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BUSINESS IN BRIEF 21/4
MPC mulls issuing non-convertible bonds to raise more working
capital
Minh Phu Seafood Corporation JSC (MPC) may decide to issue
2,500 non-convertible bonds for periods of three years or more at the annual
shareholders meeting on April 18.
MPC also plans to offer 30 million shares for at least
VND100,000 each under private placement between 2015 and 2016 to funds,
companies, domestic and foreign investors.
The revenue collected from the offering will be used to
purchase fixed assets and invested in the firm's global shrimp and fish
production chain.
This year, the company is targeting VND19.3 trillion (US$892
million) in total revenue, which will then result in a pre-tax and an
after-tax profit of VND1.58 trillion ($73.1 million) and VND1.4 trillion
($65.5 million), respectively.
The company also plans to achieve $896 million in combined
export turnover and export total 60,750 tonnes of processed shrimps.
Last year, MPC invested VND4 billion ($185,000) to hold 48.7
per cent of Minh Phu Aquamekong Seafood Raising Techniques and Services
Company.
It also funded VND2 billion to found a subsidiary named Minh
Phu Seafood Supply One Member Company, and dissolved Minh Phu Seafood Raising
One Member Company.
MPC last year recorded an export turnover of $729 million and
total export volume of 47,570 tonnes. The
The firm's total revenue was VND15 trillion ($694.4 million)
and the pre-tax profit for the holding company's shareholders was VND755
billion ($35 million).
The firm's earning per share (EPS) was VND10,930. MPC plans to
pay a dividend of VND687 billion ($31.8 million), equal to VND10,000 per
share. The dividend will be paid in two stages with VND5,000 per share each
stage.
Finns talk trade with local firms
Investment and partnership opportunities between Vietnamese
and Finnish businesses, particularly in education, IT and telecommunications,
were presented at a workshop held in Ha Noi yesterday.
Birgit Nevala, co-ordinator of a programme connecting Finnish
and Vietnamese enterprises, told the local business community of their
chances to access financial grants.
She also said that a Finnish delegation in IT and education would
visit and look for partnership opportunities in
Pham Thi Thu Hang, general secretary of the Viet Nam Chamber
of Commerce and Industry, said the event was a bridge for long-term economic
ties.
According to the Finnish Ambassador to
Trade between the two countries reached more than US$4,246
million in 2014 - footwear, apparel and furnishings from
The workshop is part of a programme to encourage Vietnamese
firms to expand overseas, especially as several free-trade agreements,
including one with the EU, enter their final round of negotiations.
Ha Noi to conduct checks at housing projects
Commercial housing projects and new urban areas in the capital
city of
Accordingly, the municipal departments of construction,
planning and architecture, planning and investment, natural resources and
environment, and transportation would implement overall checks to clarify the
progress of projects and the compliance of investors during construction of
social and technical infrastructure.
Reports must be submitted to the municipal People's Committee
by the end of this month.
Nearly 900 projects are currently under the city's management
in Ha Noi. Last year's checks revealed violations and problems at more than
350 projects, spread over a combined area of 1,400 ha, including land use
violations, slow progress and difficulties in site clearance.
The municipal People's Committee said the evaluation of
projects before licensing must be tightened, together with selecting qualified
investors.
At a meeting on Thursday, the Deputy Chairman of Ha Noi
People's Committee, Nguyen Quoc Hung, asked relevant organisations to check
the housing supply for resettlement and the use of the first floor for
resettlement housing projects before the end of April.
There were 32 housing projects for relocation under
construction in the city, with a total of more than 12,000 apartment units.
The city plans to complete 11 projects this year in case there is enough
capital, which is estimated at VND315.7 billion (US$14.7 million).
Currently, as many as 13 key infrastructure projects in the
capital city have been delayed because of trouble in site clearance. One of
the causes is a lack of resettlement homes to place dislocated residents.
Unused rice exports mount at northern border crossings
Thousands of tonnes of rice is currently stocked up in
trailers queued up at the border gates with
The drivers are awaiting customs clearance from the Chinese
side, which had slowed the imports of rice as of April 1.
The online Nong nghiep Viet Nam (Vietnamese Agriculture)
newspaper quoted a woman named Tran Thi L, who is a resident of the Pho Moi
border area, and works as a rice broker between Chinese buyers and Vietnamese
sellers, as saying that some rice-carrying trucks had been waiting for more
than a week and were forced to turn around and leave, depositing their cargo
in the border warehouses that were being rented out.
A report by the Lao Cai Provincial Department of Trade and
Investment said that since earlier this month, as little as 7,500 tonnes had
been exported, compared with a total of 75,310 tonnes during the first three
months of this year.
The Nong nghiep
One of the reasons proffered by the Chinese side was that they
were currently carrying out an air force exercise along the border and the
closure of subsidiary border crossings for Vietnamese goods was aimed at
preventing any stray bullets from being fired across the border.
The other revealed that the Chinese had launched a campaign to
crack down on smuggling along the border and also solicited the Vietnamese's
coordination.
According to the customs officer, the low river water level
had also crippled the movement of ferry boats between the two banks of the
river that serve as a border between the two countries and had also
contributed to sluggish trade in the border area.
2015
The 2015 Vietnam Trademark Forum opened in
Participants called on the National Branding Programme to help
in enhancing enterprise capacity of building, marketing and protecting their
brand names via practical actions.
Several opinions proposed that domestic firms should deliver
post-sale services to every outlet and consumer rather than relying on
publicity campaigns.
Nguyen Hoang Ngan, General Director of Binh Minh Plastics Jsc,
urged Vietnamese companies to fix weaknesses in resources to sustain their
brands, especially in the adoption of technological advances to catch up with
the ongoing international economic integration trend.
Last year, as many as 63 firms were honoured with the National
Value Awards for strong brands, an increase from 30 in 2008, deputy head of
the Ministry of Industry and Trade’s Trade Promotion Agency Do Kim Lang said
while presenting achievements of the National Branding Programmes for the
2003-2014 period.
He also pledged branding support for firms via training and
counseling while developing brands characteristic of each locality and region
between now and 2020.-
EU expert praises
Policy and Operation Director of the Ocean Energy Europe
Association (EOE) Remi Gruet said with over 3,000 kilometres of coastline,
The expert made the assessment in an interview granted to the
Belgium-based Vietnam News Agency correspondents on the sidelines of the
third Ocean Energy Forum, which was held by the European Committee (EC) in
The event is a part of activities to prepare European Union
(EU) contributions to the International Conference on Climate Change, to be
held in
Gruet said green energy in general and ocean energy in
particular is playing an increasingly important to European countries.
The forum discussed issues in licensing, developing technology
and resources for ocean energy, which is considered by the EC as one of five
focus development areas for a “green economy”, creating more jobs in coastal
areas.
Additionally, the ocean energy sector would help the EU
fortify its energy security and reduce dependence on fossil fuels used in
electrical production. The EU spends an average of 500 billion EUR (540
billion USD) on fossil fuel energy each year.
Quang Ninh airport project under consideration
The Prime Minister has assigned the Ministry of Transport to
collaborate with other ministries and agencies to appraise the proposed Quang
Ninh airport project and submit to him a report within June.
The report should clarify the necessity of the project based
on existing development plans for airports and other related schemes, its
efficiency, sources and forms of investment, and its expected impacts on
socio-economic development need and security-defence.
According to a plan of the northern province of Quang Ninh,
the airport will be built on 248.6 hectares in Van Dong island district’s
Economic Zone in the form of BOT (build-operate-transfer) with an estimated
investment of 7.49 trillion VND (531.6 million USD), including costs for site
clearance.-
Soc Trang helps new enterprises
A business incubation model was established in the Mekong
Delta
The initiative aims to build a "new" generation of
enterprises to fuel international integration and actively contribute to
local social economic development.
Funded by the Canadian government, the programme is a key
activity of the province's development plan for small-and medium-sized
enterprises (SMEs). The model is expected to help new enterprises or
individuals overcome initial challenges in starting businesses in the
province.
Director of the provincial Department of Planning and
Investment Mai Phuoc Hung said most start-ups face difficulties such as a
lack of strategic orientation, underperforming administrative competency and
low trade promotion and connectivity skills.
Vietinbank signs loan contract with foreign banks
The Vietnam Joint Stock Commercial Bank of Industry and Trade
(Vietinbank) signed a 100 million USD syndicated loan agreement arranged by
the Bank of Tokyo-Mitsubishi UFJ (BTMU) on April 16.
The foreign banks participating in this agreement include BNP
Paribas and Mega International Commercial Bank.
Speaking at the signing ceremony, Vietinbank board member
Phung Khac Ke said the bank is committed to using the loan for the right
purposes and to a rational use of resources to generate the highest return on
investment.
The loan will be an additional significant source of foreign
currency for Vietinbank to meet businesses' demands for production and trade
as well as the country's economic development.
International gift expo held in Ho Chi Minh City
Over 270 domestic and foreign exhibitors are showcasing their
products at the Lifestyle Vietnam 2015, one of the largest home décor and
gifts fairs in
On the display at over 800 pavillions are fine art articles,
handicrafts, wooden furniture, and home decoration, among others.
Do Nhu Binh, Chairman of the Vietnam Handicraft Exporters
Association, said that the event, under the theme of design and sustainable
development, aims to serve as a bridge to link domestic and foreign
enterprises while highlighting the role of creativity in every design.
Especially, the organising board arranged a zone to introduce
Vietnamese sustainable designs and latest designs by French and Swedish
specialists. Handicraft products of the 22 Vietnamese ethnic minority groups
with export potential are also on display at the area.
Lifestyle Vietnam 2015 is one of the important trade promotion
activities in the country’s fine arts and handicraft sector. It also presents
opportunities for the producers, distributors and customers to look for new
designs and market trend.
Lam Dong fish industry faces challenges
Coldwater fish farming areas have narrowed across the Central
Highlands
According to Tran Van Hao, Chairman of the Lam Dong Coldwater
Fish Farming Association, only 11 of 40 projects were launched in 2014 on 30
hectares of water surface, instead of the planned 350 hectares, producing
just 200 tonnes of sturgeons.
Low-priced Chinese sturgeon-made products smuggled into the
country have also posed a big threat to domestic trade.
Meanwhile, raising tuna requires large investments and a
strict process, forcing many firms to abandon the practice or only breed for
research purposes.
Vu Ba Lien, a farm manager at Ngoc Mai Trang Company, said
pricy imported feed, contaminated water and unusual rains caused much of his
tuna to die, requiring the business to switch its operations to sturgeons and
black carps.
These trends could lead the local industry to fall short of
its growth targets of 100 hectares of farming and 3,000 tonnes of fish
products by 2020.
First market to be built in Vietnam-Cambodia border
Deputy Prime Minister Pham Binh Minh has approved plans to
build a market to facilitate trade development and improve the living
conditions of residents along the Vietnam-Cambodia border.
On April 17, the Tay Ninh People’s Committee said that the
market, the first to be built by
The Ministry of Planning and Investment will work with the
Ministry of Finance on the project’s capital allocation. The Ministry of
Trade and Industry will work in consultation with relevant bodies and the
neighbouring country to issue regulations on the facility’s operations.
The Government also requested the Ministry of Foreign Affairs
upgrade the Chang Riec border gate in Tay Ninh to facilitate the supervision
and management of trade while ensuring social order and security in the
border area.
Work starts on maritime tourism urban area in Binh Thuan
Work started on April 18 on a 2.6 trillion VND (121.5 million
USD) marine tourism urban area in central Binh Thuan province.
The Phan Thiet marine tourism urban complex, invested by the
Rang Dong Group, covers 62 hectares in Phu Thuy ward, Phan Thiet city.
Once completed after six years of construction, the complex
includes villas, buildings, parks, lakes and recreational wards. It is
designed to accommodate up to 6,000 residents and 4,000 visitors.
Speaking at the ceremony, Vice Chairman of the provincial People’s
Committee Nguyen Ngoc said Binh Thuan targets to become one of the national
tourism destinations, with Phan Thiet being a tourism city.
The project will help improve local infrastructure facilities
and traffic system, contributing to the provincial socio-economic
development.
This forms part of activities to mark the 40th anniversary of
the liberation day of the province (April 19, 1975).-
Oscar Perez Oliva, Executive Director of the Mariel Special
Development Zone, said
Sales and services taxes are exempted in the first year and
will later rise to a mere 1 percent.
Fields in much need of investment include bio-technology,
pharmaceuticals, packaging, renewable energy, agriculture, telecommunications
and information technology, tourism, real estate and infrastructure.
Deputy Director of the Vietnam Trade Promotion Agency
(Vietrade) Bui Thanh An cited successful Vietnamese business models in Cuba,
including a hotel and an 18-hole golf course by the Vietnam Housing and Urban
Development Corporation, as well as an oil and gas survey and exploration
project by the Vietnam National Oil and Gas Group.
Last year, trade hit 207.5 million USD with
This year, Vietrade is working to connect the Vietnamese
business community with
Quang Ngai: Chilli price reaches record high
Chilli price in the central
With this price, farmers have made a profit of about 25-30
million VND (1,160-1,400 USD) with 360 square metres.
Le Tan Thuong, a farmer from Binh Duong commune in Binh Son
district , said his family is going to use the increased profit to invest in
expanding his chilli cultivation area since the profit from chilli is
five-fold that of paddy rice.
According to Phan Van Ba from Quang Ngai city, strong demand
for chilli in
Binh Duong commune grows about 100 hectares of chilli
annually.
Supporting travel agencies to join ASEAN playground
A two-day training workshop is held in Hanoi on April 16-17 to
help small-and medium-sized tourism businesses create a competitive advantage
and be fully prepared after the ASEAN Economic Community (AEC) is formed.
The workshop, run by the Pacific Asia Travel Association
(PATA) and the International Labour Organisation (ILO), provides a chance for
tourism businesses and vocational training schools to learn and practise
destination management, handicraft production and hotel management.
These practice tools have been recognised and valid in all
ASEAN countries.
General Secretary of PATA in Vietnam Dinh Ngoc Duc, who is
also head of the International Cooperation Department under the Vietnam
National Administration of Tourism (VNAT) said the manual will help trainees develop
their business plans and improve the quality of their services and
competitive edge.
The training programme particularly meets the needs of small
travel agents, homestay owners, restaurants, craftsmen, souvenir sellers and
local drivers.
It’s very important to popularize the manual, especially after
the coming into effect of the ASEAN Mutual Recognition Arrangement for
Tourism Professionals (MRA-TP) this year.
Duc suggested that participants, including local officials and
business people, share information to complete the manual and make it helpful
for tourism businesses.
Three travel booths have been opened in
The three are erected in a flower garden, by a lake, and in a
new coach station located in the heart of Sa Pa District in
The booth attendants will provide tourists with necessary
information on tourism services, hotels and restaurants, among others.
Phone numbers of the chair of the Sa Pa District People’s
Committee, head of the local police department, and hospitals are provided
outside the booths.
Leaflets featuring detailed maps of scenic spots in
The booth attendants are fluent in at least one foreign
language, including English.
The booths open from 8:00 am to 4:00 pm every day, and their
operation time will be extended during the upcoming “Sa Pa Culture-Tourism
Week,” which is slated to run from April 28 to May 3.
The district’s authorities plan to operate the booths until
the end of this summer.
The forthcoming tourism week will boast a wide array of
fascinating activities, including “Festival on Clouds,” which features ethnic
minority villagers’ traditional culture; a show displaying ethnic people’s
attire; and a “Being Farmers in One Day” program.
Other highlights will be a music performance, a cuisine fair,
stalls displaying rare flowers and ornamental plants, and an exhibition
showcasing photos on
On the week’s opening night on April 30, locals and tourists
will get treated to a gorgeous fireworks display, which will sparkle above
the banks of
The town is expected to welcome over 50,000 tourist arrivals
during the week.
Indonesia plans to takeover cement company in Vietnam
State-owned cement producer Semen Indonesia (SMGR) would
further strengthen its foothold in
SMGR’s finance director Ahyanizzaman said in
He said the company’s accountants were currently conducting a
due diligence audit of the Vietnamese company’s books and records, which
should be completed by the end of June.
“The Vietnamese company is a private business, which has a
local market share of about 4%,” Ahyanizzaman said on April 17 after the
company’s general shareholders meeting.
If SMGR goes ahead with the acquisition, it would be Semen
Ahyanizzaman said the company would borrow up to Rp 1 trillion
(US$77,742.30) to support the international expansion plan.
SMGR president director Suparni said the expansion was part of
the company’s strategy to take advantage of the ASEAN Economic Community
tariff reductions, which should come into effect by January 1 of next year.
Suparni said the company is projecting higher growth in sales
volume in the third and fourth quarters this year after posting a sales
growth of just 1.8% in the first quarter.
“We plan to export between 150,000 and 200,000 tons in the
first half. In the second half, exports will drop due to seasonal factors,”
Suparni said.
French expected to ratchet-up current investment
French firms are deepening roots in
Sanofi, a diversified global healthcare provider, recently
affirmed their commitment to developing its presence in
Fekl was in
Sanofi is a trailblazer in building pharmaceutical plants in
Last March, the firm kicked off construction of a new drug
manufacturing plant and a research and development centre in Ho Chi Minh City
with US$75 million in the total investment capital, making it Sanofi’s
largest investment project in Vietnam so far, according to Sanofi CEO Christopher
A. Viehbacher.
“With a 50-year plus track record operating in
Other members of the French delegation, such as Alstorm,
Airbus D&S, Thales and IMP Engineering all expressed interest into
expanding their presence in
Alstom, a global leader in power generation, power
transmission, and rail infrastructure is hoping to team-up with other
partners in order to spur on sustainable development city models in
The group has already been involved in a string of large-scale
projects in
International electrics and systems group Thales voiced its
intention to develop surveillance satellite systems in
The French investors’ proposals were all commended by Deputy
Minister of Planning and Investment Nguyen Chi Dung who chaired dialogue.
“Current French investment in
“
The Ministry of Planning and Investment’s Foreign Investment
Agency’s figures revealed that
Danang’s journey to sustainability
Danang leads the pack as one of the world’s fastest-growing
family and vacation destinations as its marble mountains, tranquil beaches
and authentic Vietnamese dishes continue to bring international praise.
It has also been cited as one of the world’s leading atractors
of foreign direct investment (FDI), having experienced a remarkable spike of
more than US$2.1 billion during the five-year period leading up to 2010.
However, since 2009 foreign investment has declined and in the
three months leading up to April of this year the city has reported
investment of US$3.39 million, much lower than many leading economists had
expected.
Recently, Director of the Da Nang Department of Planning and
Investment Tran Van Son,
sat down with a reporter from the Vietnam Business Forum to
explain the figures.
Most of the decline in reported FDI can be attributed to the
fact that the city is highly selective in the types of investment it
approves, as city leaders place special emphasis on environmentally friendly
projects, Son said.
Son cited a US$200 million textile investment by Textile and
Garment Group (
Similarly, in the second quarter of 2014, a Korean company was
seeking over 30 ha for its textile dyeing complex but the authority also
turned it away and helped them find another province in the region to locate
the project.
Earlier, the city rejected two billion-dollar each steel
projects because of environmental issues, Son said but facilitated them
finding other more appropriate cites for their business ventures.
It is clear from Son’s interview that the city doesn’t have a
problem attracting investment per se, it is just that the city is having
problems courting the type of investment it desires into target industries
like aerospace, supporting industries, tourism, trade, logistics and
healthcare.
The city continues to benefit tremendously from the FDI it has
received in the past Son said, adding that there are many promising
opportunities on the front burner with big firms like Airbus, Safran, KAI,
Mitsubishi Industry and Apple.
Lam Quang Minh, director of the Da Nang Investment Promotion
Centre recently expressed the same views as Son saying the city has in recent
years turned away many foreign investments that are not environmentally
friendly.
It is a pragmatic approach toward conservation, observed Minh.
There are those that have suggested only wealthy cities can be green and
environmentally sustainable but for Danang it is the other way round.
City leaders are looking to make Danang a prosperous
strategically located port and tourism destination and to accomplish that end
it needs to attract clean and environment-friendly businesses.
The city is doing well economically because it is
environmentally conscious. This consciousness is very much in policy making,
land use planning and community engagement and is essential for Danang to be
a liveable city with a sustainable economy
Factors such as the slow recovery of the world’s economy and
weak purchasing power of the Dong have certainly contributed to an overall
decline in investment but those factors are beyond the control of city
officials and it does not mean we should lower our standards for investment.
Thai Ba Canh, deputy head of the
Canh said the management board is implementing a one stop
registration process to streamline the process of obtaining an investment
certificates and, in addition, has begun to more aggressively seek new high
tech investment.
Nguyen Bieu, Director of the city’s Department of Natural
Resources and Environment said several investors abandoned coastal projects
that had been approved and the department is now in the process of reclaiming
hundreds of hectares of coastal land.
In all likelihood the investors lacked sufficient financial
capacity to complete the project and this land can now be reclaimed and put
to better use. It is a waste just to let it set undeveloped.
For his part, Phung Tan Viet, municipal People’s
Committee Vice Chairman said the city is focused on implementing five major
solutions to attract investment in line with the strategy of high-quality and
high-tech industry.
We have had much success with attracting investment and we
have progressed. There is much more to do, but there is no hallmark of
success more distinctive or meaningful to achieving the position as the
cleanest and greenest city in Southeast Asia.
Pundit calls for new approaches to keep Vietnam automotive
industry alive
Vietnam still has opportunities to save its automobile
industry from a collapse following an announcement of Toyota that it may stop
assembling vehicles in the Southeast Asian country to switch to imports in
order to enjoy the preferential taxes of an ASEAN trade pact, a local expert
has remarked.
Dao Phan Long, vice president and secretary general of the
Vietnam Association of Mechanical Enterprises (VAMI), told Tuoi Tre (Youth)
newspaper in an article published on Monday that the country should have the
resolve to move on and find out the right solution to the problem of a
possible ‘disaster’ after Toyota has publicly announced its intention to take
advantage of future cuts in taxes on ASEAN vehicles.
Early this month Yoshihisa Maruta, president of Toyota Motor
Vietnam, the Vietnamese unit of the world’s largest carmaker, said the firm
is mulling over putting an end to production and switching to imports in
order to enjoy the preferential tax treatment an ASEAN trade pact will offer
in the next three years.
ASEAN stands for Association of Southeast Asian Nations,
including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei,
Cambodia, Laos, Myanmar, and Vietnam.
According to the road map of the ASEAN Free Trade Area,
automobiles under ten seats imported from ASEAN countries are entitled to a
50 percent rate this year. The rate will be cut to 40 percent next year, 30
percent the following year, and 0 percent in 2018.
Regarding a Tuoi Tre question on the fact that though Vietnam
has supported the automobile industry for years, many still complain that its
policies, with some unreasonable, have been continually changed, Long
answered that the main beneficiaries of the policies in the past 15 years
have been foreign-invested enterprises (FIEs).
Though receiving many privileges, those FIEs always complain
that Vietnam is a small-sized market with inconvenient and insufficient
transport infrastructure, which has resulted in low sales.
FIEs have moaned that it is difficult for them to raise the
localization rate as they committed earlier, Long said.
Vietnam then asked those firms to raise the localization rate,
but the way the country has done it is wrong.
“Instead of offering tax incentives to those who can make
certain kinds of spare parts and accessories in Vietnam in large amounts that
will both meet local demand and be enough for export, we have requested them
to raise the localization rate in producing thousands of kinds of spare parts
just for the local market,” the VAMI secretary general said.
“In my opinion, what we should do now is pick some good
domestic firms to help them become stronger and develop well-known brand
names, while restructuring the sector to reduce those operating
inefficiently,” he said.
Regarding the question that the Vietnamese government should
halt the protection of the local automobile industry, Long said even some
industrialized countries having participated in many free trade agreements
(FTAs) for a long time still maintain many measures to keep the market for
local businesses through the erection of technical barriers.
“Joining the World Trade Organization or other FTAs does not
necessarily mean that a large part of the local share will be dominated by
FIEs. The problem is that we need a system of solutions for maintaining the
market share for local firms without breaking the rules of those trade
pacts,” he said.
As to what policies can be introduced to support the ailing
industry, Long said some local enterprises have recently focused on certain
niches of the market like the segment of buses, passenger cars, light trucks,
and medium trucks.
But according to the ASEAN road map, importing Chinese-made
trucks, or completely build units, especially those of 10 metric tons or
more, will be cheaper than purchasing components for domestically assembling.
As Vietnam has issued a master plan for the development of the
automobile industry, including encouraging the growth of light trucks,
passenger cars, and buses, it must focus on that and create policies that can
be effectively implemented, Long said.
With the advantage of a few years left for complete tax
reduction as committed, Vietnam can support a number of local firms in
promoting their brands and create a production capacity to serve a 100
million people market, as the local population has already hit the 90 million
milestone.
When Vietnamese firms are capable of making light trucks,
passenger cars, and buses, Vietnam should move on to make passenger vehicles
under nine seats, the VAMI vice president said.
“In my opinion, local firms currently have many advantages in
the segments of buses, passenger cars, light trucks, and medium-duty trucks,
and the cost for transportation from other countries to Vietnam will make
their price higher than locally assembled vehicles,” he added. “We have
successfully assembled them domestically and have gained a market share that
is large enough for development.”
Some Vietnamese businesses have built a strong brand in the
car assembling industry and the country still has money for further
investment in boosting manufacturing, Long said, adding that the state should
have the right solution for encouraging and protecting domestic firms.
Truong Hai Auto (Thaco), based in the central province of
Quang Ngai, earned thousands of billions of Vietnamese dong in revenue and
created jobs for about 8,000 workers in poor and rural areas in the central
region in 2014 after having assembled light trucks for many years.
Thaco has managed to find appropriate steps for effective
investment, seek good partners, look for models that can sell well in
Vietnam, and even accept losses, he said, noting that with some incentives
from the government, the firm can be now considered a success story.
Long said that it is time for the Ministry of Industry and
Trade, as the body supervising manufacturing, and other relevant agencies
work together to promulgate stable and coherent policies.
“I emphasize here consistency and stability. We should avoid
getting stuck in such paradoxes as one ministry encourages the development of
the auto industry, while others have policies that hinder its growth,” he
added.
Insurer Bao Viet targets $45 million annual profit
Insurer Bao Viet Holdings is targeting a consolidated revenue
of over VND 18.9 trillion (US$879 million) this year, including an after-tax
profit of VND1.14 trillion ($45 million).
The target was agreed upon at its shareholders at the Annual
General Meeting on April 17.
The target was reduced in comparison with last year's figure,
which touched more than VND1.3 trillion ($60 million).
The group's leaders explained that the target was set lower
than last year's figure because the economy was forecast to have many
disadvantages.
Besides, the group will focus on finalising policies and
boosting financial capacity this year by raising its charter capital.
In 2014, the consolidated revenue of the group was estimated
to touch VND18.6 trillion ($865 million), the consolidated pre-tax profit had
reached VND1.5 trillion ($69 million), and the consolidated net profit had
reached VND1.2 trillion ($55 million).
By December 2014, the parent company of Bao Viet Corporation
estimated the amount of equity at VND11.5 trillion ($534 million). Total
revenue from the parent company was estimated at VND1.3 trillion, the profit
after tax was expected to touch VND1.1 trillion ($46 million).
As the leading financial–insurance group in Viet Nam, Bao Viet
Holdings currently focuses on three main pillars: insurance, investment and
financial services, with its wide distribution network throughout 63
provinces in Viet Nam and more than 160 branches across the country.
Foreign buyers eye Masteri Thao Dien project
Foreign buyers from Japan, South Korea, Singapore, and the UK
are falling for apartments in the Masteri Thao Dien project in Ho Chi Minh
City.
Masteri Thao Dien offers good quality apartments as well as a
pleasant surroundings
The increased interest has been driven by the amended Law on
Housing which comes into effect on July 1, granting foreigners improved
property rights.
Located in Thao Dien ward, District 2 with its front gate
facing on to the Hanoi Highway, the Masteri complex consists of high-end
apartments, a shopping centre, offices for lease, parks, lakes, swimming
pools, a sports centre, and a playground.
The eight-hectare site gives residents a stunning view of the
District 1 skyline to the west and natural surroundings to the east. This
breathtaking living space provides great natural light and is built to catch
cross breezes off the nearby Saigon River.
According to Masteri Thao Dien business director Trinh Hoai
Duc, foreigners have visited mock-up apartments, inspected the quality, and
reviewed the legal documentation for the project.
“Foreigners are interested in quality of life issues and are
keen on having space and a natural environment. Moreover, the project is directly
connected with metro line1 linking Ben Thanh to Suoi Tien, which is another
positive factor in the project’s value,” said Duc.
The site will also house the VND3,500 billion ($164 million)
Vincom Mega Mall Thao Dien developed by the Vingroup. This will be the
biggest shopping centre in the east of Ho Chi Minh City and will be directly
connected to the An Phu metro station, which is slated to go into operation
in 2018.
Techcombank will act as project underwriter and the bank will
ensure that should the project not be completed on schedule that all costs
for the buyers, including deposits, interest, and related fines will be
covered.
Techcombank will also ensure the release of capital flows
based on the project’s progress.
According to Richard Brown, a potential buyer from the UK,
foreigners were keen to avoid unnecessary legal entanglements. “Foreigners
obviously appreciate when the developer’s responsibilities are clearly
regulated and the legal regulations and the buyers’ rights are ensured by a
bank,” Richard said.
“The fact that developers are starting to do that obviously
increased confidence,” he added.
Masteri Thao Dien’s developer – Thao Dien Investment – has
also co-operated with leading Vietnamese law firms to issue legal
descriptions, and contracts are available in English in order to ensure fair
rights for foreign buyers.
The recently-amended Law on Housing has opened up a
potentially lucrative opportunity for real estate agents to attract
foreigners.
According to official figures, more than 80,000 foreigners are
living and working in Vietnam.
Market analysts optimistically assume that this will bring in
an additional source of foreign currency to Vietnam, increase liquidity in
the real estate market, as well as improve the business and investment
environment in Vietnam in the international investment cycle.
This new situation will provide a new challenge for domestic
investors who will need to up their game and provide better and clearer legal
support as well as higher quality products for this more quality-conscious
market segment
“Foreign buyers aren’t just interested in good quality
developments; they require transparent legal information on the status of a
project and clearly set out responsibilities and commitments for the
developers,” said Duc.
Q1 remittances to HCMC hit US$1.2 billion
Incoming remittances via HCMC-based banks were estimated to
reach US$1.2 billion in the first quarter of 2015, rising by 12% from the
same period last year, according to the central bank’s HCMC branch.
Nguyen Hoang Minh, deputy director of the central bank’s HCMC
branch, said the real figure may be higher. Given positive growth of the
local economy, more overseas Vietnamese sent money home for investments and
there were more Vietnamese sent to foreign countries for guest work.
The remittances mainly came from the United States, Europe,
South Korea, Australia and ASEAN countries, and flowed into manufacturing and
real estate sectors in the period, Minh said.
Normally, the incoming remittances sent home via HCMC account
for 40-50% of the nation’s total. Remittances from Vietnamese guest workers
make up 20-25% and the remainder is from overseas Vietnamese.
Last year, the city registered more than US$5 billion worth of
remittance inflows.
According to the Foreign Labor Department under the Ministry
of Labor, Invalids and Social Affairs, Vietnam sent around 25,700 workers
aboard in the first three months of this year, up 10.7% year-on-year. The
number was over 100,000 last year.
The increasing number of Vietnamese guest workers abroad has
also helped raise incoming remittances in recent years, from around US$2.2
billion in 2013 to US$2.5 billion in 2014.
Vu Hong Nam, Deputy Foreign Minister and chairman of the State
Committee for Overseas Vietnamese Affairs, told a seminar in HCMC early this
year that last year’s incoming remittances to Vietnam were around US$12
billion, or 8% of the nation’s gross domestic product (GDP). Of the figure,
46% went to production and business, 36% for spending and the remainder for
savings and medical treatment.
The nation has seen remittance growth of around 10% annually
in recent years and HCMC always holds a lion’s share, Nam added.
A leader of the central bank estimated this year’s incoming
remittances at around US$13-14 billion.
He said the amount is counted via incoming remittances at
banks and it is difficult to calculate the money sent home via unofficial
channels. Therefore, the real remittance figure must be higher.
Stable remittance inflows have contributed to stabilizing the
exchange rate in the country in recent years, he said.
According to the Central Institute for Economic Management
(CIEM), remittances were the second biggest source of capital in Vietnam
after foreign direct investment (FDI) capital between 2007 and 2013. The
source was even higher than official development assistance (ODA) inflows.
Incoming remittances amounted to over US$90 billion in
1991-2013, according to CIEM.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 21 tháng 4, 2015
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