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BUSINESS IN BRIEF 14/8
HCM
City business delegation welcomed in Russia
Strengthening
cooperation in all fields between
The
HCM City People’s Committee will lead a contingent of representatives of the
business community on a visit to
The
committee has scheduled a conference for August 11 to discuss the specifics
of the visit and coordinate with the Viet Nam Embassy in
At the
meeting,
Currenty,
Last
year, two-way trade between the city and
More
chances for local goods to enter Russia
Vietnamese
enterprises will have more opportunities to export their goods to
Nikolai
Rapustkin, a trade representative of
The
conference was organized by the HCMC government, the Vietnamese Embassy in
Rapustkin
said Vietnamese firms are awaiting the FTA to take effect to boost shipments
of apparel, footwear, jewelry, furniture, seafood and vegetables to
Import
tariffs on Vietnamese coats, skirts, sportswear and shoes will be cut to 0%,
making Vietnamese products competitive. Vietnamese-made products will help
stabilize goods supply in
The
FTA will also incentivize Vietnamese firms to invest in
Incentra
chairman Nguyen Canh Son said Russian consumers may select high-quality
Vietnamese items given the depreciation of the ruble against other
currencies. Incentra will support domestic companies to find Russian retail
partners.
Exhibitors
at the upcoming fair in
Le Dao
Nguyen, deputy general director of BIDV, said the bank would cut lending
rates by 1-1.5% to aid local exporters to ship products to
Nguyen
Thanh Son, Vietnamese Ambassador to
When
the Vietnam-Moscow industrial park is set up in
HCMC
vice chairwoman Nguyen Thi Hong said
Two-way
trade between HCMC and
Hi-tech
agriculture parks clinch cooperation deal
Hi-tech
agriculture parks in HCMC and six provinces have inked a cooperation
agreement on developing complementary products to avoid competing with one
another.
The
cooperation deal was signed by representatives of hi-tech agriculture parks
in HCMC, Phu Yen, Khanh Hoa, Lam Dong, Binh Duong, Can Tho and Hau Giang at a
conference here in the city on Monday. The event was organized by the HCMC
Hi-tech Agriculture Park Authority under the city government.
Dinh
Thanh Hiep, head of the HCMC Hi-Tech Agriculture Park Authority, said
Since
HCMC has limited natural resources, the HCMC Hi-Tech Agriculture Park will
focus on developing high quality seeds, transfering technology and helping
neighboring localities consume their farm produce.
Pham
Huu Phuoc, director of
According
to Phan Cong Du, head of the Dalat Biotechnology and Applied Hi-tech Agriculture
Authority, the Central Highlands
The
south-central
Moreover,
provincial and municipal hi-tech agricultural parks pledged to cooperate in
science and technology as well as human resource development for the sector.
HCMC
sees low disbursements at ODA-funded projects
Infrastructure
projects financed by official development assistance (ODA) loans in HCMC
disbursed lower capital than expected in the first half of this year, with
only 44% of the target met, according to the municipal government.
In a
report sent to the Government Office and the Ministry of Planning and
Investment last week, the HCMC government said of 13 ODA-funded projects
under construction, four had an average capital disbursement ratio of less
than 40%, eight posted 40-60% and only one made good progress as its capital
disbursement met 80% of the year’s target.
In the
first six months of this year, the realized capital ratio of infrastructure
projects averaged 43.5% and enviromental projects 58.3%, the Vietnam News
Agency reports, citing the report of the HCMC government.
Currently,
total investments of ODA-funded projects underway in HCMC near VND110
trillion, with ODA loans accounting for about VND93.4 trillion and the city
budget’s recipocal capital for the remainder.
Low
capital disbursements of ODA-funded projects in the January-June period were
attributable to slow site clearance and relocation of public works, traffic
management and bidding problems, and design changes.
The
ODA-funded projects include phase two of a water environment rehabilitation
project in the
According
to the Vietnam News Agency, the capital disbursement ratio was only 10% for
the water environment rehabilitation project, 49% for Metro Line No. 1 and a
mere 6% for Metro Line No. 2.
In the
report, the HCMC government asked the ministry to help seek ODA funding for
large-scale projects in the fields of infrastructure development, transport
and environment such as metro lines, Ben Thanh central station of metro
lines, wastewater treatment plants and flooding control.
Work
starts on ring road in Thanh Hoa
The
Traffic Safety Project Management Unit under the Ministry of Transport and
Thanh Hoa Bypass BOT Joint Stock Company have kicked off construction on
phase one of a ring road project in the north-central
The
ministry said the project costs over VND1 trillion and is scheduled for
completion in 2017. The six-kilometer-long road is designed to begin at the
intersection with
As for
the ring road intersection with National Highway 1A and the north-south
railway, a two-lane overpass and three diverters will be constructed in the
initial phase before being expanded to six lanes including four for
automobiles and two lanes for rudimentary vehicles. Some sewers and three
bridges will also be built on the route.
Investors
of the build-operate-transfer (BOT) project will be allowed to use revenues
at the toll station at km 286+397 on
After
completion, the route will form a complete ring road to ease traffic on the
Samsung
launches Smart Library 2.0
Following
the success of the "Samsung Smart Library" campaign, Samsung Vina
Electronics, in coordination with the General Science Library of
This
is one of several activities within Samsung's Corporate Citizenship project.
With the
belief that youth are the future of society, Samsung gives priority to
educational programmes that contribute to development of a better life.
Globally,
the Corporate Citizenship programme Samsung Hope for Children, launched in
2011, has brought about learning, leadership training and healthcare
opportunities for thousands of children.
In
"Learning
Commons" was launched to fulfill the need of Vietnamese youth to have
convenient, inspiring spaces for learning and exchange of knowledge.
Smart
Library 2.0 is a cooperation programme between Samsung and its partner the
General Science Library of
Under
this programme, Samsung supports libraries with infrastructure improvement,
technological device financing, and implementation of knowledge exchange
activities.
"With
the cooperation and support of Samsung, we hope to create a convenient place
for knowledge exchange, and organise new activities that are in line with
current trends and interests of young generations," Bui Xuan Duc,
chairman of GSL, said on Tuesday.
"We
appreciate the talent of Vietnamese youth as well as Vietnamese values,"
said Kim Cheol Gi, CEO of Samsung Vina Electronics. "We hope to bring
about a playground for you to share ideas and knowledge so that your
treasured values spread further."
Learning
Commons programme is expected to be put into operation in October.
Locally-made
car dream continues to face trouble
Xuan
Kien Auto JSC’s plans to produce a totally made-in-Vietnam car continue to
face problems.
Xuan
Kien JSC harbours the dream of manufacturing a low-price, locally-produced
car for people living in rural areas. But like other made-in-Vietnam car
projects, they have failed to raise finance from local banks and were forced
to sell off one of their manufacturing facilities, Me Linh 1 Plant.
According
to industry experts, the car models designed by Xuan Kien have proved
unattractive and were limited by the non-existence of a sufficiently
developed support industry. Xuan Kien also wants to produce heavy trucks and
to expand its mining business and this would require large investment.
But
bad business plans alone are not the only thing blame, a lack of supporting
policies has also been pinpointed as another factor in the failure of the
local car industry.
Deputy
director of Information Centre of Industry and Trade under the Ministry of
Industry and Trade, Le Quoc Phuong, admitted the problem.
He
said, "The agencies haven't reached any agreement. The Ministry of
Industry and Trade want the industry to grow but the finance ministry asks
for higher taxes.
Phu
Quoc absorbs VND 144 trillion investment capital
As of
late June, 2015, the southern island of Phu Quoc attracted 196 projectswith a
total registered capital of VND 144 trillion, said Vice Chairman of the Phu
Quoc district People's Committee Huynh Quang Hung.
According
to Mr. Hung, 136 projects are underway, focusing mainly on tourism.
Big
groups like Vingroup and Sun Group are building a series of 5-starred and
6-starred resorts, restaurants, hotels, and amusement parks in“
The
People’s Committee of Kien Giang has recently allowed Sun Group to build a
cable car system connecting An Thoi town and Hon Thom island.
In
addition, Phu Quoc international passenger seaport is under construction with
a total investment of over VND 1.6 trillion. Once operating in 2017, the
seaport would serve a large number of international tourism vessels.
The
locality is seeking big investors and has promised the most preferential
policies, including corporate income tax, individual income tax, land lease,
among others./.
Vietnam
Steel Corporation currently owns 20% of TIC.
Many
businesses rushed to invest in the mining sector around eight years ago when
the iron price was high on global markets. Having iron ore reserves of 544
tons, Thach Khe attracted many investors at that time as it was expected to
be profitable.
TIC’s
chairman passed a plan to adjust the Thach Khe iron mine project at the end
of 2014 but the project is deemed risky as its technical design and total
investment costs have not been approved.
Vietnam
Steel Corporation said as funding arrangements for the project had not been
completed and that the implementation process would be affected even if the
existing shareholders contribute more money as required. The firm added the
iron price had stayed low in the past two years due to an oversupply.
If the
price hovers in a range of US$55-60 per ton, the profitability of the Thach
Khe iron mine project would remain a question mark. On top of that,
management cost is another major issue for TIC as it has too many employees.
If
TIC’s shareholders contribute more money, the additional capital is not
enough for the company to cover its debts and costs this year, which amount
to VND877 billion.
Jan-Jul
budget deficit put at VND100.7 trillion
The
country’s budget deficit was estimated at nearly VND100.7 trillion in the
first seven months of this year despite growth in State budget collections.
According
to the Ministry of Finance, State budget collections nationwide amounted to
VND544.6 trillion by the end of July, reaching 60% of the full-year’s target
and up 6.6% year-on-year. However, the State spending in the same period
totaled VND645.3 trillion, resulting in a budget deficit of nearly VND100.7
trillion.
According
to the Ministry of Finance’s statement last week, revenue from domestic
sources contributed VND404.36 trillion, or 63.3% of the target and up 15.7%
over the same period last year. This indicated a strong rise of the economy.
Domestic
revenue in July alone was VND73 trillion, increasing by a sharp 57% from the
previous month as enterprises declared and paid taxes in quarter 2 according
to regulations.
Meanwhile,
revenue from crude oil stood at VND42.27 trillion in the first seven months,
achieving only 45.5% of forecast and falling 33.9% year-on-year despite the
oil production estimate of 9.69 million tons, reaching 65.8 % of the year’s
plan and up 9.2% over 2014. The reason was the sharp fall of oil prices to
around US$60 a barrel, down US$40 a barrel against the estimate.
In
addition, export and import taxes contributed VND147.7 trillion to State
coffers. After subtracting value-added tax refund of VND52 trillion,
the net revenue from export-import taxes was estimated at VND95.7 billion.
However,
State budget spending by end-July reached VND645.3 trillion, up 8.1% from the
same period of 2014. Of which, VND99.45 trillion was spent on development
investments and VND94.4 trillion on debt payments. Socio-economic development,
national defense, security and administration took VND446 trillion of the
total.
Property
firms want guarantee fees for future projects made clear
Real
estate enterprises believed the State Bank of Vietnam (SBV) should have clear
rules on guarantee fees from banks for future property projects, while the
SBV said banks might decide fees on their own.
The
amended Law on Real Estate Business, which took effect on July 1, regulates
that before selling or leasing future housing projects, developers must secure
assurances by qualified banks for financial obligations to their customers in
case homes are not delivered on schedule.
The
SBV in late May issued Circular 07 on bank guarantees, with effect from
August 9, to assist the law’s implementation. However, some real estate firms
said the circular lacks clear provisions to address problems in practice.
For
example, the Global Petroleum Investment Corporation (GP Invest) claimed that
the banks they have worked with are still waiting for the State Bank’s
instructions on specific guarantee fees. Some members of the Vietnam Real
Estate Association had similar concerns.
Answering
the questions, Bui Thi Kim Ngan, head of the credit division under the credit
department of the SBV, said the fees should be set by banks based on
agreement with investors or banks’ assessments of investors’ credibility.
It is
reported that the State Bank is currently reviewing data to publish on its
website a list of banks eligible to provide guarantees for future real estate
projects.
However,
many members of the real estate association said property developers would
have a hard time dealing with banks as long as clear rules on guarantee fees
are not yet issued.
Lumitel
signs up 10 percent of Burundian population
Lumitel,
Viettel Group's mobile operator in
Since
Lumitel
has also achieved the fastest growth of all Viettel operations in foreign
markets.
It is
focusing on 3G services right from the outset and has 800 base transceiver
stations, more than that of all its rivals put together.
Lumitel
is also a pioneer in offering promotional packages for calling, messaging,
and internet services.
Viettel’s
turnover from foreign markets rose by a quarter last year to 1.2 billion USD,
while profits were up 32 percent at 156 million USD.
The
Vietnamese telecommunication group expects to recoup 80 percent of the 600
million USD that it has invested overseas by the end of this year.
Viettel
also plans to enter the Democratic Republic of Congo (population of 75
million),
Quang
Ninh’s tourism surges in first seven months of 2015
The
Total
turnover from the sector exceeded 3.7 trillion VND (176 million USD), a 19
percent increase from 2014, reported Quan doi Nhan dan newspaper.
Moving
forward, the province will continue to implement the overall plan for local
tourism development, the plan for developing tourism products through 2020
and the “Ha Long’s smile” plan.
In
addition, the province is cooperating with northern localities and
Domestic
coffee sector faces foreign pressure in Dong Nai
Concerns
are growing in southern Dong Nai province as coffee prices are hitting a
record low and local coffee producers, particularly small enterprises, are on
the verge of bankruptcy while their foreign-funded peers are gaining ground.
Coffee
prices have continuously reduced and are now hovering around 36,500 VND (1.7
USD) per kilogram, the lowest value in years. Hence, up to 60 percent of the
coffee from previous harvests is still occupying the warehouses of local
farmers.
According
to Dong Nai’s Department of Statistics, coffee bean export reduced by 63,000
tonnes from last year to slightly more than 134,000 tonnes in the first seven
months of 2015. The product’s export revenue was no better off, valuing
almost 271 million USD, down 47 percent year on year.
Meanwhile,
foreign companies are expanding their foothold. Recently, the Germany-based
Neumann Kaffee Gruppe inaugurated a coffee processing factory in Long Thanh
district, the second facility of the company in
The
100-percent-Swiss-capital Volcafe
Netslé
also opened an 80-million-USD plant producing caffeine-free coffee in the
province in March.
Majority
of businesses satisfied with tax procedures reform
Up to
71 percent of enterprises said they were satisfied with the tax
administrative procedures reform in 2014, according to a report released in
Among
the 2,500 surveyed companies, 58 percent considered information about tax
procedures to be simple and understandable, said Dau Anh Tuan – Head of the
Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI).
However,
seven in every 10 businesses reported difficulties in learning about
tax-related policies and laws. Forty-nine percent of the respondents also
said they met certain obstacles in registering for taxes or adjusting tax
registration information.
Fifty-three
percent of the replies said tax staff members had appropriate attitude when
working, and 52 percent had positive assessments of the tax staff’s
professional capacity, Tuan said, adding that 48 percent recognised
substantial improvements in the tax sector’s information dissemination,
assistance to tax payers, management and inspections.
He
also underlined that 32 percent of the enterprises admitted they had to pay
unofficial fees to tax officers while 40 percent said that they would be
discriminated against if they did not pay such fees.
VCCI
President Vu Tien Loc said the report shows the recent reform of tax
procedures is on the right track, resulting in initial successes. It also
encourages that the efforts be carried out continuously since the business
circle has pinned high hopes on the sector’s performance.
The
report was unveiled by the VCCI, the Ministry of Finance’s General Department
of Taxation, the Advisory Council of Administrative Procedures Reform and the
International Finance Corporation of the World Bank.
Binh
Duong attracts over 1.2 bln USD in FDI in seven months
Workers
assemble garment products at Toyotsu Vehitecs
The
southern
During
the period, the locality welcomed 119 new investment projects and increased
the allocated capital to 79 existing ventures, according to the provincial
People’s Committee.
In
July alone, the province lured 631 million USD in FDI, including 33
newly-licensed projects worth 363 million USD and 20 operations adding more
268 million USD.
Binh
Duong is currently ranked second across the country in FDI attraction.
Vietnam’s
growth earns kudos in US
Cushman
& Wakefield, a private real estate services firm from NYC, works in 60
countries around the world and publishes a yearly report, Where in the
World?, providing data about the global real estate market.
"The
pace of growth in
In
C&W's ranking of the top 30 locations by manufacturing output, Malaysia
ranked first, followed by Malaysia, Taiwan, mainland China and the US and
Republic of Korea.
New
Zealand to ship potatoes to Vietnam
New
Zealand plans to export its potatoes to Vietnam under an agreement recently
reached between the two countries after three years of negotiations, said
Potatoes New Zealand Inc on August 11.
According
to Champak Mehta, CEO of Potatoes New Zealand Inc.,
Vietnamese
consumers are likely to enjoy
New
The
country’s potato exports, mainly to
German
news: “Doi Moi” policy entices foreign investors
Since
the “Doi Moi” (reform) policy was initiated in
Tagesschau
is a German national and international television news service under the
German public-service television network ARD.
According
to Tagesschau, there are significant new opportunities in
Since
its “Doi Moi” period, a heap of companies from the
The EU
has been
The
article hailed
The
economy is driven by falling oil prices, low unemployment and low interest
rates, it said, adding that Vietnam’s young population is regarded as
well-trained and hard-working with more than 40 percent younger than 25 years
old.
The
article also pointed out several problems in
Retail
banking market upbeat
The
elimination of the barriers is expected to be a breath of fresh air, helping
the retail banking market in
According
to Sacombank CEO Phan Huy Khang, opportunities are available for Vietnamese
banks to boost their retail activities.
He
explained that in the long run,
Shopping
habits are shifting towards cashless transactions and
Such
trends offer great opportunities for banks to promote retail activities, he
said.
However,
Khang noted a string of challenges are hindering the banks from implementing
retail activities, saying that the tide of foreign banks into Vietnam
following the removal of technical barriers also means that domestic banks
will face fierce competition.
Given
this, domestic banks should comprehensively revamp in order to raise their
competitiveness and maintain sustainable development, Khang stressed.
The
CEO suggested the banks focus on improving the quality of services, creating
outstanding products, applying up-to-date technologies to tighten linkages
among them, and seeking new markets.
Most
importantly, it is essential for domestic banks to consider customers at the
very centre of their activities and mull over the best and most honest ways
to meet their demands, he noted.
According
to Khang, the banks should devise their own development strategies and remain
innovative in churning out advanced products and services.
Sacombank
alone is serving 4 million customers with a focus on youth and urban
residents and targets to become a leading retail bank in
Accordingly,
refined soya oil and refined palm oil with trade codes of 1507.90.90, 1511.90.91,
1511.90.92, 1511.90.99 imported to
Safeguard
procedures will be implemented in line with current regulations on protective
measures for imports.
Last
year, the country imported nearly 666,600 tonnes of vegetable oils, rising
11.3 percent against 2013. Domestic sales growth plummeted from 42 percent in
2013 to 11.3 percent in 2014. Meanwhile, imports jumped from 5.3 percent in
2013 to 11.3 percent in 2014.
Rapid
hikes in vegetable oil imports to
Rice
exports hit US$1.4 billion
However,
it is inspiring that high-grade rice exports grew fast, said the Ministry of
Agriculture and Rural Development (MARD).
Five-percent
broken rice accounted for 28.8% of the total rice export volume, an increase
of nearly 30% against the corresponding period of last year, trailed by
fragrant rice which made up 24.67% of the total export volume, up 15.36%.
Currently,
Vietnamese rice claims a large market share in many importing countries.
Foreign
retailers drive the rise of convenience stores in Vietnam
Vietnamese
consumers are making their way from traditional markets into air-conditioned,
brightly-lit convenience stores.
With
the growing spending power of middle class consumers, the Vietnamese retail
market is in need of new and modern outlets. And for many investors, the race
has begun.
Vietnamese
conglomerate Vingroup is expected to hire 10,000 employees to serve its
expansion of supermarkets and convenience stores this year.
The
company says it will launch about 50 supermarkets and 360 convenience stores.
But it
is foreign investors that are driving the growth of the local convenience
store market.
In
February,
Singaporean
Shop&Go has opened 126 stores since its arrival in 2005, becoming the
leading convenience store chain in
More
competition is expected as 7-Eleven, a major Japanese company, has also
announced plans to enter the market in 2017.
Another
Japanese retailer, FamilyMart, has already established a foothold in
Dinh
Thi My Loan, chairwoman of the Association of Vietnam Retailers, said
convenience stores expand in the context that local people, with higher
income, have a stronger demand for higher quality of goods and services,
compared to a few years ago.
They
often opt for convenience stores instead of small grocery shops and
traditional markets for their shopping, Loan said.
According
to a recent report of Nielsen, consumers have shifted away from wet markets
and traditional trade stores in recent years.
The
share of wet markets and traditional grocery stores respectively declined 5%
and 17% in 2014 compared to 2012. Customers’ visit frequency also decreased,
said the report.
Meanwhile,
the need for convenience stores continues to grow, especially in urban areas
in
Convenience
stores rose from 147 stores in 2012 to 348 in 2014, while mini-supermarkets
increased from 863 outlets in 2012 to 1,452 in 2014.
On
Nielsen
attributed the growth in a large part to the increase of "time-poor and
predominantly young shoppers" in the country.
“Consumers
are increasingly demanding products and solutions that help them in their
increasingly busy life," Vaughan Ryan, Managing Director of Nielsen
"As
a result we will see the emergence of both the convenience channel and
e-commerce in
Nguyen
Bao Loc, vice general director of retailer Intimex
Investors
could gain profits easily because rents are cheap, around US$9 per square
meter. The rate for a good site to open a supermarket may cost ten times
more, he said.
With a
relatively small outlay of just around US$10,000 to US$20,000, it also takes
less time for investors to break even with a convenient store that can carry
up to 2,000 items of goods, he said.
According
to experts,
Nguyen
Huong Quynh, head of Nielsen
Meanwhile,
the ratio in
Despite
bright prospects for convenience stores in
This
could be seen from the case of a joint venture between Ministop, an affiliate
of
They
aimed to develop 500 convenience stores called G7 Mart-Ministop across the
country within five years from 2011.
However,
their partnership ended early this year, after only 17 stores had been
opened.
The
venture has reportedly failed to reach the target because of difficulties in
finding premises in
Commenting
on the reasons for the end of the partnership, industry insiders said the two
sides have committed that the stores would sell only locally produced goods.
As a result, their stores have failed to ensure an abundant supply of
products and offer competitive prices, according to local media.
Industry
insiders have also confirmed that foreign retailers are dominating the
market.
An
industry insider said most retailers in
“It’s
not time yet to make profits; it's time to grab more market share,” the
insider said.
Retailers
often suffer losses in the first four to seven years.
Losses
may prove a problem for local firms, who often are short on capital and
cannot compete against foreign chains with deep pockets.
Retail
and consumer services sales grew 6.3% last year to VND2.945 trillion
(US$138.2 million), outpacing the 5.6% growth in 2013, according to official
data.
The
rapid growth comes from opportunities created by trade agreements with other
countries and
The
Vietnamese M&A market heated up again last year reaching US$4.2 billion,
up 15% from 2013. The average was worth about US$11 million. Most of the
deals involved large foreign corporations.
Retailing
was the biggest attraction: 36% of the value of the M&A deals were in
retailing. With a population of 90 million, 60% of them of working age,
Last
year, Vingroup became a dominant M&A player by acquiring Ocean Mart to
build its Vinmart brand. Other noteworthy deals are Thai BJC Group’s
acquisition of Metro Cash & Carry Vietnam and Aeon of Japan’s plan to
invest in Citimart and Fivimart.
The
second most attractive sector was consumer goods manufacturing, with 21% of
total M&A value in 2014.
By the
middle of this year, the banking sector had seen mergers between Vietnam
Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and
Petrolimex Group Bank (PG Bank), between Saigon Commercial Bank (Sacombank)
and Phuong Nam Bank, and between the Bank for Investment and Development of
Vietnam (BIDV) and the Mekong Housing Bank (MHB).
Nguyen
Thanh Ha, Director in charge of customer service for Vietnam Prosperity
Commercial Bank (VPBank), said “there are well-run businesses who want to
expand their investment in already successful areas but need capital. They
are ready to call on trading partners who have the same business and
orientation to help them grow in a sustainable manner for their mutual
benefit. This is an obvious orientation in M&A deals that we are
promoting.”
Economists
say M&A activities in Vietnam will boom this year because the law on
investment and the revised enterprise law took effect early last month along
with the removal of the foreign ownership limit for listed companies, the
accelerated equitisation of several large SOEs, the continued interest of
foreign investors, and the growth of domestic companies.
Thai
Viet Anh, Deputy Director of PetroVietnam Securities Incorporated, said
“starting this year, state-owned enterprises are likely to experience many
M&A deals because, first, it’s pursuant to the government’s directive to
speed up SOE restructuring and second, there are mechanisms for SOEs to sell
shares more flexibly to shareholders, especially foreign investors.”
Experts
on August 11 expressed doubts about
They
were discussing targets set by Government Resolution No 19/NQ-CP on improving
the business environment and national competitiveness in 2015 and 2016 by
reducing costs, time and risks involved .
By the
end of this year, the Department of Customs plans to reduce time spent on
export customs procedures to 13 working days and to 14 working days for
imports.
Nguyen
Dinh Cung, director of the Central Institute for Economic Management, said
customs had been very progressive in reviewing more than 300 administrative
documents for adjustment.
There
were documents that hindered businesses' activities, but Cung said he thought
it would not be possible to have them amended by the end of this year.
Nguyen
Van Than, vice-president of the Vietnam Association of Small and Medium
Enterprises, agreed. "It's too ambitious," he said.
Than
cited the recent draft circular 19 from the Ministry of Health on Government
examination of imported food. The document proposes that issuing certificates
for qualified food be done by the Ministry instead of customs agencies as at
present.
"That
is adding to administrative procedures. We must train our staff so they can
directly deal with on the spot issues. Waiting for the ministry to issue
certificates would take days," he said.
Cung
from the Central Institute for Economic Management said when it came to
improving trade and business, customs couldn't do it alone.
"The
role of ministers is very important, they must be the one who supervise,
review and push the tasks assigned to their sector. Only by smooth
co-ordination among ministries and the customs sector can resolution goals be
achieved," Cung said.
In
2014, the Government issued Resolution No. 19/NQ-CP on major tasks and
solutions for improving the business environment and national
competitiveness.
The
Resolution noted the reduction in the time spent to pay taxes from 573 to 247
hours per year, adding that this would be reduced to 167 hours due to changes
to the Tax Law that came into effect on January 1.
The
latest Doing Business report by the World Bank, released last October, ranked
Also,
according to a World Bank report, the average time taken to finish import
procedures in
"If
we could cut down customs procedures, we could save US$1 billion each
year," Cung said.
Livestock-poultry
industry to suffer most after major trade pacts take effect
Comparatively
advantageous industries are expected to benefit the most, while
disadvantageous industries, like livestock and poultry, may suffer, albeit to
different degrees, according to the “Analyzing the Impacts of TPP and AEC on
The
TPP is a proposed regional free trade agreement aimed at eliminating tariffs
and lowering non-tariff barriers that is being negotiated by 12 countries
throughout the Asia-Pacific, including Australia, Brunei, Canada, Chile,
Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.
As
planned, the Association of Southeast Asian Nations (ASEAN), which includes
such countries as
The
livestock and poultry sector, the second-largest of
The
livestock industry has low competiveness, having mostly small-scale farming
and production, heavy dependence on imported breeds and feeds, common disease
problems, limited slaughtering hygiene and food safety and environmental
pollution, according to the research.
These
issues permeate all livestock sub-sectors, such as swine, poultry, cattle,
and milk.
The
consequences are low productivity and production output, and the increasing
need for imports from TPP countries, especially the
Domestic
livestock production will face further and fiercer competition when
The
report also revealed that in both free trade blocs, output will decline in
almost all livestock industries, except for other animal products, mainly
live swine and poultry.
Moreover,
the declining output will also lead to a drop in demand for both skilled and
unskilled workers in the livestock sector.
Given
the low productivity and competitiveness of the industry, poultry and swine
meat producers will suffer the most in terms of output and welfare, according
to the research.
However,
the current consumption habits of Vietnamese people, most of whom prefer
fresh/warm meat over frozen one, may slow down the impacts, while milk and
beef producers have a better chance of survival.
Considering
the overall livestock sector, consumers and importers will have access to
cheaper products, while producers and exporters will be heavily affected as
they will not be able to compete with the influx of imports from other
countries, such as bovine from
Along
with this, the loss of import tariff revenue will cause the welfare of the
livestock sector to decline after the TPP comes into effect.
In the
short term, as consumer habits cannot change quickly, the impacts of trade
liberalization on domestic producers will not be as severe.
However,
in the mid and long term, as frozen meat will become more widely accepted,
domestic production will face more difficulties in competing with meat products
from TPP countries.
As a
result, the sector needs to undertake quick restructuring efforts to improve
efficiency in facing foreign competitors, the report suggested.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Sáu, 14 tháng 8, 2015
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