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BUSINESS IN BRIEF 20/6
Petrol
up VND275 per litre
The
retail prices of petroleum and biofuel E5 RON 92 increased by VND275 per
litre to VND20,711 (US$0.95) and VND20,381 ($0.94) per litre, respectively,
from 3pm yesterday.
The
Ministry of Industry and Trade and Finance Ministry said the prices of other
items have reduced, including diesel, by VND287 per litre; oil (VND275 per
litre); and mazut (VND423 per litre).
Accordingly,
diesel costs VND16,077 ($0.74) per litre; oil comes for VND20,381 ($0.94),
and mazut is priced at VND12,730 ($0.58) per litre.
In
addition, the two ministries also decided to keep the spending on price
stabilisation fund unchanged for petrol at VND1,047 and E5 at VND882 per
litre.
The
ministries noted that global petrol prices were still at a high level. The
average price of petroleum in the world market in the past 15 days was
$82,426 a barrel; $74,970 for a diesel barrel; $74,658 per oil barrel, and
$364,664 per tonne of mazut.
The
latest petrol price adjustment was on June 4. The prices of petrol RON 92,
biofuel E5 and mazut remained unchanged in comparison with May 20. The prices
of oil and diesel reduced by VND380 and VN20 per litre, respectively.
Gov’t
resolution on improving business environment reviewed
Representatives
from ministries, business associations and experts gathered at a conference
in
Director
of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung said
the event aims to evaluate the progress of the resolution and collect
recommendations on addressing obstacles during implementation to be submitted
to the Prime Minister.
Representatives
from the CIEM Department for Business Environment and Competitiveness held
that remarkable improvements have been seen in business start-up procedures
since last year.
The Law
on Enterprise 2014 allowed firms to finish their business registrations in
three days instead of six, as set by the Resolution, while the investor
protection index was raised by 105 spaces, reaching the average level of
ASEAN countries, they noted.
Meanwhile,
Vietnam remained slower than other ASEAN countries in terms of power access
despite a 12-space rise last year, while a similar situation is occurring in
tax and social insurance payments despite a 27-space improvement.
A
stagnant point in the implementation of the resolution is the duration of
resolving bankruptcy and business dispute procedures, they added.
As
scheduled, ministries and localities should have issued a plan of action to
realise the resolution by the end of April this year. However, the Ministry
of Planning and Investment reported that so far, it has received plans from
only 11 ministries and 11 localities. The other 14 ministries and 52
localities have failed to finish their plans on time, including
Furthermore,
the submitted plans have not clarified specific measures and targets.
During the
conference, participants also proposed that relevant ministries promptly
review regulations on import and export goods to reduce time and costs for
businesses during customs clearance process.
They
also asked for guidelines in meeting technical standards from a number of
strict markets.
Ha
Tinh appeals for Japanese investment
The
central
The
meeting, attracting local authorities, agencies and over 50 Japanese
enterprises, afforded them an opportunity to learn more about local strengths
and incentives if they decide to invest in the province.
In
recent years, Ha Tinh has attracted a huge volume of foreign investments due
to its dedication to a transparent business environment, with a focus on
simplified administrative procedures.
Furthermore,
it boasts a contingent of qualified and young workforce and an convenient
transport infrastructure. The province currently ranks sixth in terms of
foreign investment attraction.
Over
2,000 Japanese businesses are currently operating in
According
to the provincial Department of Investment and Planning, the province has
licensed 361 projects valued at more than 425 trillion VND (20.2 billion
USD), 306 of them worth 3.6 billion USD are registered domestically and the
remaining are FDI projects worth 16.5 billion USD.
At
present, more than 10 countries and territories operate businesses in Ha
Tinh, including
Banks
raise dong deposit rates to improve liquidity
Some
mid-sized commercial joint stock banks recently raised interest rates on
short-term dong deposits amid rising credit demands.
HDBank
has increased its rates by 0.3 percent to 5 percent per year on one-month
deposits, 5.7 percent on terms between six and 11 months, and 6.5 percent on
deposits above 12 months.
DongA
Bank pushed its interest rates by 0.1-0.3 percentage, while deposit rates at
Eximbank were revised by 0.2-0.4 percentage.
The rise
came a few weeks after some large lenders such as Agribank and ACB announced
increases in their interest rates on long-term dong deposits to improve
liquidity amid the pressure of a stronger US dollar.
Interest
rates on deposits above 12 months are currently one percentage higher than
the deposits for other terms.
Attempting
to lure depositors, private commercial joint stock banks are currently
offering interest rates of roughly 0.8 percent higher than that by
State-owned commercial joint stock banks.
According
to Tuoi tre (Youth) newspaper, Truong Van Phuoc, Vice Chairman of the
National Financial Supervision Commission (NFSC), noted that banks had raised
interest rates to improve liquidity and it was a normal practice and not a
basis for them to hike lending rates accordingly.
Financial
expert Nguyen Tri Hieu observed that although inflation remained stable, with
CPI in May rising 0.16 percent over the previous month and up 0.95 percent
year-on-year, a stronger US dollar recently affected capital mobilisation as
some people withdrew their dong savings to buy the dollar; hence, banks had
to raise dong deposit rates to attract capital.
The NFSC
last month said that deposit rates were under pressure and set to rise as the
growth rate of deposits had been lower than that of credit.
The
total deposits rose 0.98 percent in the first quarter, while the total
outstanding loans increased 1.7 percent, in which outstanding loans in dong
climbed 2.4 percent and outstanding loans in foreign currencies dropped 0.9
percent, NFSC said.
As a
result, the loan-to-deposit ratio rose to 84 percent from 83 percent in
December 2014, of which LDR in foreign currencies climbed to 87 percent from
83.4 percent at the end of 2014, the NFSC reported.
Experts
said that the deposit interest rate rise was a positive signal as it showed
that capital demands were recovering.
According
to statistics from the State Bank of
Heat
wave heats up air-con market in
Major
electric appliance retailers in
According
to a salesman at BigC Thang Long, consumers prefer misting fans this year,
which suit their need for power saving and cooling without skin drying
effect.
The
misting fans, mainly by Sunhouse, Kangaroo and Omec, are sold for between 1-3
million VND (46 – 138 USD).
The
retailer has also offered various promotional deals to fuel sale.
Store
owners along Tran Duy Hung, Le Van Luong and Nguyen Chi Thanh streets said
products vary in design and come with additional functions, while price
competition among manufactures proves to benefit customers.
Air-conditioner
sale at Tran Anh electronics retailer in
Pico’s
Marketing Manager Vu Thi Ngoc Hue noted that air conditioners with inverter
technology designed to save up to 50 percent of energy has been on high
demand despite its relatively high price.
Because
of the strong demand, some stores are finding themselves short of goods as
well as technicians and delivery people.
Vietnam
joins int’l trade fair in Venezuela
Vietnamese
traditional handicrafts and products were showcased at a recent international
trade fair in
The Gran
Bazar Kermesse Benefecico 2015 was co-organised by the diplomatic mission in
The
event was to introduce the beauty of
It also
features economic and trade potential of other member countries of the
Association of Southeast Asia Nations (ASEAN).
PVcomBank
to sell bad debt to VAMC
The Viet
Nam Public Bank plans to sell bad debts worth VND1.5 trillion (US$71.43
million) to the Viet Nam Asset Management Company (VAMC), while handling
VND600 billion ($28.57 million) itself.
The
bank, also called PVcomBank, has announced the scheme in documents to be
released at a shareholders' meeting, which will be held in Ha Noi on June 20.
Last
year, the bank sold some VND1.98 trillion ($94.28 million) in debts to the
VAMC, recovered VND55.7 billion ($2.65 million) with its provisional funds
and transferred some VND114 billion ($5.42 million) to other organisations
and individuals.
PVcomBank's
bad debt ratio was 2.67 per cent at the end of 2014, falling by 1.75
percentage points from the figure recorded at the end of 2013. The capital
adequacy ratio reached 11.35 per cent, higher than the 9 per cent stipulated
by the State Bank of
Last year,
the bank obtained VND7 trillion ($333.33 million) in turnover, about 37 per
cent higher than the annual target. It gained VND130 billion ($6.19 million)
in pre-tax profits, exceeding the targeted figure by VND1 billion ($47,600).
PVcomBank
has VND100 trillion ($4.76 billion) in total assets and VND9 trillion
($428.57 million) in charter capital. The Viet Nam Oil and Gas Group owns 52
per cent and strategic shareholder Morgan Stanley holds 6.7 per cent of the
bank's equity.
Maize
imports rise as rice exports fall
Maize
imports in the first five months of 2015 are on the rise but rice exports are
on the decline, according to figures from the Ministry of Agriculture and
Rural Development.
The
country also imported 700,000 tonnes of beans and other materials for
processing of animal feed worth nearly $1.4 billion.
Meanwhile,
exports of rice from
In all,
the value of imported animal feed and other materials for the food processing
industry in the first five months amounted to nearly $2.3 billion, nearly
triple the total value of rice exports over the same period.
Authorities
have been urged to re-structure the country's planting systems, aiming to
reduce material imports while easing the pressure on rice consumption.
The
programme to re-structure rice plantation to other crops including maize
began in 2013 when the country's rice exports were stagnant.
However,
the programme has faced challenges in many localities across the country.
The
slump in the world's farm produce prices, including maize prices, has caused
local agricultural products to be less competitive than imported goods.
Maize
prices have dropped to less than VND5,000 per kg since the end of 2014,
making maize growers' profits lower than rice growers'.
It has
forced many farmers to return to rice cultivation.
Huynh
The Nang, chairman of Vietnamese Food Association, said that global demand
for rice had changed greatly compared to five to 10 years ago. Rice growing
countries have increasingly raised their output, while rice buyers have also
been promoting rice production.
"It's
time for Viet Nam to re-consider rice production and exports with an aim to
raise the added value of this product and a bigger effort to change rice into
more necessary crops," he said.
Unfinished
resorts occupy beaches in
What are
beaches for but sunbathing and swimming? The answer you get from some resort
developers in the central city of
Many
developers have tried to obtain land plots along the beautiful beaches in the
central tourism hub with promising resort projects, but what they actually do
is turn them into construction sites that never seem to be finished.
The
30km-
In 2005
Hai Duy JSC and Invesco, two companies based in
The
30-hectare project, with a registered capital of US$30 million, is expected
to become a paradise for tourists. But the best the developers could do in
building the “heaven” is a block of houses and an artificial lake behind a
dull brick wall.
Many
other resort projects, including Sontra Travel, Anvie Danang, The Song –
Danang Beach Villas, and Non Nuoc Resort, are also occupying dozens of
hectares along the
In the
meantime, these unfinished construction sites are blocking the way to the
beaches from locals and tourists. They thus have to flock to a few public
beaches, leaving these places overcrowded.
There
are currently 18 sluggish resort projects dotting the beaches in
“
“We have
also repeatedly issued ultimatums to them but things remain unchanged.”
Dieu
said the developers refuse to complete their seaside projects not only because
of the frozen realty market, but also the unstable tourist arrival numbers.
He also
admitted that some developers are waiting for the right time to transfer
their projects, or the land plots they are allocated.
These
developers, however, will be dealt a tougher hand in the future, Tran Tho,
secretary of the city’s Party Committee, underlined.
“Whenever
we threaten to take tough measures, the companies criticize us for not
sharing their hardship, but our tolerance is limited,” he said.
“It is
unacceptable that they get the land and wait for the chance to transfer it
[to reap profits].”
Da Nang
will inspect all of the seaside projects in the city and will strictly punish
developers who misuse or do nothing to the land plots they are assigned.
“Legally
speaking,
“A
company will lose the land it is granted if it fails to do what is committed
in the investment license.”
Economy
minister urges decriminalisation of economic violations
Minister
of Planning and Investment Bui Quang Vinh has urged the National Assembly not
to criminalise economic and civil relations as the legislature discussed
changes to the Penal Code on June 16.
Minister
Vinh said he supports the removal of two crimes, doing illegal business and
intentionally violating State regulations on economic management, from the
current Penal Code, considering them as obstacles to economic development.
He
reiterated the spirit of the 2013 Constitution in which citizens are
permitted to be involved in any business not banned by law which was
concretised in the new Investment Law adopted last year reducing the number
of banned trades from 51 to just six.
He said
that the inclusion of the two crimes are impeding business innovations and
discouraging investors from pouring money into new potential investment
opportunities.
The
minister added that however open the economic laws are, no one can do
business if the criminal law is restrictive and obscure, emphasising that
this matter is crucial to the wealth and development of the country.
In other
matters, the majority of NA deputies endorsed limiting capital punishment in
three areas: reducing offences punishable by death, imposing stricter
conditions on death sentences and increasing the number of exemptions for
those on death row.
According
to draft amendments, seven crimes will be removed from the current list of 22
crimes subject to capital punishment, including undermining peace, provoking
conflict and international war; and crimes against humanity as well as war
crimes.
However,
Deputy Bui Ngoc Chuong from Ca Mau province stated that the above-mentioned
crimes should not be removed as they are extremely serious and must be
punished in line with the seriousness of the crime.
A number
of deputies also asked to retain drug trafficking in the capital punishment
list as removing it will encourage immoral acts and open the way for drugs to
be trafficked into the country.
January-May
auto sales grow strongly
More
than 84,800 autos were delivered to customers in
An
updated report of VAMA showed that auto firms sold nearly 18,000 vehicles
last month, jumping 47.7% year-on-year.
Sales in
all auto segments surged in the period, with passenger cars rising 88%
year-on-year, commercial vehicles soaring 103% and special-use vehicles
climbing 116%.
The
January-May period saw sales of imported completely built-up (CBU) autos
soaring 109% and domestically-assembled cars advancing 104% compared to the
year-ago period.
VAMA
member enterprises reported good sales in the first five months of this year.
For instance, Ford
Truong
Hai Auto Corp. (Thaco) sold 27,900 vehicles in the period, rising 94% against
the same period last year. With the sales volume, the company led the
domestic auto market with a 37.3% share.
Luxury
cars also sold well from January to May.
Industry
insiders forecast car consumption would reach 200,000 units this year as
demand would pick up at year-end if there were no auto consumption tax and
fee changes as seen in previous years.
In 2009,
Minister
Hoang: Underground economy does exist
An
underground economy does exist in the country, Minister of Industry and Trade
Vu Huy Hoang said last Friday after having avoided discussing this matter in
previous days.
Hoang
beat around the bush when deputy Mai Huu Tin of Binh Duong Province last
Friday again asked whether Vietnam has an underground economy or not, a
question which went unanswered several days before.
Deputy
Ngo Van Minh of
Last
year
Minister
Hoang did not go straight to the point, though. He talked a lot about the
existence of different trade data between
And when
he began explaining the huge difference between trade data announced by
Hoang
admitted, “Certainly, there is smuggling and certainly there is an
underground economy.”
That is
why
MoIT
optimistic on trade with Japan
Vietnam’s
combined imports and exports to Japan is forecast to reach US$30 billion in
2015, an increase of US$2 billion when compared against last year, according
to Ministry of Industry and Trade (MoIT).
Notably,
Le An
Hai, deputy head of the Asia-Pacific Market Department of the MoIT affirmed
Conference
seeks financial support measures for SMEs
Enhancing
financial support for small- and medium-sized enterprises (SMEs) businesses
was the main focus of a conference held by
During
the event, experts said it is increasingly difficult to solve issues related
to capital for enterprises, as almost all Vietnamese companies operate at
small and medium scales.
Vice
Chairman of the Association Pham Ngoc Hung said his agency carried out a
survey of business awareness of Vietnam’s integration process, which produced
alarming results as almost all interviewed firms stated they are concerned
about issues related capital, trade barriers and markets if Vietnam
integrates deeply into the global economy.
Assessing
Vietnam’s economic development situation in the first months of the year,
experts said the country saw signals of recovery in its economy, as its real
estate market rebounded, enterprise production and trade was prosperous and
the country’s import-export activities reaped good results.
However,
Vietnamese businesses, especially SMEs, are meeting with challenges in
catching up with the integration process and expanding their markets abroad.
According
to Nguyen Manh Tue, a representative from the HCM City Department of Industry
and Trade, the municipal authorities have conducted a wide range of
activities to assist local businesses to access capital sources, such as
organising dialogues between firms and management agencies and connecting
enterprises with banks in the locality.
During
the last three years, thanks to linking activities, businesses in the city
signed loan contracts worth 120 trillion VND (5.5 billion USD) with local
banks.
Chinese
firms interested in purchasing bulk Vietnamese farm produce
The
China Business Association in Ho Chi Minh City has expressed its interest in
being a bridge for home firms to import farm produce in bulk from the Mekong
Delta city of Can Tho, its President Miao Ren Lai told Can Tho authorities in
a working session on June 17.
China
consumes a major volume of farm produce from Vietnam and the Mekong Delta in
particular, especially fruit. However, most transactions are made
cross-border putting Vietnamese farmers at risk, including price loss and
contract violations.
For the
Chinese side, imported farm produce through cross-border channels have failed
to meet Global GAP or origin certifications, leading to hesitant consumers.
To
address the problem, Miao urged municipal authorities to facilitate Chinese
investment in the locality, making it easier for the two sides to sign
high-value trade contracts via formal channels.
Chairman
of the municipal People’s Committee Le Hung Dung said there are only three
Chinese businesses operating in Can Tho, a modest figure compared to
bilateral economic potentials.
Besides
farm produce, he also proposed cooperation in garment and transport
infrastructure.
Can Tho
is building three hi-tech agriculture complexes in Co Do and Thoi Lai
districts at a total cost of 44.1 million USD, he added.
Vietnam’s
tuna exports to Russia see 218.4% growth in four months
Vietnam’s
tuna exports to Russia boasted strong growth in the first four months of 2015
as export value reached US$1.65 million, up 218.4% year-on-year, according to
the General Department of Vietnam Customs.
Frozen
tuna loins (HS0304) remained the most exported product with a value of
US$1.58 million, accounting for 95% of the total turnover.
Vietnam
also began exporting fresh chilled tuna to Russia this year achieving a
four-month export value of US$66,700
From a
small import market in 2014, Russia has become the ninth largest importer of
Vietnamese tuna in early 2015.
The free
trade agreement (FTA) signed with the Eurasian Economic Union on May 29, with
an import tariff pledge of 0% for all imported seafood items, will open up
numerous opportunities for Vietnamese seafood to enter this market, including
Russia.
Besides
Russia, Vietnam also saw growth in its tuna exports to the US (US$58.2
million, up 3.3%), ASEAN (US$10.06 million, up 13.8%) and Mexico (US$3
million, up 91.7%).
As shown
in statistics from the International Trade Centre, Vietnam was the third
largest tuna exporter to Russia in the first quarter of 2015, behind Thailand
and China.
Jobs
to be provided as new plant erected in Hau Giang
An
apparel-making plant, whose construction began in the Mekong Delta province
of Hau Giang on June 17, is expected to create 4,000 jobs for locals once it
becomes operational.
Nha Be,
a major player of the Vietnamese textile and garment industry and the plant’s
owner, revealed the news, adding that this is one of the company’s key
projects to enhance its competitiveness.
The
plant, built at cost of more than 300 billion VND (13.8 million USD), covers
six hectares in Vi Thanh City.
It is
designed to turn out 30 million high-quality garments annually catering to
domestic and international markets, particularly the US and European
countries, with estimated revenue of over 120 million USD each year.
The
plant will go into operation in September.
Int’l
exhibition on fertiliser, pesticides to be held in HCM City
A
variety of fertilizer brands and plant protection products will be showcased
in Ho Chi Minh City, the organising board said on June 17.
The
two-day Agro Vietnam 2015, which opens on July 16, is expected to see the
attendance of more than 60 exhibitors and 2,500 visitors.
The
event is co-organized by the Minh Vi Exhibition and Advertisement Services
Company (VEAS), the China Crop Protection Industry Association (CCPIA) and
the China National Centre for Information on Chemical Substances.
It is
expected to serve as a bridge connecting domestic and international
enterprises investing in the fertiliser and pesticides sector in the
Vietnamese market.
Nguyen
Xuan Hong, Director of the Department of Plant Protection under the Ministry
of Agricultural and Rural Development (MARD) highlighted the demand for
pesticides in Vietnam’s agricultural production.
He urged
enterprises to invest in chemicals to make ripen fruits and preserve
agricultural products.
Meanwhile,
Tran Xuan Dinh, Deputy Director of the Department, said incentives will be
offered to fertiliser importers to meet domestic demand.
A number
of workshops will be held during the event to provide information on relevant
regulations of the sector to potential investors.
According
to the MARD, Vietnam has a demand of some 11 million tonnes of fertilisers
for agricultural production.
In 2014,
the country imported about 4 billion tonnes of fertiliser, worth 1.3 billion
USD.
BIDC
revenue climbs 27%
The
revenue for the Bank for Investment and Development of Cambodia (BIDC) for
the five months leading up to June climbed 27% on-year, according to Nguyen
Dinh Duong, the bank’s general director.
BIDC, a
wholly owned subsidiary of BIDV, managed to achieve pre-tax profits of US$5
million for the January-May period with its total assets climbing to US$670
million as of May 31, Duong said.
Much of
the banks success can be attributable to the company’s commitment to
community development and its support of social welfare programs to help the
Cambodian people improve their living conditions.
Popular
consumer goods see Q1 growth
Sales of
fast-moving consumer goods (FMCG) grew 3.4 percent in volume and 4 per cent
in value in the first quarter of the year compared to the same period last
year in six key Vietnamese cities.
The
growth was seen in Ha Noi, HCM City, Hai Phong, Can Tho, Nha Trang and Da
Nang, according to the latest report from marketing research company Nielsen.
Beverages
were the key category driving the growth recovery, but categories such as
food and home care also showed signs of recovery in first quarter.
However,
retailers interviewed by Nielsen remain cautious about the future, despite
recorded growth.
The
report also found that more than 80 per cent of FMCG sales in Viet Nam still
come from traditional trade channels which include around 1.3 million FMCG
stores across the country.
Only 30
per cent of the traditional stores contribute to the top 80 per cent category
sales.
Therefore,
to win in this traditional-trade dominated market, manufacturers must
identify the right stores to target; not an easy feat in such a large,
dynamic and ever-changing retail market, according to Nielsen.
In
addition to the complexity and number of traditional stores, the power to
make or break a brand or product lies with traditional retail store owners.
Just 70
cent of traditional retail stores comply with manufacturers request to stock
their products.
Of the
brands most supported by Vietnamese retailers, Hao Hao, Vinamilk &
Coca-Cola are the top three supported brands by retailers, with more than
half of store owners indicating they will stock these products more, and
recommend the products to shoppers.
Nguyen
Huong Quynh, executive director of Retail Measurement Services of Nielsen Viet
Nam, said that "despite growth of FMCG, our own Retailer Confidence
Index was only 71, which shows that retailers are still hesitant. Therefore,
to win retailers' hearts is not easy at all."
"Retailers
are mainly concerned about what directly impacted their business, such as
extra stock, margin, and customer services support," he said. "It's
critical therefore for manufacturers to completely understand those concerns,
identify the right stores to target and ensure that retailer comply and stock
their products in-store throughout the year. "
"This
requires a combination of different strategies based on retailer and shopper
understanding, to build a picture of success for sales to execute in the
market," she said.
Faced
with the challenge of winning retailers' hearts and loyalty, Nielsen suggests
that manufacturers should focus on identifying the target stores and
executing in-store (pricing, assortment, trade activity, in-store
communication).
Vinatea
IPO to reserve 64% for strategic investors, 4.4% for staff
State
utility Viet Nam National Tea Corporation will launch an initial public
offering (IPO) within three months under an equitisation plan newly adopted
by Prime Minister Nguyen Tan Dung.
The
company, also known as Vinatea, has a charter capital of VND370 billion
(US$17.62 million) and will issue 37 million shares for the IPO. Each share
has a face value of VND10,000 (US$0.48).
A stake
of 63.74 per cent will be reserved for strategic shareholders, while more
than 31.86 per cent of the equity will be sold to general investors, and
nearly 4.40 per cent to employees. This will mean that the State will retain
no capital in the company.
The
Prime Minister has authorised the Ministry of Agriculture and Rural
Development to select a stock exchange and a brokerage and set an initial
price for the share auction, as well as guide the company to implement the
bid.
He also
asked this agency to collaborate with the ministries of Finance and Labour –
Invalids and Social Affairs to review the company's staff arrangement
schemes. The firm currently has some 1,320 employees and will curtail this
number to 1,180 when it is privatised.
Vinatea
will also issue additional shares to increase its charter capital in the
future, according to the equitisation plan.
The Ha
Noi-based firm has three subsidiaries: two affiliates in the northern Yen Bai
Province and a business in Moscow, Russia.
Vietcombank
to pay ten per-cent dividend
According
to the Viet Nam Securities Depository, JSC Bank for Foreign Trade of Viet Nam
(Vietcombank or VCB) will pay the ten-per-cent dividend for last year on July
30.
VCB
decided to pay its dividend for last year in cash, which is VND2.66 trillion
(US$123.4 million), equal to 45.35 per cent of last year's after-tax profit
of VND5.87 trillion.
After
deducting the dividend and increases to its budget, VCB has VND374 billion
($17.3 million) in unreserved capital. The State Bank of Viet Nam (SBV) owns
77.11 per cent of Vietcombank's stakes, which means the SBV will receive
VND2.05 trillion ($95 million) in dividends.
This
year, VCB plans to make VND9.5 trillion ($440 million) in after-tax profits
and pay a ten-per-cent dividend.
HAI
to offer 117m shares at VND10,000 per share
HAI
Agrochem Joint Stock Company (HAI) plans to organise an unsual shareholders
meeting to issue 117 million shares at a low price of VND10,000 per share.
HAI will
issue these shares after the company completes raising capital from its
equity.
The
company will issue 117 million shares at a ratio of 1:1 or a ratio that is determined
by the shareholders to make sure the number of issued shares does not exceed
117 million.
The
shares will be issued in two phases. In the first phase, HAI will offer 67
million shares to the company's shareholders at a likely ratio of 7:4.
In the
second phase, 50 million shares could be issued at a predicted ratio of 11:3.
After
the issuance, HAI's chartered capital is expected to jump from VND1.32
trillion (US$61.4 million) to VND2.34 trillion ($108.6 million).
AMD
moves to list on HOSE
AMD Investment
Group Joint Stock Company (AMD) officially moved to the HCM City Stock
Exchange (HOSE) from the Unlisted Public Company Market (UPCOM) on Tuesday.
AMD was
originally a consultancy corporation dealing in investment and business
administration. Over the years AMD expanded to other sectors such as
high-tech, education, commerce and services.
The
company also invested in five subsidiaries and two associate companies which
have strong and stable positions on the market.
Last
year, AMD Group recorded VND477 billion (US$22 million) in total revenue,
outstripping last year's plan by 154 per cent.
This
year, the company targets a total revenue of VND1 trillion ($46.3 million)
and a profit of VND34 billion ($1.57 million), an increase of 52.3 and 47.5
per cent, respectively, over last year.
Nguyen
Tien Duc, Director General of AMD Group, said that the company had plans to
invest in a complex to develop high technologies and high-quality human
resources; connect scientists to the market; and connect technology firms to
consumers.
Thermal
power plant boiler to be set up
Electricity
of Viet Nam and Doosan Viet Nam Heavy Industries have completed installing a
heavy girder of the first boiler unit of the Vinh Tn 4 Thermal Power Plant.
Electricity
of Viet Nam and Doosan Viet Nam Heavy Industries have completed installing a
heavy girder of the first boiler unit of the Vinh Tn 4 Thermal Power Plant.
Photo kinhtenongthon
It is a
key section of the power plant in the coastal south-central Binh Thuan
Province, for speeding up construction to make the first unit operational in
2017, and the second unit in 2018.
The
thermal power plant, which is one of the key projects of the government with
EVN as an investor, has two units with a total capacity of 1,200 megawatt
(MW), annually producing more than seven billion kilowatts per hour (KWh).
According
to the plan, the plant will be connected to the national electricity network
in 2018.
The Vinh
Tan 4 plant located in Tuy Phong district, 300km east of HCM City, has a
total investment capital of US$1.4 billion from a consortium of with the
Japanese Mitsubishi Corporation, Power Electricity Construction Company No 2
(PECC2) and Pacific Corporation.
This is
the first large-scale coal-fired power plant in Viet Nam that will use
supercritical steam parameters.
Deputy
PM: SOE equitization will depend on stock market
Deputy
Prime Minister Nguyen Xuan Phuc said the Government is determined to finish
equitization of 289 State-owned enterprises (SOEs) this year but stressed
that the equitization pace will depend on the performance of the local stock
market.
Phuc
made the point at an ask-and-answer session of the National Assembly (NA) in
Hanoi over the weekend.
The
Government targeted to equitize 432 SOEs in the 2014-2015 period but 289 of
them have yet to go public though 2015 has only six months to go.
The
Government was striving to realize the target, Phuc said in reply to a query
posed by NA deputy Tran Du Lich, who is also an economic expert, at the
session.
However,
Phuc noted that equitization of the SOEs would depend on the local stock
market.
Phuc
said it would be easy to sell shares of SOEs to institutional investors,
State Capital Investment Corporation (SCIC) and their employees but selling
stakes to make SOEs become public companies should follow the market rule and
depend on its performance.
Phuc
said the Government will not equitize SOEs at any cost and have to prevent
State asset losses during the equitization process.
Vietnam’s
stock market is still small in terms of capitalization while the total value
of SOEs planned for equitization in the next three years is estimated at
US$25 billion.
At the
Vietnam Business Forum in Hanoi last week, the Capital Market Working Group
said the local stock market has gone retrograde compared to the stock
exchanges in other ASEAN countries.
A study
of the working group showed that Vietnam had a population of 91 million
people but its stock market’s capitalization is just around US$46 billion,
equivalent to only 25% of the country’s gross domestic product (GDP).
Meanwhile,
the stock market in the Philippines with 99 million people is put at US$184
billion, four times higher than that of Vietnam and accounting for 65% of
Philippine GDP.
The
stock markets in Thailand with a 69 million population, Malaysia with 30
million, Singapore with five million and Indonesia with 251 million have
total capitalization of about US$418 billion (112% of GDP), US$287 billion
(88% of GDP), US$415 billion (135% of GDP), and US$397 billion (45% of GDP)
respectively.
Nguyen
Kien of the working group said Vietnam’s stock market has not been strong
enough to facilitate the equitization of SOEs.
The
total value of SOEs to undergo equitization in the next three years is
estimated at US$25 billion. If the Government plans to sell 15% of their
total shares on the local stock market, US$3.75 billion will be needed to buy
these shares, according to the group.
Therefore,
domestic capital sources will not be enough and Vietnam will need foreign
capital to buy stakes in SOEs.
However,
the group noted that only US$118.3 million had flowed into Vietnam’s stock
market between January 1 and May 19 this year.
The
working group proposed putting SOE equitization on fast track and increasing
foreign ownership at Vietnamese enterprises to fuel development of the local
stock market.
Vietnam
fails in Philippine rice tender
The
National Food Authority (NFA) of the Philippines has turned down the bids of
Vietnam, Thailand and Cambodia for supplying 100,000 tons of rice, saying
they are higher than the price sought by the agency.
The
information was confirmed by the director of a major rice exporting firm in
the Mekong Delta, who asked not to be named, after the rice bidding ended on
June 16.
He told
the Daily that Vietnam was unable to win the contract to supply 100,000 tons
of 25% broken rice to the Philippines though its bid was lower than those of
Thailand and Cambodia but still higher than expected by the NFA.
Vietnam
offered a US$417 per ton bid while Thailand and Cambodia offered US$418 and
US$464 respectively.
The NFA
opened the latest tender to increase rice stocks after it had picked Vietnam
to supply 150,000 tons of 25% broken long-grain white rice for delivery
between July and August at a tender earlier this month. Vietnam won this
contract after cutting its bid to US$410.12 a ton as suggested by the
authority.
The
Philippines has imported a total of 650,000 tons of rice under
government-to-government contracts this year to replenish stocks in the lean
season from July to September and prevent commercial price hikes. The volume
includes 450,000 supplied by Vietnam and 200,000 by Thailand.
HCM
City, RoK bolster economic, cultural cooperation
On June
18, Ho Chi Minh City People’s Committee Vice Chairman Nguyen Huu Tin worked
with Korean Consul General in Ho Chi Minh City Park Noh Wan on specific
cooperation measures aimed at further stepping up economic cooperation and
cultural exchanges between Ho Chi Minh City with Korean localities.
At the
meeting, Nguyen Huu Tin informed his host about the results of cooperation
between Ho Chi Minh City and the Korean city of Busan over recent years, and
the recent signing of a cooperation agreement with Daegu City.
Both
sides underscored the need for regular meetings to review bilateral
cooperation and alleviate difficulties so as to speed up the implementation
of signed agreements.
The
municipal People's Committee has directed city leaders to consider and deal
with requirements and recommendations made by Korean businesses, Huu tin
said, adding that HCMC will facilitate Korean investments in Ho Chi Minh
City.
“Municipal
leaders have always paid heed to protecting the legitimate interests of the
people from the Republic of Korea (RoK) as well as other countries in
accordance with the law. Along with the investment by Korean businesses, as
many as 70,000-80,000 Koreans are living in Ho Chi Minh City.”, Huu Tin told
his host.
Wan Park
Noh said the HCM City- RoK cooperation has been elevated to a higher level,
noting that with the strength of the support industries, his nation is
willing to share development experience with Ho Chi Minh City. Currently,
many small and medium sized Korean enterprises in this field are keen to seek
investment opportunities in Ho Chi Minh City.
He expressed
his hope that HCM City would continue creating the best possible conditions
for Korean businesses’ investment process and support Korean citizens living
in the city.
Regarding
the Metro Line No 5 construction project in Ho Chi Minh City, Park Noh Wan
said leaders from Korean ministries and agencies are set to work with the
Vietnam Ministry of Planning and Investment later this month to discuss this
project.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 20 tháng 6, 2015
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