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BUSINESS IN BRIEF 24/2
Lower oil prices, interest rates should improve spending: CBRE
A stable economy is having a positive effect on consumer
confidence and this together with lower oil prices and interest rates should
cause spending to improve this year, Richard Leech, Executive Director of
CBRE Vietnam, has forecast.
He said lower oil prices result in lower transport costs and
thus lower prices of goods.
Retail sales and services last year were worth around US$140
billion, but growth had slowed significantly over the last few years,
according to the Retail Market Update report CBRE released.
The update reviews the past 12 months and forecasts trends for
2015.
Supply of retail space has grown in both the major markets of
In terms of the number of projects and square metres in the
pipeline,
Apart from having more supply of formal retail space than
New supply that came on line in 2014 was dominated by Lotte in
the north and by Aeon in the south. Both these retail giants, respectively
from the
Leech noted that
"With the completion of The One, Sai Gon Centre Phase 2
and the
The development of new shopping centres has resulted in an
influx of new tenants to
Apart from the aggressive expansion plans by foreign and local
retailers in
The emergence of new bazaars containing hundreds of small
kiosks, rent-free shopping malls such as
Food and beverage outlets were the standout sector in 2014 and
will continue to dominate the high streets.
CBRE said that nearly 50 percent of its enquiries for retail
space were in this sector and that the enquiries were more likely to be for
fast casual dining rather than high-end dining.
"The F&B sector is leading the charge in terms of
occupying ‘unconventional' retail space, and grouping together in specific
nodes such as West Lake in Hanoi and Crescent Lake in HCM City" Leech
explained.
Competition for a share of the consumers' wallet is fierce
while consumers are now more sophisticated and knowledgeable and place value
on an overall retail experience when shopping, Leech explained.
Shopping centre managers will need to have a good
understanding of what their customers want, leverage the data they can
collect from smart phone applications and digital marketing, provide more and
better quality entertainment facilities and collaborate more with retailers,
CBRE said.-
Businesses lack information about AEC
The establishment of the ASEAN Economic Community (AEC) late
this year will help Vietnamese businesses expand trade exchange, attract
investment, speed up exports and approach larger markets.
Meanwhile, they will have to compete fiercely with rivals from
ASEAN and ASEAN plus like the
It is because they have less access to information about the
regional economic than that of WTO and free trade agreements. Besides, local
businesses just place emphasis on their traditional markets.
Rector of the Economics College under VIetnam National University,
Hanoi Assoc. Prof. Dr. Nguyen Hong Son said upon joining AEC, the Government,
businesses and associations should closely work together to grasp
opportunities and overcome challenges.
Retailers’ holiday hopes up after busy six weeks
A busy six weeks in the lead up to the Lunar New Year (TET) has
buoyed retailers' hopes that the holiday shopping season will end strong
after a solid start to overseas sales.
Orders from Overseas Vietnamese (OVs) have really jumped this
year said Dong Nai, the owner of Tran Gia Company in Bien Hoa City adding
that the company has had to step up production of Chung cakes, Tet cakes,
and marmalades to meet the increased demand.
The owner of Tran Thanh Toan Company in turn said it has
shipped over 60 tonnes of Chung cakes and other traditional holiday
specialties like Dong leafs, sticky rice and spices to 10 countries.
In fact, Toan said that business has been so brisk the company
hasn’t been able to fill all of the orders for Chung cakes. Most orders have
come from OVs in the
Phan Quoc
We shipped right at 20 tonnes of Tet cakes, frozen bulbs and
potatoes to North Europe and
A lot of work goes into preparing product for shipment Nam
said adding that because of the lengthy transport time the cakes need to be
packaged carefully and all the production processes must be meticulously
monitored.
In particular, the EU food hygiene and safety import
restrictions are very stringent
Meanwhile the owner of a Tet and coconut cake unit in Chau
Thanh district, Ben Tre province said his company has just received 20-30
foreign orders with sizes ranging from 10,000-30,000 cakes.
Tran Thanh Phu owner of Tan Dong Company in Thu Duc district,
Tri Duc Food Company said it exported around 20 tonnes of
gingersnap, bamboo shoot, sweet potato, and potato marmalades to the
Vice Director of Hoang Mai Tea Company Pham Thu Nga said this
year his company successfully shipped 20 tonnes of fungi, vermicelli and rice
sheet abroad on the occasion of the TET holidays.
Vinamit Company has completed contracts to ship dried fruits
to
Supermarkets are also busy with orders to ship TET
specialities overseas.
Director of Big C supermarket Ho Quoc Nguyen revealed that Big
C exported six containers of dried vermicelli, instant noodle soup, fish
sauces and dried fruits to other countries in Asia so far this holiday
season.
We’re having a great holiday season, said Nguyen adding that
he just hopes it finishes as well as it started.
During the month, transportation recorded the steepest
decrease of 3.38%, followed by housing, electricity, water, fuel and
construction materials (down 0.62%).
Only post and telecommunication services kept unchanged. Eight
out of 11 products saw price increase, however, they just rose slightly, such
as restaurant services (up 0.48%), beverages and tobacco (0.42%), culture,
entertainment and tourism (0.41%), equipment and household utensils (0.4%)
and pharmaceuticals and medical services (0.06%).
According to Hanoi GSO, the CPI decline is attributable to the
recent reduction in petroleum prices, pushing transportation prices down
sharply although citizens’ travel demand rocketed now that the Lunar New Year
(Tet) is approaching.
Online shopping brings US$3 billion to nation
The Business-To-Consumer (B2C), a kind of e-commerce, in
Notably, its sales accounted for 2% of total revenue of the
country’s retail industry.
Most popular were technological and electronic products,
fashion, cosmetics, household items, books and stationery.
The report also said that more sales were successfully made
through social networking and forum seeding.
Anti-dumping protectionism: A double edged sword
Despite World Trade Organization (WTO) commitments made by
countries around the globe to liberalize trade and fight against protectionism,
the tendency to impose trade-restricting measures and harm exports of other
countries has been on the upswing.
Against the backdrop of a world economy in recovery,
protectionism is particularly important because it runs contradictory to
international integration and fuels continuing economic uncertainty. It
also damages value chains.
During the past 20 years there have been a total of 80
trade-unfriendly measures, principally anti-dumping lawsuits, lodged against
The number of measures filed affecting Vietnamese exports has
been trending upwards, with the
The European Union (EU) made up 15% of the total cases and
The number of incidences for which countries have imposed new
export restrictions has also been on the uptick, a trend seen as worrisome
for the detrimental consequences such practices can have for both the global
commodity markets and value chains.
Typical methods of protectionism are import tariffs, quotas,
subsidies or tax cuts to local businesses, new import licensing procedures,
reference values, minimum transaction prices or banning trade altogether.
These measures have most seriously impacted the Vietnamese
seafood, garment and textile and footwear exporters, causing them to lose
markets.
Notably, however, protectionism measures have not been that
well understood nor utilized by
The only measure that was successful resulted in
Vietnamese exporters should increase links amongst
themselves and seek information on international legal regulations to reduce
losses to the manufacturing sector by unfair trade practices, said Nguyen Huu
Truong Hung at the Competitiveness Management Department.
Trade protection measures are a valid tool the WTO allows its
member countries to use legally if member countries fail to strictly comply
with agreements of the WTO on anti-dumping, anti-subsidy and self-defence
capital.
Deputy Minister of Industry and Trade Do Thang Hai in turn
noted many countries have used anti-dumping lawsuits quite effectively as
tools to fight against unfair competitiveness of foreign importers.
If found guilty of unfair trade practices a foreign company
would be prohibited from exporting to the Vietnam market for a period of five
years, which could be extended if investigations show the practices were
continuing.
Anti-dumping lawsuits and other measures should not be viewed
as protectionism measures, but rather as trade policy tools to protect fair
and balance trade, Hai underscored.
“
The government’s determination to equitize state-owned
enterprises (SOEs) is a significant factor in the nation’s economic success
and its working— that's the word we want to send to our investors throughout
the world, he said.
In 2014 alone, the Vietnam Vegetable Oils Industry Corporation
(Vocarimex) and Vietnam National Textile and Garment Group (Vinatex) were
equitized successfully, he noted.
The dialogue in
Dragon Capital Group is a leading integrated investment group
centred on the emerging financial markets of
Construction sector to bolster competitiveness
The Government has recently approved a plan of restructuring
the construction sector to increase the quality and competitiveness for the
period of 2014-2020.
The restructure aims at meeting the demand of socio-economic
development and the country's industrialisation and modernisation process,
increasing the production capacity, quality and competitiveness, and
gradually approaching the international market.
The plan sets an annual growth target of 9 – 14 percent for
the construction section during the period.
In terms of construction investment, the plan set a target by
the 2020 of building essential construction works which are well-designed,
good quality and reasonable prices.
According to the plan, spontaneous and lavish investment,
losses and corruption in the construction investment, especially for the
State-funded project, will be closely controlled.
Management and using the public fund sources will be closely
supervised as well as increase the proportion of non-State investment
capital, especially focusing on model of public-private partner (PPP).
In the field of urban development, the plan aims to develop
sustainable, clean and green urban cities, and to form some cities as big and
modern as the ones of the other countries in the region. By the year of 2020,
the target of urbanisation will be reached about 40 percent.
During the period of 2016-2020, 12.5 million of sq.m of social
houses in urban areas will be built and per capita housing area will reach 25
sq.m nationwide.
The real estate market will be sustainably developed with a
proper mechanism to overcome the present imbalance of demand-supply. The
construction sector must provide a wide range of products and service as well
as meet the demands of housing and real estate. It should further invest into
building social houses and high-end houses as well as house-for-rent
projects.
The revenue from real estate and land trading will account for
10-15 percent of the total State revenue.
To fulfil the objectives, the Government needs to further its
role of management and control to the real estate market by legal tools and
regulate the market by issuing proper policies relating to credit and tax
issues.
The projects relating to real estate and housing nationwide
will be also re-assessed and re-classify requiring the real demand of the
market.
The construction sector must have concrete plans to solve
suspended projects in big cities especially in
As per the plan, the Government will have incentive policies
through the financial aids, tax and credit programmes to encourage all
economic sector to invest into social houses for privileged people, public
employees, armed forces, and low-income people.
Besides, real estate trading will be opened for foreigners and
foreign entities and overseas Vietnamese as well.
The restructuring will include speeding up the equitisation of
the State-owned companies with a model which the government will not hold
main shares.
The management will be improved in order to ensure the
businesses operating under the market mechanism and health competition.
Upgrade of
Chairman of the Thua Thien-Hue People’s Committee Nguyen Van
Cao said the province has reached agreement with the Royal Caribbean Cruise
Company of
All dredging works and upgrade will complete before April 30.
The upgrade is intended to allow the port to receive
super-size ships and contribute to the province’s increasingly important
tourism.
The project includes increasing the length of Wharf No 1 from
300m to 360m, dredging an area of 90mx450m in front of the wharf and
expanding the turning area.
When the project, which is estimated to cost 85 billion VND
(3.96 million USD), completes, the
In January, Thua Thien Hue welcomed the first cruise liner,
the Celebrity Century, carrying 2,500 tourists to the ancient imperial city
of
The central province has set its sight on drawing 60,000
tourists via Chan May Port.
Vietnamese community in Sweden greets New Year
The Vietnamese Embassy in
Addressing the event, Ambassador Tran Van Hinh reviewed the
achievements that
He stressed that the Party and State always consider overseas
Vietnamese communities are an indispensable part of the Vietnamese nation.
The diplomat wished the Vietnamese community in
Previously, on February 10, the embassy also organised a meeting
with Swedish friends in honour of the traditional Lunar New Year (Tet).
Participants praised
SBV moves to restructure even well-performing banks
The State Bank of Vietnam (SBV) plans to deal with six or
eight banks in 2015, including efficiently-operating ones, according to
Governor Nguyen Van Binh.
The State-run banks will be merged or with joint-stock ones,
while those with poor performance will be sold back by the SBV, he said.
The move aims to create banks with bigger operational scale
and better performance, he explained.
In the first phase of the banking system restructuring plan
from 2011 to 2015, the SBV has only focused on handling the worst-operating
banks.
The second phase will concentrate on rearranging not only weak
banks but also healthy ones to enable their stronger operations, Binh said.
EVN expedites key power projects
The Electricity of Vietnam (EVN) has asked the National Power
Transmission Corporation to double efforts to put into use a number of power
projects as soon as possible.
The projects include the upgrade of the 500kV Nho Quan
(northern Ninh Binh province) – Ha Tinh (central province) power line.
The EVN Hanoi was asked to ensure the building progress of the
220kV Chem-Tay Ho power line and the 220kV Tay Ho transformer station.
Meanwhile, the Northern Power Corporation needs to speed up
the installation of the 110kV Hiep Hoa-Yen Phong power line, which will
supply electricity for the Bac Ninh-based Samsung group’s factories, together
with other 110kV lines connecting with the 220kV Than Uyen and Hai Ha
transformer stations.
The Southern Power Corporation should ensure electricity
access for people in Kien Hai island district, the southern
In January 2015, two turbines of the Mong Duong and Duyen Hai
thermal power plants with a combined capacity of 1,162 megawatts were
commissioned.
In addition, the capacity of the 220kV transformer stations of
Soc Trang, Chau Doc, Phan Thiet, and the 220kV Vinh Tan (northern Bac Ninh
province)-Phan Thiet (central Binh Thuan province) power line was increased,
well serving local needs.
During his recent talks with Vietnamese young intellectuals
and students working and studying in the UK, the executive stressed that a
stable, though not strong, recovery seen in Vietnam’s stock market over the
last three years is an important sign of the country’s economic recovery
because it reflects the general situation in enterprises.
Dominic Scriven hailed the Vietnamese Government for its
effort in accelerating the equitisation plans for State-owned enterprises
(SOEs), citing successful cases of Vocarimex (Vietnam Vegetable Oils Industry
Corporation) and Vinatex (Vietnam Natioal Textile and Garment Group). He
added that the process is going to attract great interest from international
business communities.
The business leader said young Vietnamese trained abroad are
an asset for
The Dragon Capital Group put
Incentive policies necessary to develop support industry
More support should be given to several key industries to help
add value and increase the localisation ratio of exports, the Industry and
Trade Department of HCM City has said in a new report.
The department urged the city to develop incentive policies
for support industries, especially for engineering, electronics and garments,
and encourage local enterprises to use domestic technology, machinery and
materials.
To help businesses, the department said it has provided
capital, business space, IT application and re-investment for new technology.
In the near future, the city plans to give priority to
increase exports that have special advantages, including high value-added and
high-technology exports.
It will also reduce exports of raw materials.
Support industries will be set up in high-tech parks, new
export markets will be approached, and high value-added agricultural products
and food will be created. More worker training courses are also part of the
city's plan.
As for exports, the proportion of technology, processing and
manufacturing industries comprise 68.26 percent, more than the city's target
of 62 percent by 2020. On a national level, it is 58.5 percent.
The proportion of four key industries in
For two labour-intensive industries, shoes and textiles and
garments, most workshops have been moved to rural areas where industries can
take advantage of the supply of labourers.
Value-added processes like design, new models and luxury
fashion have remained in
SSC calls for changes to real estate funds
The State Securities Commission (SSC) has suggested easing
regulations in the hopes of developing the investment tool of Real Estate
Investment Trusts (REIT), which have been officially permitted in
REITs are a popular investment in developed countries. By
purchasing REIT fund certificates, investors can invest in real estate assets
without having to buy property.
The funds were expected to provide a new channel to raise
funds for the real estate market and help reduce real estate-related bad
debts in banks.
However, current regulations do not allow real estate
companies or property owners to contribute property to the funds. The rules
also prohibit the funds from borrowing more than 5 percent of its net asset
value after its establishment.
Fundraising in recent years has hovered around 50-100 billion
VND (2.3-4.7 million USD), much lower than the real value of properties. The
lack of capital further impedes funds from seeking investment opportunities.
Moreover, unlike laws in other countries, the law includes no preferential
tax policies for real estate funds, such as tax exemptions.
Property prices in big cities remain high while rents of
office and retail centres will likely continue their downward trend. This not
only negatively affects profits of the leasing segment, but also makes
financial institutions and real estate companies and investors less
interested in REITs.
In an effort to promote REITs, the SSC's Fund Management
Department said the commission has plans to change Circular 228, which guides
the establishment and management of real estate investment trusts, this year.
Contribution of property to REITs would likely be allowed.
To do this, sponsors must register to contribute property that
they own, such as shopping malls, apartments or hotels, to the real estate
fund management company. Then the property must be approved by the fund
manager and its value and business prospects must be evaluated. Finally the
property must be issued a valuation certificate and published in the
prospectus of the fund.
Assets of the fund are separate from the assets of the fund
management company. Ownership of contributed property will be transferred to
the real estate fund and sponsors will receive cash or fund certificates for
their contribution. The fund manager will register listing and trading of
fund certificates on the stock market. In addition, the authority will also
consider introducing the accounting method and preferential tax policies for
real estate funds in line with international practice.
Credit growth seen in January
Credit growth rose slightly in January, a good start for
efforts to achieve a credit growth of 13 -15 percent this year, reported the
Cong Thuong (Industry and Trade) newspaper.
According to
Meanwhile, in
The positive results were attributable to the launch of
several credit packages with preferential interests, the paper said.
For instance, VietinBank has offered loans for auto purchase
at an annual interest rate of 7 percent, while VIB announced a short-term
lending package of 1 trillion VND (47 million USD) at an interest rate of
from 8.49 percent for a year.
Most creditors agreed that to achieve the growth target, it is
necessary to have further support localities and the State bank so as to deal
with bad debts and facilitate enterprises to access available loans.
Economics experts noted that the interest rate was in a
downward spiral over the last two years.
Both economists and the National Financial Monitoring
Committee recommend bankers to continue following the trend with more
interest cut made in mid- and long-term loans.
Maritime Bank allows to acquire textile finance JSC
Maritime Bank (MSB)’s request to take over Textile and Garment
Finance Joint Stock Company (TFC) has recently received approval from the
State Bank of Vietnam (SBV).
Under Official Letter No.1003/NHNN-TTGSNH, the SBV Governor
agreed in principle the merger plan approved by Boards of Directors of MSB
and TFC.
TFC is a subsidiary of the Vietnam National Textile and
Garment Group (Vinatex).
MSB is requested to complete paperwork required in Point 2,
Article 19, Circular 04/2010/TT-NHNN of the SBV on the merger and acquisition
of credit institutions.
Provinces highlight tourism contributions
Provinces have given high estimation to travel companies’
contributions to local socio-economic development by making Xong Day
“first-footing” visits to some of them on February 19, the first day of the
Lunar New Year.
Southern Ba Ria-Vung Tau province officials visited and
extended New Year greetings to local tourist companies, marking the activity
as a tradition that has been carried out for nearly a decade in the locality.
The visit meant to deliver a wish for a prosperous year for
the tourism sector and cement the relationship between the administration and
businesses.
Nguyen Van Trinh, Chairman of the provincial People’s
Committee, spoke highly of efforts made by the local tourism sector thus far,
adding that the quality and diversity of tourism products meeting customers’
demand must be prioritised.
According to Trinh, Ba Ria-Vung Tau received some 14 million
tourists last year, earning 3.3 trillion VND (153.8 million USD) in revenues
and realising 104 percent of the year’s target.
The visit was held ahead of the 2015 Ba Ria-Vung Tau cultural
festival, which runs from February 19 to 28.
Meanwhile, on the same day, in the
A traditional music programme was also held to warmly greet
those visitors who came from
More remittances to fund property purchases
The amended law, which takes effect on July 1, 2015, will
allow those Vietnamese people residing in foreign countries who are allowed
to enter
In addition, foreigners allowed to enter
The new regulations for overseas Vietnamese and foreigners who
want to buy houses in the country are more flexible in comparison with the
previous regulations, which were so tight that only a little more than 400
overseas Vietnamese and foreigners have managed to buy houses in the country
since 2009.
According to Vo Tri Thanh, deputy director of the Central
Institute for Economic Management (CIEM), the flexible regulations will
attract more remittances into the property sector.
Estimates show that about US$1.5 billion of a total
$12-billion of remittances into
Thanh said that the figure will rise in the coming years, when
the amended law comes into force.
A research conducted by CIEM and Western Union at the end of
last year in seven provinces and cities that receive huge remittances, showed
that 30 per cent of the receivers put the money in deposits; 27 to 30 per
cent invested the funds in production and services; 20 per cent bought gold;
and 16 to 17 per cent bought land and houses.
Experts also said that the amended law will make
Richard Leech, executive director of CBRE Viet Nam, was quoted
by Dau Tu (Investment) newspaper as saying that the relaxation of regulations
marked an important step in widening the door of the property market to
foreign investors.
He added that the only two limitations that remain are
foreigners are not allowed to own a house for a period exceeding 50 years and
the percentage of apartments foreigners can own in a building or an area has
been capped.
Leech did not expect any immediate impact of the new law, but
said that the housing market will gradually improve.
An increasing number of foreigners are expected to participate
in the property market this year, as opportunities are large with the market
recovering after having allegedly hit rock-bottom levels.
Vietnamese consumers preferring domestic confectionary to
imported ones
Vietnamese confectioners have gained the trust and love of
local customers again during recent years, gradually controlling the market
in spite of fierce competition from imported foreign confectionary.
Confectionary products imported from other countries, such as
Domestic products from prestigious confectioners, such as the
Kinh Do, BiBica, Hai Ha and Huu Nghi corporations, now make up for a major
portion of products on sale at many supermarkets and confectionary shops.
Nguyen Thanh Huong, a resident of Hai Ba Trung District, said
she will also opt for domestic confectionary as gifts for relatives and
friends during this Tet (Lunar New Year) festival.
"Their prices are cheaper than imported ones and the
quality is also quite good. I particularly feel secure about the products'
origin," she said.
Pham Minh Ha, the owner of a confectionary shop in Hoan Kiem
District, said the consumption of domestic confectionary products this year
had risen by 1.5 to 2 times in comparison with imported products.
Consumers are turning to buy local products because of their
cheaper prices and clear origins, she stated.
"Domestic products' designs have also improved much more,
making them more attractive to consumers," Ha pointed out.
The achievement is attributed to businesses' investment in
technology renovation, development of strategic products, product design
improvement and reasonable prices.
They have also applied international standards to produce safe
and qualified products.
For this year's Tet, confectioner Kinh Do corporation produced
around 5,000 tonnes of products, while the Huu Nghi corporation produced
13,000 tonnes of products to meet market demand.
The improvement in local products has also drawn notice from
many supermarkets, which have started giving priority to local-made products.
The Director of the Co-op Mart Supermarket, Nguyen Tien Dung,
said domestic confectionary often makes up for more than 90 per cent of the
products on sale at the supermarket.
Local products have a similar design and quality as imported
ones and they are also priced affordably, because of which they were chosen
by many consumers, he said.
However, with the entry of more foreign brands into the
market, such as Tous Le Jour, Paris Bagguette and Lottee, domestic businesses
are facing fiercer competition, forcing them to continue renovating
technology and focus on the development of key products to maintain a firm
position in the market.
Vietnamese consumer confidence "largely intact":
Economist
Vietnamese consumers started 2015 with their confidence
broadly unchanged after a tumultuous 2014, ANZ Bank Economist Glenn Maguire
said in a recent report.
According to the chief economist of the bank, in
The report said that in terms of personal finances at present,
33 per cent (down 1 percentage point) of the Vietnamese people said their
families are "better off" financially than a year ago, compared
with 21 per cent (down 1 percentage point), who said their families are
"worse off".
Among the respondents, 53 per cent (down 5 percentage points)
expect their families to be "better off" financially this time next
year, compared with just 6 per cent (up 1 percentage point), who expect them
to be "worse off".
Half said
Fifty-seven per cent (down 2 percentage points) expect the
country will see "good times" economically over the next five
years, compared to 7 per cent (down 1 percentage point), who expect to see
"bad times".
Forty-three per cent (up 3 percentage points) said now is a
"good time to buy" major household items, compared to 11 per cent
(down 2 percentage points), who said now was a "bad time to buy".
Glenn further said that the most interesting aspect of the
Vietnamese consumer confidence readings was that the considerable decline in
international oil prices has not been able to arrest the modest deterioration
in confidence during recent months.
"We suspect that the on-going slowdown in
"To the extent that concerns over China's slowdown are
outweighing the positive impact of falling oil prices, Vietnamese consumer
confidence might continue to remain ‘sticky' at current levels," he
added.
ANZ Bank and Roy Morgan Research had launched the monthly
private consumer index for
DATC posts rise in profit in 2014
The Debt and Asset Trading Corporation (DATC) last year bought
debts of 36 businesses, valued at VND825.4 billion (US$38.5 million), posting
52 per cent year-on-year increase.
Its total revenue in 2014 reached VND1.03 trillion ($48.1
million), representing a 91 per cent year-on-year increase and 21 per cent
higher than the set target. Its posted profit that was 2.54 times higher than
of 2013. DATC contributed VND50 billion ($2.33 million) to the State budget.
The corporation said that in the past 10 years, its activities
of buying debts and assets from restructured State-owned enterprises have
accelerated the change of ownership of companies.
DATC received debts and assets from 2,468 businesses, worth
about VND4 trillion ($186.9 million), during the 10-year period.
By the end of last year, DATC had contributed VND558 billion
($26 million) to the State budget during the period. This included buying of
assets worth VND440.3 billion ($20.5 million) and collection of debts worth
VND20.6 billion ($962,000).
The corporation said that the results achieved from buying of
debts in 2014 were a breakthrough.
DATC's total investment in other businesses was VND1.07
trillion ($50 million) through buying of debts, financial restructuring and
capital contribution.
Last year, Prime Minister Nguyen Tan Dung agreed to give an
additional VND3.1 trillion ($144.8 million) to the corporation's charter
capital in the 2014-15 period. Of this, VND2.5 trillion ($116.8 million) will
come from the Fund for Business Restructuring and Development, while the
remaining will come from other resources.
This is because production costs, including oil and fibre
prices, have dropped recently, said Le Tien Truong, General Director of
Vietnam National Textile and Garment Group (Vinatex).
According to the General Customs Department, Viet Nam's
export-import turnover touched US$27.17 billion, an increase of 1 per cent
from December, and 25.5 per cent from January 2014.
Of that, textile and garment exports rose by 2.1 per cent to
$1.9 billion, ranked behind cell phone and spare part exports, which drove up
the country's exports by $2.4 billion, an increase of 41 per cent over last
January.
The General Customs Department also reported that the
However, Vietnamese producers saw an increase of 6 per cent to
$242 million in textile and garment exports to
The General Director of Vinatex cautioned that Vietnamese
producers will encounter some problems this year.
He said
In
He pointed out that Vietnamese producers also improved their
production facilities. However, it will take a long time for these facilities
to start functioning properly.
Truong added that these agreements will help Vietnamese
producers create partnerships with their potential customers, till the
Trans-Pacific Partnership becomes effective.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 23 tháng 2, 2015
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