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BUSINESS IN BRIEF 24/3
VN firms face Lao hiring woes
A workshop was held on Thursday in
The event, organised by the Lao Ministry of Labour and Social
Welfare (MoLSW), was attended by Deputy Minister Baykham Khatthinha, Minister
Counsellor Tran Manh Cuong, and various representatives of businesses from
the two countries.
The workshop was designed to improve the Ministry's and
relevant bodies' implementation of the Agreement on Labour Cooperation
jointly signed by the two Governments, as well as create a favourable
business climate for Vietnamese enterprises in the country.
Addressing the event, the Lao Deputy Minister spoke highly of
the working skills and attitude of Vietnamese labourers, affirming that the
workers had made significant contributions to local socio-economic
development.
The Government of Laos and the Ministry considered Vietnamese
labourers in
She also called upon Vietnamese businesses and labourers to
abide by the laws and regulations of the host nation to ensure their own
success and facilitate management.
Representatives from Vietnamese businesses suggested the
country expand its labour quota, reduce labour fees, and simplify licensing
procedures to encourage Vietnamese labourers to work in the country.
Aviation firms' problems discussed
The Civil Aviation Authority of Viet Nam (CAAV) under the
Transport Ministry held a conference in Ha Noi on Thursday to discuss the
current performance of aviation firms.
The conference also deliberated on coming up with relevant
measures and policies to mitigate the difficulties facing these firms.
Addressing the audience at the event, CAAV Deputy Director Vo
Huy Cuong said the Transport Ministry would focus on strengthening reforms
for the satisfaction of businesses and people in 2015.
The ministry was also eager to hear from enterprises about how
policies should be designed to create favourable conditions for aviation
firms and boost sustainable growth.
Participants agreed that one of the factors influencing
aviation enterprises' costs was the rise in environmental taxes imposed on
fuel. Vietnam Airlines' costs are estimated to have increased by VND750
billion (US$35.25 million), while that of Vietjet Air had jumped VND400
billion ($18.8 million) and Jetstar Pacific by VND150 billion ($7.05
million).
A Vietnam Airlines representative proposed that the costs
covered through marginal increases in ticket fares would also ease the impact
on firms. Meanwhile, a Viet Nam Air Services Company representative suggested
environmental tax exemptions for Jet A1 and A0 gas.
Another issue raised by airlines operating flights to and from
Phu Quoc was the need to clarify visa exemptions for tourists in Phu Quoc and
procedures for visiting Ha Noi and
Vietjet Air Deputy General Director Nguyen Duc Tam said his
company hoped to engage in recruitment for ground services.
Representatives of the Khanh Hoa provincial People's Committee
and the Vietnam Airlines Corporation on Thursday held a working session to
discuss the construction of a new terminal at the
The airdrome in Nha Trang city is one of the country's four
airports that are seeing a rapid growth in terms of passenger traffic.
In 2014, the airport welcomed over 2 million visitors,
exceeding its designed capacity of 1.5 million passengers, and the flow is
expected to grow to 4 million passengers by 2020.
The airport was overcrowded and currently unable to meet
demand, Director of Cam Ranh International Airport Phan Le Hoan, said,
stressing on the need to build Terminal 2.
According to a preliminary draft project, the new terminal
would require a total investment of over VND1 trillion ($46.5 million),
covering 15,000 sq. metres of land and will be used to serve international
flights. The existing terminal would serve domestic flight traffic.
The Chairman of the provincial People's Committee, Nguyen
Chien Thang, said the project was in line with the province's development
strategy and would attempt to transform Khanh Hoa into a socio-economic hub
in the southern central region.
Real-estate enterprises flocking to smaller cities
Several property developers are flocking to invest in
localities outside big cities due to their favourable location, preferentials
and low building costs.
Earlier this month, Vingroup proposed to build a new
administrative centre in the central
According to the plan, Vingroup would build a 25-storey
commercial centre spread over 5,500 sq. metres and a three-storey commercial
building on an area of 44,740 sq. metres at the site of the existing
administrative centre in the province's Dien Bien Ward.
Vingroup committed that the project would be built according
to requests made by the Thanh Hoa People's Committee to convert it into a
high-grade urban area. It completed a design for submission to the provincial
authorities.
If the plan is agreed upon, Thanh Hoa would become one of
first two provinces in
Last July, FLC Group had also started the construction of a
residential complex in the province with a total investment of VND1.2
trillion (US$57 million).
This project would include a trading and service centre and
apartments spread over 16,022 sq. m in the centre of the city.
The project is expected to supply 400 apartments with an area
between 45 and 100 sq. m per unit.
In addition, the group also signed a memorandum of
understanding for investing in other market segments in the province.
The
However, property developers have been careful about
penetrating new markets.
Nguyen Quoc Hiep, chairman of GP Invest Company's management
board, told vnexpress.vn that the company had decided to invest in an urban
area in northern Phu Tho Province because of its central location.
Hiep said the land clearance fund and completed infrastructure
would help businesses in reducing investment.
A representative from Thanh Dong Property Investment Company,
which has invested in an urban and tourism area in the Hai Duong and Ninh
Thuan provinces, said harsh natural conditions had affected construction
progress despite active support from local authorities.
Tran Duc Dien, the general director of the Max Viet Nam
Company, which has several ongoing projects in the Nha Trang, Da Nang, Ha
Long and Quang Ninh provinces, said a lack of professional marketing staff in
these provinces had led to difficulties in making sales.
Vietnamese rice exporters face ‘delisting' challenge
Vietnamese rice exporters, such as An Giang Import-Export
Company (AGM) and Vinh Long Cereal and Food Corporation (VLF), face being
delisted from the stock market if they continue to suffer losses this year,
Dau Tu Chung Khoan (Securities Investment) magazine reported yesterday.
Last year, AGM recorded a net profit of VND5 billion
(US$238,000), just 20.83 per cent of its yearly goal and a 83.87 per cent
drop from 2013. VLF came out in the negative with a loss of VND38.5 billion
($1.83 million) last quarter and a yearly loss of VND47 billion ($2.24
million).
The two rice exporters borrowed large loans on small equities,
a generally risky fiscal move. AGM borrowed VND339 billion ($16.1 million)
when its equity was VND345 billion ($16.4 million). VLF borrowed VND231
billion ($11 million) with an equity of just VND92 billion ($4.38 million).
Another rice exporter, Dong Thap Trading Corporation (FDG),
was already delisted from the HCM City Stock Exchange last May once its
losses exceeded its chartered capital. Last year, FDG recorded revenues of
VND300 billion ($14.3 million), one-third of 2013's number.
This year, these three exporters, and others, will continue to
face challenges as
The Viet Nam Food Association (VFA) blamed Vietnamese rice
exporters' losses on the dropping global price of rice. VFA reported that
At the moment, the VLF stock is marked as a Designated
Security on the
AGM this year set an optimistic revenue target of VND2.24
trillion ($106.6 million), an increase of 27 per cent, and a net profit of
VND23.3 billion ($1.1 million), nearly fivefolding last year's number.
Not a good time, say banks as central bank urges listing
Although the State Bank of Viet Nam (SBV) has been pushing
joint stock banks to list on exchanges, the progress has remained slow.
This is because many banks expressed the view that it was not
a good time for them to list due to the ongoing restructuring of the banking
sector.
The Government has developed a roadmap for all commercial
banks that must be listed on stock exchanges by the end of this year, with
the aim of enhancing their operational transparency and reduce cross-share
holdings.
Accordingly, 25 commercial banks have to be listed this year
out of nearly 1,000 public companies.
During the latest effort related to this project, SBV Governor
Nguyen Van Binh had issued a directive at the end of January in a bid to push
the listing process of commercial banks on exchanges.
Binh had ordered the central bank's provincial branches to
push commercial banks to realise their listing plan and closely monitor their
progress.
This is not the first time that such an effort had been made.
At the end of 2013, the State Securities Commission and SBV had pressed
public banks to get listed in order to improve management and reduce
cross-share holdings. In July 2014, the policy was re-emphasised with the
target that all commercial banks must be listed in 2015.
Although many banks have already formulated listing plans, the
plans are still existent only on paper as banks feel it is not to their
advantage to list at the moment. Also, banks are seeking to enhance financial
capacity before listing their shares on exchanges, in order to attract
investors' attention or prioritise other plans during the restructuring
process rather than the listing.
The Southern Bank, NamA Bank, HD Bank were among the banks,
which had planned to list on the HCM City Stock Exchange several years ago.
HD Bank said it would list when the stock market saw better
recovery, the Dau Tu Chung Khoan (Securities Investment) magazine reported,
adding that the bank was seeking foreign capital before listing.
Meanwhile, the Nam A Bank has also stepped up the progress of
its plan to list on the exchange within this year.
Dong A Bank had delayed its listing plan four years ago as the
market was on a decline, saying at the time that the bank would list when the
market was stronger so that it could prevent losses for its stakeholders.
Currently, there are eight banks listed on exchanges,
including Vietcombank (VCB), Vietinbank (CTG), Eximbank (EIB), Sacombank
(STB), A Chau Bank (ACB), Military Bank (MBB), Citizen Bank (NVB), Sai Gon Ha
Noi (SHB) and BIDV (BID), which have a combined market capitalisation of
VND134 trillion ($6.3 billion).
If all commercial banks were listed, their total share value
was estimated to reach VND150 trillion ($7 billion).
PM Dung approves EVN capital increase
Prime Minister Nguyen Tan Dung approved a plan to raise
Electricity of Viet Nam's (EVN's) charter capital to VND160 trillion (US$7.62
billion) by the end of 2015.
The company had more than VND143.4 trillion ($6.83 billion) in
equity at the end of 2012. The supplemented capital will come from various
sources, including development funds, construction project balances and State
finances.
Dung assigned the Ministry of Industry and Trade and the
Ministry of Finance to provide specific guidelines for the implementation of
the plan.
The State-run EVN specialises in producing, transmitting and
trading electricity. It also manages the national grid, power import and
export, and electric work operations.
An Giang to host fair for high-quality products
Around 180 businesses will display their products at the
annual Vietnamese high-quality products fair in An Giang Province next week.
The fair, to run from March 24 to 29 at An Giang University,
will have 400 booths offering hundreds of products.
One of them will showcase the economic strengths of An Giang,
Ben Tre, Can Tho and Dong Thap, their products and services, and innovations
and achievements. It will also feature innovative projects by companies,
research institutes, and schools and solicit technological and managerial
assistance to add value to farm produce in the Cuu Long (
The fair will host a conference titled "Measures to
increase innovative content in the Mekong Delta's agricultural
restructure".
Tax authorities in
Gunze Viet Nam Limited company wanted to know if a VND200,000
(US$9.3) per month allowance paid to women workers for putting children aged
three to six months in kindergartens was tax-deductible.
The tax authorities assured that it was tax-deductible as long
as the total payment in a year did not exceed one month's salary.
Others asked about value-added tax refunds.
Hai Dang Telecommunications and Electronics Limited Company
said it had exported some products that were returned due to technical issues
and wanted to know the procedure for getting back the invoice since
value-added tax was involved.
Some firms questioned the need for obtaining the buyer's
signature in the receipt, with Cao Tran and Phu Ngan companies saying since
they delivered goods through transport companies or the postal system it was
difficult for them to get the buyer's signature on all three copies of the
bill.
Tran Thi Le Nga, deputy head of the city tax department, said,
"Customers only need to sign one copy."
Nga admitted that some companies had wound up their operations
several years ago, but her agency was yet to complete the procedures required
for them to officially close.
She apologised for the delay saying it was caused by the
shortage of human resources.
The city Taxation Department would work with all
sub-departments to review all cases and resolve them as quickly as possible,
she promised.
This year certain fisheries products have been provided tax
breaks, and businesses must understand them properly, she said.
If any of them had already made out value-added tax invoices,
they should make a report to get refunds, she added.
Korean enterprises propose investment in Ba Son area
The EUNSAN Shipping & Aircargo Co. Ltd and OUE Ltd from
the
HCMC has approved a master plan to develop the premises of the
current military-owned Ba Son Shipyard in a prime location in the downtown
area into a major commercial, financial and services center.
The architecture of constructions there will be in harmony
with Thu Thiem 2 bridge and the Metro line 1 which connects Ben Thanh Market
and
EUNSAN is a resourceful and proficient NO.1 freight forwarding
company with a worldwide network of agencies.
Meanwhile, OUE Limited is a diversified real estate owner,
developer and operator with a real estate portfolio located in prime
locations in Asia and the
If the proposal is approved, the project will be implemented
on
Sustainable markets for Binh Dinh incense sticks
Incense makers in the central
The Bao Vy production workshop in Go Da Trang industrial
complex manufactures 30 tonnes of incense sticks for export each day, making
it one of the largest incense export contributors.
Nguyen Minh Nhut, owner of the Bao Vy business, said that each
container of incense is sold for 500 million VND (23,800 USD), highlighting
that
Each labourer can produce hundreds of kilograms of incense
sticks each day with the support of modern incense-making machines, he added.
Due to incense-making machine exports, other foreign
enterprises are enlarging their operations, raising competition for
Vietnamese exporters. The market for Vietnamese incense products is still
buoyant, however, creating opportunities for local businesses to foster
protective measures.
According to the provincial Department of Industry and Trade,
Binh Dinh has already generated nearly 700,000 USD from exporting incense
from the outset of this year. It earned a total 6.7 million USD from the
product in 2014.
Car imports rise 86 per cent over last year
The figure, however, was only half that of January, when
Vietnamese imported 9,596 cars valued at $185.7 million. The fall was
attributed to the long Tet (Lunar New Year) holiday.
However, car dealers predict that the car-import market is
still on track to keep growing.
In the first two months of this year,
The total number of imported cars in
Many dealers believe car imports will keep rising as
VP Bank buys
Vinalines plans to sells off its 51 per cent of stakes in Cai
Lan International Container Terminal (CICT), Thoi bao Kinh te Sai Gon (Sai
Gon Economic Times) newspaper reported this week.
Vinalines, a State-owned company, proposed selling its
majority stake in the terminal to VP Bank as a solution for its outstanding
debt. The deal is pending for revision and approval from the Government, the
Ministry of Transport and other related ministries.
By the end of 2014, Vinalines amassed debts of nearly VND9
trillion (US$428.5 million), the major reason for the recent deal proposal.
If the transfer to VP Bank goes through, they will become the
majority shareholder whose first task will be the handling of the CICT firm's
debts.
CICT has been in operation for two years already, yet has only
utilised 20 per cent of its potential capacity, which is 520,000 TEU/year.
Shipping companies have been cutting back the number of their
ships docking at the port because of its distant and inconvenient location,
as well as its high port fees.
The CICT firm took large amounts of bank loans they haven't
been able to pay back due to poor profits. CICT's bank debts tripled from
US$4.4 million in 2012 to $13.6 million last year.
The Cai Lan Terminal faced additional difficulties after the
Baltic Dry Index (BDI), used to measure changes in the cost of transporting
raw materials, decreased sharply from 770 points in the end of last year to
560 points this month. Forecasters says it seems unlikely to improve anytime
this year.
CICT now faces difficulty calling in $20 million in investment
money from its two shareholders, Vinalines' CPI and SSA Marine, an American
cargo-shipping company. The capital is sorely needed to allow the firm to
stay in operation and deal with its financial situation.
However, the foreign shareholder, SSA Marine, has said it will
not make additional investments as it wants to maintain its current 49 per
cent stakes.
IT park chalks development plan
The Quang Trung Software City (QTSC) this year will focus on
improving services and upgrading its grounds in an aim to have a greener and
cleaner working environment, and attract more investment, its deputy director
has said.
QTSC plans to upgrade its internal road system and
entertainment and catering services to create an ideal workplace, Lam Nguyen
Hai Long said at a ceremony held on Friday to mark its 14th anniversary.
It will also improve services and offer conveniences to
companies that lease space at the software city, and expand telecommunication
services for State-owned corporations.
This year, it will look for an appropriate site for the
construction of QTSC 2 and prepare to build a QTSC in Da Lat.
QTSC, in collaboration with 14 companies and organisations,
will organise the first Viet Nam IT Outsourcing Conference in October in
The conference will provide a good opportunity for outsourcing
companies in QTSC to seek collaboration with local and foreign partners, he
said.
Long said QTSC sought to attract at least one of the world's
leading information technology firms on the list of PwC Global Top 100 Companies,
and one to two other tenants in 2015.
In addition, it will hold promotion programmes in other ASEAN
countries.
Some 119 IT firms are operating in the park, Long said, adding
that there would be 120-125 firms by the end of the year.
The total revenue of IT companies in the park last year
reached US$173.08 million, a year-on-year increase of 26.4 per cent, with
software exports going up by 38.9 per cent to top $98.44 million, he said.
Property firms hire more sales staff
Real-estate companies commenced recruitment from the beginning
of this year to cope with the anticipated strong sales of property, along
with expectations of a recovery in the market.
Many firms announced plans to recruit up to thousands of
employees within the first quarter of this year to beef up human resources to
boost sales and the distribution of property products.
Nguyen Khai Hoan, chairman of Khai Hoan Land Company, said
that in the context of the promising abundant supply of property products,
firms with strong and high-quality human resources would gain an advantage.
The Khai Hoan Land Company plans to raise the number of
employees to 1,500 this year from the current 600. On average, the company
hired dozens of new brokers per week in March.
STDA Real Estate Project Supermarket System has also
accelerated recruitment to meet the goal of selling 10,000 property products
this year, more than double the sales reported last year. The company aims to
hire 1,500 brokers this year, adding to its current team of nearly 2,000.
The high rate of successful real-estate transactions during
the first two months of this year had consolidated confidence of property
firms, Nguyen Tho Tuyen, SDTA's general director said, adding that the market
required professional sales agents.
Another property giant, FLC Group, also reported its intention
of recruiting 2,000 employees in 2015 for developing and operating its
projects.
Other companies, such as Thanh Yen, Hung Thinh Corporation and
Maxland also plan to hire thousands in new staff this year.
Tran Duc Dien, CEO of Maxland, said the property market had
started recovering, following which supply and revenue targets were raised,
forcing property agents to improve their sales staff.
The quality of property salespersons also needed to be
enhanced as a large number of buyers were expected to be foreigners,
following the regulation of allowing foreigners to buy housing in the
country, according to the director of a real-estate firm.
The Chairman of the HCM City Real Estate Association, Le Hoang
Chau, said that with the rising number of property trading floors and
brokers, competition in the sector would be harsh.
However, the increased competition would also help the
property market realize its real value, Chau added.
According to the Viet Nam Real Estate Association's report,
more than 2,300 successful real estate transactions were completed in Ha Noi
and
In Ha Noi, 1,200 successful transactions were completed in
February, down by 20 per cent over the previous month, but double the figure
seen during the same month last year.
Also, the number of successful transactions in the southern
city were three times higher than the same period last year.
Successful transactions were mainly for projects with good
construction progress, reasonable prices and advantageous positions.
The association's report also showed that housing prices did
not see huge fluctuations after the Tet (Lunar New Year) holiday.
Real-estate inventories were pegged at VND73.15 trillion
(US$3.46 billion) at the end of February, down by nearly VND235 billion
($11.12 million) from the end of January, the report showed.
The export turnover in
These figures were released by the municipal Department of
Industry and Trade.
Excluding crude oil, the value of exports would reach $5.25
billion, surging 5.62 per cent over that recorded in the same period last
year.
Items witnessing a rise in export turnovers include industrial
goods with $3.9 billion, up 15.1 per cent; garments and textiles at $1.19
billion, an increase of 8.3 per cent; electronics and components with $988.2
million, up 73.5 per cent; footwear at $565.2 million, a rise of 12.6 per
cent; and machinery and equipment valued at $349 million, up 8 per cent.
Several exports are experiencing a drop in value, as well.
These include numerous agricultural, forestry and seafood products, precious
metals, plastics and means of transport.
Tran Quoc Manh, from the HCM City Handicraft and Wood Industry
Association (HAWA) told vietnamplus.vn that major markets for the city's wood
and timber exports, such as European nations and
Sharing Manh's opinion, Chairman of HCM City Food and
Foodstuff Association Ly Kim Chi noted that municipal businesses have been
encountering challenges in signing new export agreements.
Further, the department believes that the city's export of
agricultural, forestry and seafood products will decrease 23.4 per cent to
$919 million.
The largest contributor to the reduced exports was rice,
bringing home revenues of only $93.6 million, a year-on-year drop of 70.2 per
cent. The same downward trend was seen in other staples, such as seafood,
coffee and rubber.
Meanwhile, the southern economic and business hub is expected
to generate $35 billion from exports this year, an 8 to 10 per cent increase
over that posted last year.
To reach this goal, the city has steered businesses to focus
on shipping industrial and processed goods with high added value.
Businesses were also advised to strengthen their presence in
Europe, both American continents, and Asia, while seeking potential new
outlets in Africa and
Further, in January 2015 it took in more than $2 billion from
overseas shipments, a year-on-year rise of 9.1 per cent.
Firms avoid business associations
Associations for enterprises should be improved further in
terms of quality of management and activities, experts said.
However, 70 per cent of them are not interested in joining
such associations, according to the survey.
Tran Huu Huynh, VCCI deputy general secretary, told online
Cong an nhan dan (People's Public Security) newspaper that the number of
newly-established associations had risen sharply nationwide at the national,
provincial and municipal levels over past few years.
Many enterprises need support from such associations and have
seen these associations playing a role in protecting the rights and interests
of enterprises, according to Huynh.
The associations also partially act as a representative of
enterprises during the implementation of trade promotion activities, connect
partners and provide information and sales training for enterprises.
However, 70 per cent of enterprises not being a part of any
association was indicative of something important, Huynh said. Firstly, these
enterprises did not really feel the need for connecting with associations.
That also meant that the associations had not played their role of helping
these enterprises well.
The enterprises were also unaware that the associations need
to be used as a tool for protecting the rights and interests of enterprises,
he said.
VCCI's Huynh said the small firms were only aware of the short
term role played by these associations of introducing them to prospective
business partners and hadn't seen them protecting the business environment,
businesses' rights and competitiveness, as well as acting as a platform for
tapping trading opportunities.
In other countries, the establishment of an association was
considered the right of enterprises and associations usually competed amongst
themselves to attract more members, he said.
Meanwhile, in
Nguyen Dinh Cung, the head of the Central Institute of Economic
Research and Management, said many state offices had assumed the role that
should have been played by the associations instead.
Therefore, ministries and sectors should separate the
formulation of policies from the implementation of the policies and market
regulation. That would create conditions for the associations to perform
their role in a constructive manner.
The associations also needed to manage trade promotion
activities and funds, such as funds of investment and industrial development,
he said.
During the current economic integration process, the
associations should specify their roles as a protector of members' rights and
interests, an organisation for trade promotion and development of core
products and supporting products, Cung said.
Property start-ups soar as capital deadline looms
There has been a wave of new property business start-ups since
the beginning of the year, as the minimum legal capital requirement of VND6
billion (US$284,000) is still effective.
From July 1, that level will be raised to VND20 billion
($945,000).
According to the General Statistics Office, the number of
property firms established in the first two months of this year rose by 89
per cent over the same period last year, or 223 firms per day.
Deputy Chairman of the Viet Nam Federation of Civil
Engineering Association Pham Si Liem said this somehow reflected optimism
about the recovery of the property market, and firms saw opportunities to
invest in it.
However, most of these start-ups were small with modest
registered capital.
Deputy President of HCM City Real Estate Association Nguyen
Van Duc said firms must be very cautious in doing business as lower average
registered capital meant that several small and medium-sized firms were at
higher risk when upheavals occurred.
"If firms want to exist and develop in a harsh property
market, they must be professional and stand on solid resources," Duc
said.
Another reason for the wave of property business start-ups was
the amended Law on Real Estate Business, which required a minimum legal
capital of VND20 billion ($945,000) from July 1, up from the current VND6
billion ($284,000).
As a result, there was a rush to establish firms before the
end of June.
Under the draft decree prepared by the construction ministry
on the basis of the law, a minimum legal capital requirement of VND50 billion
($2.64 million) might be applied on those investing in property projects that
were awaiting approval of State investment agencies. Others would be required
to have a minimum legal capital of VND20 billion.
The construction ministry said raising legal capital limits
aimed to prevent the establishment of firms en masse, which occurred during
the past few years, leading to unfinished projects and losses to buyers.
This drew mixed opinions from experts. At a conference last
week held by the Viet Nam Chamber of Commerce and Industry, most experts said
the VND50-billion minimum legal capital rule was unreasonable and
inconsistent with the Law on Real Estate Business.
Some said the regulation was not tight enough to deal with the
mass establishment of property firms, while others said raising legal capital
limits would narrow down doors for small businesses.
According to Phan Hai Anh from Vingroup, different levels of
minimum legal capitals might cause confusion. She added as the Law on Land
regulated that an investor must have equity capital equal to 15 per cent or
20 per cent of the total investment of the property project, there was no
need to have two different levels of minimum legal capital. The VND20-billion
minimum legal capital rule sounded reasonable, Anh said.
Director of Basico Law Firm Truong Thanh Duc proposed to put
the draft regulation for reconsideration, as it might be inconsistent with
the established law, adding that only one minimum legal capital level should
be applied.
Chairman of the Viet Nam International Arbitration Centre Tran
Huu Huynh said he was worried about the retroactive effect of the law, adding
that firms established before the amended law came into effect should be
allowed to keep a minimum legal capital of VND6 billion.
Huynh said the draft regulation about adjusting the minimum
legal capital level following macro-economic improvement was not reasonable,
as it might narrow down opportunities for small businesses to join the market.
PM okays new economic corridor
Prime Minister Nguyen Tan Dung has approved a broad plan to
establish a new economic corridor to enable goods to flow more freely between
It will complement other economic corridors already in
existence, including the Bac Bo (
Then there is the East-West Economic Corridor which runs from
east to west - from Da Nang in Viet Nam through to Laos, Thailand and
Myanamar. It was initiated in 1998 by regional economic leaders and opened in
2006.
The latest corridor will run from Lang Son on the Viet
Nam-China border to Ha Noi. HCM City and Moc Bai border gate in Tay Ninh
Province on the southern border with Cambodia. It will be developed over the
next five years, with a vision to 2030.
Like the others, the new corridor will not only develop trade,
it will also lead to the development of facilities and infrastructure along
the way and link with other corridors.
It will help form a framework for the whole country, helping
it become an economic and socio-economic success.
The major cities along the corridor will be the focus for
development. This will flow down to other cities and towns around them.
Under the plan, by 2020 the corridor's economic turnover is
expected to reach $220 billion, accounting for about 70 per cent of the
national gross domestic products (GDP).
Populations in urban areas within the corridor are expected to
eventually account for about 80 per cent of the nation.
About 46 per cent of the sea transport and 70 per cent of the
trans-Viet Nam mainland transport from now till 2020 will be within the Lang
Son-Ha Noi-Ho Chi Minh City-Moc Bai economic corridor.
In addition, the corridor is expected to welcome between 9-9.5
million foreign tourists and 40-41 million domestic tourists with a total
venue of $15-16 billion. The corridor's trade value will account for about 40
per cent of the country's retails value and about one third of the country's
trade value.
To achieve these targets, the Prime Minister has laid out
priorities for the development of infrastructure, particularly road
development, trade services and tourism and the infrastructure within
economic zones.
Human resources development, science and technology
application, administrative reforms, fair competitiveness among different
economic sectors and lucrative investment environment are also emphasised in
the plan.
Apart from the corridors, Viet Nam has several key economic
regions and big cities converging into a development framework for national
infrastructure system.
Cement consumption up, steel down
According to the Building Materials Department under the
Ministry of Construction, consumption of cement in the first two months of
this year reached 9.01 million tons, accounting for 103.9 percent of the same
period last year and 12.5 percent of this year’s plan.
Cement consumption posted fairly high growth compared to the
same period last year amid steady industrial manufacturing and domestic
rising demand.
In order to balance supply and demand, Prime Minister Nguyen
Tan Dung recently agreed to eliminate five cement plants whose capacity is
below 2,500 tons of clinker per day from the planning and delay 9 cement
projects to after this year. It is expected that there will be only one
cement production line to be put into operation this year so as to narrow the
gap between supply and demand.
Meanwhile, the Vietnam Steel Association (VSA) said that steel
consumption merely touched 300,000 tons in the first two months of this year,
down 30.3 percent over the same period last year, whereas steel inventory
rose 39.9 percent.
According to VSA, the country’s total steel manufacturing
capacity was up to 22 million tons, two times higher than domestic steel
demand. However, the country still has to import some kinds of steel that
local producers are not able to produce, such as hot-rolled steel sheet and
alloy steel.
VSA forecasts that demand for building steel will reach 5.97
million tons this year, up 8 percent compared to last year, steel tube 1.36
million tons, up 15 percent, plated steel sheet 3.25 million tons, up 15
percent, and cold-rolled steel sheet 3 million tons, up 15 percent.
It is forecast that in 2015 steel industry will post a growth
of 11.8 percent compared to previous year.
In order to relieve difficulties for domestic steel industry
in the future, VSA proposed relevant ministries and departments to continue
to review steel projects and cancel ineffective projects so as to maintain
balance of steel supply and demand.
Eight behindhand projects revoked from Chan May – Lang Co EZ
People’s Committee of Thua Thien-Hue has approved a policy to
revoke eight behind-schedule projects from Chan May – Lang Co Economic Zone
(EZ) in Phu Loc District.
According to an announcement by the district People’s
Committee on March 20, these projects have been implemented too slowly or
have yet to start at all.
They comprise a tourist and underwater sport site, Chan May
mechanical plant, Lap An lagoon-side ecotourism and resort site, and a resort
and golf course alongside the lagoon.
Four remaining projects include Viet Long new urban area, Dong
A (East Asia) mechanical production and processing mill, Lang Co nautical
ecotourism and villa project, and Pegasus Lang Co resort.
Uber Vietnam proposed to conduct financial obligations
Ho Chi Minh City Taxation Department on Thursday proposed Uber
Technologies Inc in Vietnam to perform its financial obligations at a meeting
between relevant agencies and the company on problems related to its online
taxi app service.
According to the Taxation Department, Uber Vietnam has not
complied with regulations in its business registration license. The
department has tried to contact the company for many times via the address on
the license but in vain.
The department proposed Uber Vietnam to make contact with tax
agencies to get instructions on the performance of their tax duties and Uber
in the Netherlands to supply the list of Vietnamese transport companies
supplying its service.
Uber representative in Asia - Pacific region said that Uber
Vietnam has been licensed by HCMC People’s Committee for six months to
provide two main services including management consulting and market
research.
Therefore, the company is just eligible to give software
system assistances to transport businesses instead of signing contracts with
any firm to supply online taxi app service.
Deputy Director of the Transport Department Le Hoang Minh said
that some Uber’s partners in Vietnam have provided the service without
transport licenses, badges and logos.
He proposed the Uber Company in the Netherlands to sign
contracts with eligible transport businesses and take responsibilities for
failing to register its operational procedures in Vietnam.
VND10.85 trillion for 2015 price subsidization program
Ten banks will provide businesses with a total of VND10.85
trillion (US$505.24 million) in loans to implement the price subsidization
program in Ho Chi Minh City this year.
That was announced at a meeting chaired by the city People's
Committee Deputy Chairwoman Nguyen Thi Hong on March 18 to review the
program's implementation last year and launch 2015 plan.
The city Department of Industry and Trade reported that 86
businesses are expected to attend in the program this year including 76 goods
suppliers and ten banks.
The program will be carried out from April 1, 2015 until March
31, 2016.
According to Ms. Hong, the program was appreciated for its
practical efficiency by the city leaders and citizens last year. She prompted
relevant agencies and businesses to better using the program's logo on
products as well as at shops and supermarkets to improve consumers' awareness
of subsidized products.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 24 tháng 3, 2015
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