scale units at VND19 to 21 million ($904
to $1,000) per square metre,” Hung said.
Hung’s positive outlook has been shared by other developers
such as Vingroup, Novaland and TNR Holdings.
Doan Van Binh, chairman of the CEO Group said however, that
opportunities will not be available for all people and all segments.
Binh said that while apartments for sale were booming, other
segments such as office for lease and retail were still facing challenges.
“Moreover, despite the apartment for sale segment seeing
positive signs, the west of Hanoi is facing oversupply of high-end
apartments, so we’re holding off on our plans to venture into this segment at
the moment,” Binh said.
CEO Group however has decided to invest VND1 trillion ($47.6
million) into real estate development this year with a small amount spending
on the construction of amenities at the Sunny Garden City in Hanoi and
Riversilk City in Ha Nam province and a majority of the investment in Novotel
Phu Quoc Resort.
CEO is currently constructing Novotel Phu Quoc with 400 rooms
and 44 villas for lease, with the project expected to be finished by the end
of 2015.
“I want to focus on Novotel Phu Quoc, rather than other
projects, because we see very bright prospects for the island in the coming
time. The island’s infrastructure has recently been upgraded with a new
airport and tourism growth has been good. Phu Quoc now has the highest hotel
room rates in the country,” Binh said.
“However, the opportunity won’t be around for ever. People are
keen to get into the island and the early bird gets the worm,” Binh said.
He added that the company had contracted Accor Group to
operate the resort with the aim to attract more European tourists whom other
properties on the island did not focus on now.
Improved services promote projects in the east of Hanoi
Properties located across the Red River in
Developments include Garden City, Berriver Long Bien, Vinhomes
Riverside Hanoi,
Located only some kilometres from the centre of
Real estate expert Dang Hung Vo said that the area had managed
to maintain its more rustic characteristics compared to other parts of
“Moreover, the east can be developed much more easily than the
rest of the city as it’s on higher ground,” Vo said.
The east of
According to Le Ngoc Quynh, director of the Nha Dat 24
Transaction Centre, sales of houses in the east of
In
Invested by giant property developer Vingroup, Vinhomes
Riverside covers 183 hectares, and is being marketed as a new high-end
residential area.
Hanoi Garden City developed by Malaysian backed Berjaya will
be complete this year. The first phase of this project was finished with 148
apartments in 2012 and its second phase with 103 villas is nearing
completion.
Other developments include Sai Dong new residential area over
42 hectares, Viet Hung with 302 hectares and Dang Xa with 30 hectares.
Apart from new residential areas, a range of other facilities
are nearing completion, such as the Aeon Mall Him Lam. Located in Long Bien
district, it is the Japanese developer’s first retail outlet in the north.
Started in April 2014, the $200 million complex is earmarked for a late 2015
opening.
Located opposite Aeon, the 27-hole Long Bien golf course
recently entered operation. These projects are now benefiting from better
public facilities such as school, hospitals, trading and entertainment
centres, which have made them more attractive and realistic propositions for
home owners.
According to quarterly report from CBRE Vietnam, Gia Lam has
dramatically benefited from improved public infrastructure with completed
bridges and proposed metro-lines, boosting property prices by 2 to 9 per cent
on-year.
Infrastructure to change Thu Thiem landscape
Thu Thiem New Urban Area, one of the biggest urban development
areas in
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate
Association, said Thu Thiem remained largely unattractive to foreign
developers due to the largely non-existent infrastructure.
“Infrastructure is obviously needed to attract investors,”
Chau said.
Twenty years have passed since Thu Thiem New Urban Area
received prime ministerial approval, but while the site is beginning to see
large developments, its infrastructure has been largely ignored.
In addition to Thu Thiem Bridge 1 and the tunnel under the
Saigon River which have connected the area with the centre of Ho Chi Minh
City, the municipal People’s Committee last month agreed a build-transfer
(BT) contract with an investor for constructing four roads and 12 bridges in
the Thu Thiem New Urban Area in District 2 worth $569.4 million.
The four roads will be constructed by Dai Quang Minh Real
Estate Investment Joint Stock Company.
Upon completion, these routes will play a significant role in
the development of the new urban area, linking it with
In addition, the city authorities and the company also signed
another BT contract for a 9-hectare central square and a 20-hectare riverside
park. Local authorities are also planning to build a second bridge to Thu
Thiem connected to
However, Chau warned that due to the scale of this area, only
major investors were in the running for the work.
According to the Thu Thiem Management Board, more than 10
projects have kicked off work in the area.
Dai Quang Minh Real Estate Investment Joint Stock Company is
building a 37-hectare residential area featuring houses, apartments, school,
park and cultural centre. Meanwhile Duc Khai Joint Stock Company has planned
to build the Binh Khanh Residential Area over 39 hectares consisting of
various apartment blocks varying from 3 to 25 storeys.
After completion, these two projects will serve as examples
for other investors to follow.
Vingroup was also chosen to develop an international shopping,
finance and housing development in Thu Thiem.
It will also be in charge of developing a shopping and housing
area over 79 hectares on
Foreign investors have also started work in Thu Thiem, with
Imperia sets sights on Hanoi
HBI Joint Stock Company – the developer of Imperia An Phu in
Located on a 42 hectare site in Thanh Xuan district,
It is adjacent to the ring road, and the elevated railway
system which is currently under construction. This offers convenient access
to the city centre and other new urban development areas. Other on-site
facilities include a four-season swimming pool, healthcare services, a beauty
spa, a gym, a supermarket and intelligent parking services. Ranging from 65 to
174 square metres, each apartment is designed according to modern and
eco-friendly standards.
The import turnover of phones and accessories reached US$8.47
billion in 2014, an increase of 5.32 percent over the previous year.
This group of commodity was ranked fourth in the top ten items
that were most imported to
Input materials for domestic phone production depended on
import.
The second largest exporter to
The import turnover from
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 28 tháng 1, 2015
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