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BUSINESS IN BRIEF 23/7
Local
firms supported to benefit from FTAs
The
Ministry of Industry and Trade and the HCMC government co-held a seminar last
week to discuss measures for local firms to benefit from
Vietnam
has signed 10 bilateral and multilateral FTAs and is expected to wrap up
negotiations over two comprehensive trade accords later this year, heard the
seminar. Therefore, local enterprises need support from government agencies
to make the most of such FTAs.
Under a
draft scheme prepared by the ministry, in addition to informing local
enterprises of the FTAs via seminars and training courses, the ministry will
establish teams specializing in popularizing and clarifying policies and
Trinh
Minh Anh from the Steering Committee for International Economic Integration
said 2015 was an important year for
“We have
proposed setting up a team in charge of clarifying
Many
economic partners of
Dr. Doan
Thi Hong Van from the HCMC University of Economics said besides making known
the contents of already-signed FTAs, the Government should consult businesses
on the possible impacts of new trade pacts to better prepare negotiations
instead of only seeking comments from ministries and agencies.
Van said
the draft scheme just focuses on benefits of the country’s international
integration so it should also cover challenges enterprises may encounter to
help them understand and find ways out.
Ly Kim
Chi, chairwoman of the HCMC Food and Foodstuff Association, said 80% of the
association’s members were small and medium and they had not got access to
updates of the country’s international integration.
Pham
Kieu Oanh, deputy general director of Nha Be Garment Corporation, said
business leaders should study tax incentives of the FTAs to make the most of
these pacts and minimize exposure to risks.
According
to the Dong Nai Department of Industry and Trade, its recent surveys have
shown that foreign-invested firms in the southern province have mapped out
plans to bank on the FTAs while local small and medium enterprises were
concerned about the country’s deeper global integration.
Experts:
Coal-fired power plants inevitable despite air pollution
Although
coal-fueled power projects pose environmental hazard and impact on the lives
of people in nearby residential areas, experts have agreed that
Hoang
Thanh Binh of the Green Innovation and
Binh
said data indicated emissions from coal-fueled power plants account for some
63% of total greenhouse emissions from thermal power facilities in 2014-2020.
Coal-fueled power plants affect the ecosystem, farming, buildings and
people’s health, among others.
According
to Green ID, coal-fired power facilities discharge around 14.8 million tons
of ash every year until 2020 and the volume is forecast to rise to 29.1
million tons towards 2030.
Tran
Dinh Sinh, deputy director of Green ID, quoted a study of
“Many
more people could die young if other coal-fired thermal power plants included
in zoning plans are up and running,” Sinh warned.
Lam
Thanh Hung, deputy director of the Department of Industry and Trade in
According
to the zoning plan for
Nguyen
Duc Cuong, director of the Center for Renewable Energy under the Vietnam
Institute of Energy, said
Cuong
said priority was given to coal power development after relevant agencies
weighed related issues and coal price forecasts.
“What
matters most are where coal-fired power plants will be developed and which
technologies will be used to minimize their impacts on people’s lives and
support economic growth,” Cuong said.
Cuong
said biomass power depends on seasons while weather conditions decide the
efficiency of solar and wind power facilities. In addition, these energy
sources require high investment costs.
He said
biomass, solar and wind power could be alternative energy sources in the
Mekong Delta.
Biomass
can supply a maximum of 1,000-1,500 MW and wind power 6,200 MW until 2030.
FDI
exporters outperform local firms
While
local enterprises faced a slowdown in outbound sales in the first half of
this year, the foreign direct investment (FDI) sector reported export growth
of over 20%.
According
to the latest report of the General Department of Customs on exports and
imports in January-June, local exporters shipped US$25.23 billion worth of
products in the period, down 8.4% against the same period last year. Major
export earners in the period were apparel, seafood, crude oil, wooden
products, rice and coffee.
Exports
of the local business sector shrank by US$2.31 billion in the the period due
to sharp declines in major export products including crude oil, coffee and
seafood.
Meanwhile,
shipments of FDI enterprises rose by 20.4% to US$52.54 billion. Exports of
the FDI sector helped the country’s total exports in the first half of this
year go up by 9.3% year-on-year to US$77.77 billion.
The
General Department of Customs said Asia was still the biggest export market
of
The
period saw exports to the
In the
January-June period,
Ministry
can decide investor selection format for major bridge
The
Prime Minister has assigned the Ministry of Transport to decide a viable way
of selecting investors for a major bridge linking the Mekong Delta provinces
of Tra Vinh and Soc Trang.
The
ministry is permitted to make such a decision for the Dai Ngai bridge on
National Highway 60 within its authority and in line with the exisiting
regulations.
The
ministry can map out an investment plan for the bridge project, which will be
developed by funding of an build-operate-transfer investor and the State
budget. The BOT investors will be allowed to collect tolls at a toll gate
near the new bridge
The
ministry will have to work with the Ministry of Finance and the authorities
of Tra Vinh and Soc Trang provinces to choose the site for the new toll
station.
Dai Ngai
is one of the four major bridges on National Highway 60 and the other three
are Rach Mieu, Ham Luong and Co Chien. Dai Ngai bridge will establish a vital
link between Highway 60 and highways in the eastern corridor of the Mekong
Delta, including Tien Giang, Ben Tre, Tra Vinh and Soc Trang provinces.
Co Chien
Bridge project was also carried out in the same format planned for Dai Ngai
bridge with the bridge funded by BOT investment and the approach roads by the
State budget.
The
transport ministry said in its recent report that the Mekong Delta region
would need around VND87 trillion (nearly US$4 billion) for transport
infrastructure development from 2016 to 2020.
Tax
debtors may be banned from overseas travels
The
Ministry of Finance has proposed the Government ban business leaders and
owners from traveling abroad if their enterprises have tax arrears totaling
VND1 billion (nearly US$46,000) including unpaid debt for 90 days.
The
ministry wants such a ban to be imposed on legal representatives of
enterprises including chairpersons, presidents, general directors and
directors of private and State-owned enterprises as well as cooperatives and
authorized individuals of organizations.
A
similar ban would apply to individuals who owe taxes from VND50 million
(about US$2,290) including overdue tax payments for over 90 days until they
have fulfilled all tax obligations.
Legal
representatives of credit institutions that provide guarantees for tax
debtors would also be forbidden from leaving the country as proposed by the
ministry.
The ban
period for foreign debtors would not be longer than three years but might be
extended until they have been cleared of tax payment obligations.
Corporate
leaders and individuals will be allowed to leave the country if they deposit
money or assets or have guarantees of credit institutions for their tax
debts.
Tax debt
has become a matter of public concern in
Textile,
apparel exports to TPP markets skyrocket
The
majority of the exports were sent to the
According
to the Vietnam Textile and Apparel Association, the sector’s export turnover
in the first six months was 12.18 billion USD, up 10.26 percent compared to
the same period last year. The industry is expected to bring home 28 billion
USD this year.
TPP
negotiations began in 2005 and now include 12 countries, namely
The
pending TPP, expected to be completed this year, will create an important
momentum for economic ties between
The
agreement would create a free trade area with a population of 800 million,
accounting for 30 percent of the global trade turnover and nearly 40 percent
of the world economic output.
The
capital city has developed a plan to promote exports after it saw a fall in
exports in the first half of 2015, according to an official.
Chu Xuan
Kien, Deputy Director of the Hanoi Industry and Trade Department, said in the
first half of this year
Also,
key export products that fell in their export values during the first six
months included farming, textiles, garments, electronics and handicrafts.
Kien
said declining exports were due to adjustments in the exchange rate between
the Vietnamese dong and the US dollar, increases in input prices, and high
land rents leading to higher production costs and lower competitive abilities
in selling prices of export products.
Meanwhile,
difficulties in the world economy have caused many large export markets for
By the
end of this year, the city hopes to see a recovery in exports, as
Under
The city
would also improve the business environment and administrative procedures to
create favourable conditions for enterprises in developing new business, the Vietnam
Economic News reported.
By the
end of this year, the city would continue supports in banking interest rates
and trade promotion programmes. It would also encourage enterprises to
develop initiatives in the organisation of production and finding partners,
improve the quality of export products and sell products at competitive
prices.
The
associations should also combine enterprises to increase competitive and
develop brand names for sustainable development in the future.
Crop
restructuring increases productivity, value
The
development of high-quality crop seeds and seedlings as part of
In recent
years, different crop and animal varieties were provided to farmers in
However,
he said the agricultural seed sector has not kept pace with those in other
regional countries. Limitations exist in management as well as in technology
and equipment.
In
addition, the domestic seed industry is faced with competition from imported
seeds.
As many
as 47 enterprises are active in producing and trading crop seeds and
seedlings in the city. Most of them are private companies.
Last
year, they produced 15,400 tonnes of seeds, up 6.5 percent compared to 2013,
serving about one million hectares of cultivation, with rice varieties
accounting for 56.1 percent, maize 33.6 percent, and vegetables 5 percent.
Besides supplying the domestic market, about 451.4 tonnes of crop seeds were
exported last year. Thanks to new strains as well as suitable production
technology, vegetable productivity has increased significantly in recent
years, from 19.07 tonnes/ha/crop on average in 2006 to 23.8 tonnes/ha/crop
last year.
Average
production value on each hectare of land rose to 325 million VND (14,921 USD)
/ha/year last year, two times higher than the figure in 2010.
Orchids
are one of the key plants under the city's agricultural restructuring
programme, which plans to shift from traditional to urban agriculture, Xo
said.
In
recent years, the
The city
has also identified ornamental fish as a spearhead industry under its
restructuring plan for the agricultural sector until 2020.
Ornamental
fish have a higher value produced on the same area compared to other plants
and are suitable to urban agriculture.
The city
produced 90 million fish last year, with 11.2 million heads exported.
Under
the city's ornamental fish development plan until 2020, the city will strive
to produce around 200 million heads a year and earn about 30-50 million USD
from exports.
The city
has advantages in cultivation conditions, but management and trading
experience remain limited.
Work
starts on cable-stayed bridge over
Viet Nam
Expressway Company (VEC) held a ceremony on Saturday marking the start of
construction on the Phuoc Khanh cable-stayed bridge over
The new
cable-stayed bridge will be 21.75 m wide with four lanes, costing VND3.5
trillion (US$160 million). It was designed for vehicles traveling at 80kph in
its first phase and 100kph after construction is complete, Quang said.
With a
vertical clearance of 55 metres – the highest vertical bridge clearance in
The
contractors are Japanese firm Sumitomo Mitsui Construction and its local
partner Civil Engineering Construction Corporation (Cienco 4).
The new
bridge, which is a key component of the Ben Lu c - Long Thanh Expressway
project, is scheduled for completion in three and a half years.
The Ben
Luc - Long Thanh Expressway will be 57.1km, running Ben Luc and Can Giuoc
districts in Long An Province;
The
first phase of the expressway project requires investments of about VND31.3
trillion ($1.6 billion), including loans of $636 million from the Asian
Development Bank (ADB) and $635 million from the Japanese Government through
the Japanese International Co-operation Agency (JICA). The Vietnamese
Government will also provide $337 million in counter capital.
Addressing
the groundbreaking ceremony, Deputy Minister of Transport Nguyen Van Dong
said the new bridge would boost socio-economic development in the Southern
Focal Economic Zone.
He asked
municipal and provincial authorities in
VNDirect
receives $10.2m in revenue
VNDirect
Securities Joint Stock Company (VNDirect) received VND221 billion (US$10.2
million) in revenue in the first six months, 11 per cent more than last
year's H1, generating a net profit of VND76.2 billion ($3.53 million).
The
company's net profit in the first half of the year remained at last year's
level since operational cost rose by 34 per cent in the meantime.
VNDirect
reported that the company allowed its operational costs to enhance its
investment and improve the company's technological system.
After
the first six months of this year, VNDirect clients' trading value increased
by 15 per cent while the company's market share fell by 10 per cent.
At the
end of June, the company had more than VND1.84 trillion (85.4 million) in its
account, 95 per cent of which, or VND1.16 trillion ($53.9 million), was
securities investors' deposit.
Sao
Mai Group to issue more shares
The
State Securities Commission has approved Sao Mai Group Joint Stock
Corporation (ASM) to issue 112.65 million shares to raise the company's
chartered capital and pay dividend at the rate of VND10,000 per share.
Of
these, 107.3 million shares will be sold to public investors at a rate of 1:1
while the rest will be paid to the company's shareholders as dividend for
last year.
In case
the issuance is successful, the company's chartered capital will reach VND2.2
trillion (US$101.85 million). The current capital of the company is nearly
VND1.07 trillion ($49.67 million).
This
year, ASM plans to issue 221.62 million shares, including the amount
mentioned earlier.
OGC
to be listed as designated security
The HCM
Stock Exchange (HSX) has placed the Ocean Group Corporation share (OGC) under
designated security from July 23.
Before
that, HSX placed OGC under special monitoring as the company had not been
publishing its business results since last year.
Last
year, Ocean Group suffered a loss of VND2.52 trillion, and the company's
shareholders lost VND2.2 trillion, which exceeded the loss of VND1.37
trillion that the Ocean Group had announced earlier.
US
According
to the latest figures from Vietnam Customs, in the first half of 2015 total
trade between
In terms
of exports, Asia remained Vietnam’s biggest market, with $38.1 billion worth
in the first half, followed by America with $19.72 billion, Europe $16.53
billion, Oceania $1.74 billion, and Africa $1.67 billion.
The
Imports
from Asian countries reached $66.53 billion, or nearly 83 per cent of the
total, followed by America with $6.5 billion, Europe $5.3 billion, Oceania
$1.21 billion, and Africa $940 million.
China
was the largest exporter to Vietnam, with $24.22 billion, an increase of 23.2
per cent over the first half of 2014, while exports from South Korea stood at
$17.73 billion dollars, up 31 per cent.
Homebuyers
concerned about developers' tax liabilities
The
licenses of projects owned by real estate developers with outstanding tax
liabilities may be revoked, with the possibility that buyers may then not
receive land use rights certificates.
Real
estate developers and homebuyers may have lost some sleep recently with a
series of revelations about the tax liabilities of real estate enterprises.
Of special concern was the Hanoi Department of Taxation’s announcement that
it would revoke the project licenses of enterprises owing large amounts of
tax, which may affect the issuance of land use rights certificates.
According
to the Deputy Director of the Hanoi Department of Taxation, Mr. Thai Dung
Tien, the total tax liabilities of enterprises stands at VND23 trillion ($1.1
billion), with one enterprise owing VND320 billion ($14.9 million). Sixty-six
enterprises had the largest debts, totaling VND4.6 trillion ($214 million).
Total debts for land use tax was VND7.4 trillion ($344.2 million), of which
VND3.2 trillion ($149 million) was owed by enterprises that apparently
experienced no problems or difficulties.
Tax
authorities named enterprises with outstanding tax payments as a means of
shaming them into meeting their obligations. In the first six months of this
year, by using a number of measures, the Hanoi Tax Department retrieved more
than VND6.3 trillion ($293 million) in tax liabilities and penalties of
VND4.6 trillion ($214 million), with a further VND1.7 trillion ($79 million)
relating to land use taxes.
After
the enterprises were named at the beginning of June, 22 made payments to the
State coffers, of which five paid their outstanding taxes in full.
Mr.
Tien, however, said that outstanding tax liabilities are still too high. The
Department will therefore adopt stronger measures, such as freezing accounts
and continuing to name those enterprises publicly. For businesses that
violate the Land Law and delay payments for too long, the Department will
recommend the Hanoi People’s Committee revoke the project license.
“When we
see anything abnormal we will notify its headquarters and operations to warn
all businesses,” said Mr. Tien. “We will also report the matter to the police
to investigate and prosecute if necessary, as an example to others.”
The
issue of tax liabilities stems from policies adopted by the government and
the Hanoi’s People’s Committee at the beginning of 2013. Ministries and local
departments were requested to work to resolve difficulties facing
enterprises, including real estate enterprises.
The
economic downturn put many businesses in a precarious position so incentives
were introduced, such as tax reductions and exemptions and different forms of
investment support.
In 2012
the Ministry of Natural Resources and Environment sent a document to the
Hanoi and Ho Chi Minh City People’s Committees asking them to issue land use
rights certificates to customers of developers with outstanding tax
liabilities.
According
to one business with tax liabilities, for several years the real estate
market was developing, cash flows increased significantly, and they
understood the punishment for not paying their tax liabilities. It became
clear, though, that by depositing their tax payments in a bank they could
earn an amount of interest that more than covered any fines that may be
imposed for late tax payments.
Several
enterprises did likewise, and at the time the State was “sympathetic” towards
enterprises.
A
representative from the Hanoi Department of Natural Resources and Environment
pointed out that management agencies must also take some responsibility for
delays in tax payments by enterprises. Most real estate projects being
constructed or even completed were still subject to provisional land use fees
by local authorities.
Tax
liabilities are now a topic of discussion because house owners and real
estate investors that paid large amounts to real estate developers are now
concerned that land use right certificates may not be issued if the developer
has outstanding tax payments.
As Mr.
Tien has said, the Hanoi Department of Taxation will propose the city revoke
the project licenses of enterprises with outstanding tax obligations. The
relationship between many developers and their customers is certain to be on
rocky ground.
“I
bought an apartment on Nguyen Trai Street invested by the Hanoi Housing
Management and Development Company,” one customer said. “I recently read that
the company owes a huge amount of tax. So now I wonder whether my apartment
will receive legal certification or even if the project will be finished.”
Similarly,
Ms. Nguyen Anh Hong, who bought apartments from the Trung Viet Investment and
Construction Company in Ha Dong district, also expressed her concern over the
company’s tax liability of more than VND193 billion ($9 million). “We just
have to wait and see whether it’s a serious problem for the developer,
because no one would want to buy the apartments now,” she said.
“People
should not buy real estate products from the enterprises named because it
will be very difficult for land use right certificates to be issued,” said
Mr. Tien.
Siemens
technology the best medicine
Tech
giant works with HCMC medical center to install equipment allowing for more
tests to be conducted and improving turnaround times.
The
Medic Medical Center (MEDIC) in Ho Chi Minh City is maximizing its ability to
meet the in-vitro diagnostic testing needs of its patients by integrating
powerful pre-analytical systems, including two Siemens ADVIA 1800 Clinical
Chemistry Systems and four Immunoassay Systems, into its Siemens Apto
Automation Solution.
This
enhancement will enable MEDIC to run more than 1,500 tests per hour during
peak demand. “The upgraded Aptio Automation at MEDIC will help significantly
increase the number of tests performed each day and allow predicted
turnaround times, which has never been the case before,” said Siemens Vietnam
President and CEO Thai-Lai Pham. “Last but not least, it offers a broader
test menu, which is of great benefit to Vietnamese patients.”
In
addition, the latest Siemens’ CentraLink™ Data Management System will
facilitate a more efficient sample flow, auto-verification, quick access to
samples, and proactive quality control at MEDIC
Serving
about 2,000 to 3,000 patients, MEDIC was the first healthcare center in
Vietnam to install the Siemens AptioTM Automation Solution, in 2013, which
was also the first installation in all of ASEAN. Aptio Automation is an
adaptable solution that transforms laboratory operations by combining
Siemens’ industry-leading workflow expertise with peak performance and
intelligent technology. It allows for a phased implementation to accommodate
both current and future needs of medium-to very high-volume laboratories.
Motor
car tax regime to change
The tax
regime for automobile is set to change, with those consuming more fuel being
subject to a higher special consumption tax.
The
government has directed the Ministry of Finance and involved ministries to
adjust the old tax regime, with an emphasis on reducing excise taxes on
automobile types whose development has been prioritized.
Vehicles
of nine seats or more and those with a capacity of 3 liters or more will be
subject to higher excise tax rate. Such vehicles are unsuitable with
Vietnam’s transport infrastructure, are too expensive for most people, and
have huge emissions.
For
large-scale projects producing prioritized vehicles and projects producing
important groups of components, the government has called for the application
of preferential corporate income tax rates, the amount of which will be
determined by the government.
The
government earlier approved the development strategy for Vietnam’s automobile
industry to 2025 and vision to 2035. The overall objective is to build
Vietnam's automobile industry so it will become a key industry and meet the
needs of the domestic market and exports.
The goal
to 2035 is to have total production of 1,531,400 units, of which 852,600 are
nine-seat automobiles, 84,400 are vehicles of ten seats or more, 587,900 are
trucks, and 6,500 are specialized vehicles. The number of
domestically-assembled automobiles is to account for 78 per cent of domestic
sales.
dienmayxanh
heads north
After
staking out a strong presence in the south of the country, dienmayxanh (Green
Electronics) will open its first electronics supermarket in the north during
the third quarter.
The
Mobile World Investment Corporation has announced that its electronics supermarket
chain Green Electronics, which has 30 outlets in the south of Vietnam, will
open an outlet in the northern market in the third quarter. By the end of the
year it aims to open 70 outlets nationwide and be the biggest seller of
consumer electronics in the country. In 2016 its goal is to have 115 outlets.
“We will
officially open our first electronics supermarket in the north in the third
quarter instead of the fourth quarter, as we previously planned,” said
General Director of Mobile World Investment Corporation Tran Kinh Doanh. “It
is expected that Green Electronics will open a total of 40 outlets in
northern cities and provinces, including Hanoi, and it will take 12 months
for us to reach this target."
As the
second electronics supermarket chain of the Mobile World Investment
Corporation, together with thegioididong (Mobile World), Green Electronics
focuses on electrical and home appliances and entered the business in
December 2010. In the five years since a significant number of stores have
been opened with remarkable growth in revenue. In 2014 the revenue increased
50 per cent compared to 2013 and is expected to rise by 60 per cent this
year. In the first quarter of this year revenue grew 91 per cent compared to
the same period last year.
According
to Mr. Doanh, the reason for the corporation’s success is adopting a retail
concept with medium sized stores (of 800 to 1,000 sq m) and a special store
layout, together with low operating costs, strong financial resources, and
experience from operating Mobile World.
Hanwha
Life targets to break even in 2017
Hanwha
Life Vietnam has announced that in the first half of the year it recorded
steady growth, with total insurance premium revenue of VND153 billion ($7.03
million), up 56 per cent compared with the same period of 2014.
The
insurer is currently implementing a strategy to expand its network
nationwide. As at June it had 20 sales offices in major cities and 28 offices
in small and medium-sized cities. This year it plans to expand the network to
60 locations around the country.
It also
targets to break even in 2017. According to a representative from Hanwha
Life, the company has advantages in capital support from its parent company
in South Korea, which helped it increase its charter capital to VND1.9 trillion
($87.4 million). “With steady growth over the years Hanwha Life Vietnam is
confident to reach the break even point in the shortest time possible and be
among the Top 5 leading life insurance companies in Vietnam,” she said.
Along
with goals of expanding and breaking even, this year Hanwha Life also aims to
diversify its product lines and participate in community activities.
Hanwha
Life Vietnam was established in 2008 and its charter capital is one of the
highest among insurers in Vietnam.
BIDV
provides loans for Paradise Dai Lai buyers
On July
19 the Bank for Investment and Development of Vietnam (BIDV), Dong Da Branch,
signed a cooperation contract with the Nhat Hang Trading and Construction
Investment Joint Stock Company on loans for purchasers of villas at Paradise
Dai Lai Resort.
BIDV
will lend up to 70 per cent of the villa’s value for a 15-year term with an
interest-free period of 12 months.
Paradise
Dai Lai Resort is located on 40 ha and consists of 200 villas of 200 to 500
sq m, apartments, a restaurant, a conference centers, a spa, and sports
facilities. Villas range in price from VND3 billion to VND3.6 billion
($140,000 to $167,000). Promotions will be offered at the next sale, on July
26, such service charge exemptions for the first two years and 50 per cent
off for the next three years, and holiday gifts. Of particular note, the
first five buyers will receive a motor car worth VND630 million ($29,300).
FLC
picks up Cemaco Tower
The FLC
Group has completed its acquisition of Cemaco Tower at 265 Cau Giay Street in
Hanoi’s Cau Giay district, according to its Deputy Managing Director Dam Ngoc
Bich. “The Group is rushing to prepare all legal procedures to kick off the
project’s construction soon,” she said.
After five
years lying idle, the one-hectare project, which is located in one of the
most favorable areas of the capital, is undergoing site clearance.
FLC has
not revealed the value of the deal or whether they intend to follow the
project’s initial design.
According
to the original design Cemaco Tower, which was owned by the Chemical &
Scientific Technological JSC (Cemaco) and the Vietnam Infrastructure
Investment & Development JSC (VIID) was to comprise twin towers,
including a 50-storey residential tower and a 38-storey office tower, with
420 apartments for sale on an area of 66,484 sq m, office space for lease
with a total floor area of 35,960 sq m, and a shopping mall on 25,000 sq m.
The FLC
Group has attracted much attention in recent times after acquiring three real
estate projects in Hanoi in 2014 and the early months of 2015, including two
in Nam Tu Liem district and one in Ha Dong district.
It also
became the owner and developer of the $260 million FLC Samson Beach and Golf
Resort in the north-central province of Thanh Hoa and the $162 million Nhon
Ly resort, villa and luxury entertainment complex in southern Binh Dinh
province.
Licogi
13 and SaoMai Group to sell additional shares
The
State Securities Commission (SSC) has given Licogi 13 and the Sao Mai Group
permission to sell additional shares.
Licogi
13 will offer 5,568,100 shares with a par value of VND10,000 ($0.46) to
existing shareholders, for a total of VND55.68 billion ($2.55 million).
It
specializes in the construction of foundations and infrastructure, both civil
and industrial. It has been involved in many major national projects, such as
the Ho Chi Minh Mausoleum, T1 Terminal at Hanoi’s Noi Bai International
Airport, the National Convention Center in the capital, the Pha Lai
Thermoelectric Plant I and II, and the Ban Chat, Song Tranh II, and Lai Chau
Hydroelectric Plants.
The Sao
Mai Group, meanwhile, will offer 112,652,127 shares with a par value of
VND10,000 ($0.46), of which 107,287,740 shares will be offered to existing
shareholders and 5,364,387 stocks offered as the 2014 dividend payment to
these existing shareholders. The total value of the offering is VND1.12
trillion ($51.63 million).
Textile
& garment’s exports to TPP market increase 70%
Vietnam's
textile and garment industry has currently raised its profits and improved
its position in the global market.
In the
first five months of this year, Vietnam’s textile and garment exports to
member countries of the Trans-Pacific Partnership (TPP) increased 69, 66
percent in comparison to the same period of 2014.
The
country's textile and garment exports totaled US$ 4 billion, accounting for
50 percent in the TPP member countries and 50 percent in the same period last
year. Besides, the industry’s exports to Japan achieved US$ 1 billion, and
US$ 207 million to Canada.
From
January to June, 2015, the industry’s export turnover continued to profit at
US$ 12, 18 billion, an increase of 10, 26 percent, compared to the same
period last year.
According
to the Vietnam Textile and Apparel Association (VITAS), with the sharply
growth rate as now, export turnover of Vietnam’s textile and clothing is
predicted to reach US$ 28 billion, leading the textile and garment sector to
be one of the country's largest industries.
National
Power Grid’s capacity reaches over 37,600MW
The
National electricity grid’s management center said in the first six months of
2015, the national power grid system put into operation more 2,654MW,
bringing a total capacity of 37,604MW.
It is
expected that from now till end-2015, more seven turbines with total capital
of 1,349.5MW will be connected to national power grid, meeting the increased
demand.
Accordingly,
five turbines are set up in Formosa Ha Tinh, An Khanh 1, Nam Muc and two from
the Electricity of Vietnam (EVN) will aslo be put into operation.
Besides,
the national power grid will aslo be added more 260MW. From the end of 2014,
total capacity of national power grid reached 34,000MW and was ranked the 3rd
position in Southeast Asia and the 31st in the world.
Vietnamese
steel companies see improving production
The
Vietnam Steel Association said that production and sales of its members have
significantly improved thanks to recovering real estate market.
Particularly,
in the first half of this year, steel production reached 6.45 million tons,
up 18.6 percent compared to the same period last year; the sales of steel hit
5.46 million tons, up 22.2 percent over the same period last year; and steel
exports touched 846,000 tons, down 4.7 percent.
Despite
increase in production, domestic steel industry still faces difficulties due
to excessive steel supply. The prices of domestic steel products have
continuously dropped in accordance with losing trend of input materials. Most
steel products have seen a decline of 5-10 percent in price in comparison to
the beginning of this year.
According
to VSA, economic growth of China - the world’s largest market that controls
global steel industry’s movements – has become stagnant, causing steel
consumption to reduce while steel production of China is always in great
abundance. Therefore, China will promote export of steel to other countries,
including Vietnam, at low prices, causing pressure on local steel companies.
Moreover,
competition among local companies and that between local and foreign steel companies
have become more cutthroat because of free trade agreements which send steel
import tariffs from many countries to Vietnam to zero percent. As a result,
domestic steel companies have to lower their prices to maintain operation.
Lobster
farmers hurt by falling prices
Lobster
farmers in the central coastal province of Khanh Hoa are facing big losses as
prices are sharply falling.
Lobster
prices have fallen by VND500,000-600,000 a kilogramme compared with a year
earlier.
Prices
now range from VND1.35-1.4 million a kilogramme, against the export prices of
VND1.8-1.9 million last year.
Nguyen
Ngoc Huy, who owns a farm at Binh Ba island in Cam Ranh City, said he has
never seen such low prices.
"Normally
the prices suddenly fall at the beginning of the harvest season and then
rebound," Huy said. "Many farmers held back their lobster, waiting
for prices to rise, but this did not happen this year."
The drop
in prices is being blamed on Chinese traders who are offering less for lobster
imported from Vietnam. Phu Yen and Khanh Hoa are the main lobster provinces,
and nearly 90 percent are exported to China.
Department
of Fisheries reports show that, since 2000, between 8,000 to 10,000 lobster
farms have been established by farming households nationwide.
Most are
in the central region, from Quang Binh Province to Binh Thuan Province.
The
department estimates that the total output of lobster a year in Vietnam is
nearly 1,400 tonnes. This returns a total annual profit of VND3.5trn to farmers.
Local
material supply for leather-footwear sector up
The
leather-footwear industry is expected to run a trade surplus as the number of
foreign-invested and local firms supplying material for the industry has
risen significantly, the chairman of the Vietnam Leather and Footwear
Association (Lefaso Vietnam) said.
The
industry could obtain the export revenue target of US$14.5 billion set by the
Ministry of Industry and Trade this year, up 20% compared to last year,
Nguyen Duc Thuan told reporters at the 17th International Shoes and Leather
Exhibition (Shoes & Leather Vietnam 2015) in HCMC on Wednesday.
Notably,
the trade surplus of the sector will reach over US$7 billion, as domestic
firms have been able to supply more material for leather-footwear producers
and created more added value for the industry.
Material
accounts for some 55% of the FOB price and the remaining 45% is production
cost, said Thuan, who is also general director of Thai Binh Shoes Co.
Thuan
said foreign-invested and local enterprises have spent more on material
production in recent years.
Nguyen
Van Thinh, general director of Viet A Chau Investment Development
Corporation, said many more businesses have made material for the
leather-footwear industry and some of them have spent big on modern
technologies.
Viet A
Chau has invested heavily in two plants producing PVC and PU artificial
leather and provides over one million square meters for local customers a
month.
Tran Gia
Huan, director of marketing for ASEAN at Henkel Adhesive Technologies Vietnam
Co. Ltd., said Vietnam is one of the three biggest consumers of glue in the
region besides Indonesia and Thailand. Vietnam is expected to surpass
Thailand in terms of glue sales in the next three to four years thanks to its
growth of over 10% in the past years.
Huan
said there are five big suppliers of glue for the leather-shoe industry in
Vietnam, with Korean and Taiwan firms taking a lion’s share.
Truong
Thi Thuy Lien, director of Lien Phat Co. Ltd., said local companies have been
able to meet part of material demand of the industry but Chinese-made supply
is still overwhelming thanks to low prices.
If there
were no rule on origin of material in trade pacts like the Vietnam-EU free
trade agreement and the Trans-Pacific Partnership (TPP), Vietnamese
businesses would choose cheap material imported from China.
According
to Lefaso, locally tanned leather output met 24.4% of demand. The proportions
of artificial leather, woven fabric, non-woven fabric and carton production
were 4.2%, 17.5%, 12.5% and 16.7%.
Notably,
locally-made shoe soles can meet 58.7% of total demand.
According
to the General Department of Customs, Vietnam’s leather-shoe exports amounted
to US$4.69 billion in January-May, up 21% against the same period of 2014. Of
which, shipments to the U.S. were US$1.63 billion, up 30.6%, and the EU
US$1.55 billion, a 16.2% rise.
Meanwhile,
the country imported US$2.06 billion worth of leather material in the first
five months of this year, mainly from China, South Korea and Taiwan.
Shoes &
Leather Vietnam 2015, the International Footwear and Leather Products
Exhibition and Vietnam International Exhibition on Garment Manufacturing
Equipment and Fabric are taking place at the Saigon Exhibition and Convention
Centre in HCMC’s District 7 until today.
Over 300
local and foreign producers and suppliers from 26 markets are showcasing
machines, devices, material and chemicals for the leather-shoe industry at
the events.
HCMC
asked to speed up work on first metro line
Deputy
Minister of Transport Nguyen Ngoc Dong has urged HCMC to accelerate
construction on the underground track of Metro Line No. 1 to ensure it is up
and running in 2020.
Dong
called on the city to put the project on fast track at a review meeting on
HCMC’s mass rapid transit projects on July 16. The meeting was chaired by
Deputy Prime Minister Hoang Trung Hai.
Bui Xuan
Cuong, director of the Management Authority for Urban Railways, told the
meeting that site clearance of Metro Line No. 1 from Ben Thanh to Suoi Tien
in District 9 was finished in late March. Work has started on three of five
packages and tenders are under way for the remaining two.
According
to Cuong, construction packages are being implemented on schedule and the
elevated section from Suoi Tien to Saigon Bridge will be put into service
sooner than others.
However,
according to Dong, the Suoi Tien-Saigon Bridge section cannot be used if
Package 1A for the underground track between Ben Thanh Market and the Opera
House is behind schedule. Therefore, the city should streamline procedures
and speed up construction so that the entire line can be put into service in
2020.
Hai told
ministries and agencies to accelerate investment disbursements for the first
metro line as capital has been disbursed slower than expected.
In
addition to Metro Line No. 1, the second line is facing problems with design
and cost adjustment.
The city
government has to prepare the pre-feasibility study for both phases of Metro
Line No. 2 to present it to the National Assembly this October.
Hai told
the Ministry of Transport and HCMC to select technologies that can connect
different metro lines supplied by different contractors.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Năm, 23 tháng 7, 2015
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