BUSINESS IN BRIEF 8/10
Interest groups hinder listing process of privatized
Vietnamese SOEs
Certain interest groups trying to prevent Vietnam’s
state-owned enterprises (SOE) from listing on the stock market following
their privatization are responsible for causing losses to state coffers, a
local finance association warned.
While law stipulates that state companies list and
reduce their state holdings once going public, few privatized SOEs have done
so over the last decade, the Vietnam Association of Financial Investors
(VAFI) said in a document sent to the prime minister on October 5.
Under the government’s directive No. 51, SOEs are
required to complete their public company registration and the listing process,
and start trading on the stock market within 90 days of their privatization.
“However, hundreds of privatized state enterprises have
deliberately defied the directive, while representatives of the state capital
refused to reduce the government’s stake in the companies as required,” VAFI
said in the document.
Representatives of the state holdings at those SOEs “do
not want transparency,” so that they can continue engaging in corrupt
practices or their appropriation of state and shareholder assets, the association
said.
As long as the SOEs remain unlisted, the interest
groups can manipulate the companies and their assets, according to VAFI.
“By preventing privatized companies from listing, these
interest groups reduce investor and shareholder confidence, which in turn
reduces share prices and devalues the assets of those firms,” VAFI deputy
chairman Nguyen Hoang Hai was quoted by the Voice of Vietnam radio as saying.
“Members of these interest groups then purchase shares
from those companies at cheap prices in order to take full control.”
Sabeco and Habeco, Vietnam’s two largest beer makers,
are prime examples of the issue, according to VAFI.
“These companies have employed all available strategies
to avoid listing themselves in the last nine years, and only started to begin
the process after Prime Minister Nguyen Xuan Phuc directly requested them to
do so,” VAFI deputy chairman Hai said.
The Vietnamese government is slated to sell its entire
89% stake, worth an estimated US$1.8 billion, in Sabeco by 2017 and begin
listing the firm on the Ho Chi Minh Stock Exchange by late November or early
December, CEO Le Hong Xanh toldReuters in an interview on October 5.
VAFI said the ministries that manage SOEs hold some
blame for the companies’ unwillingness to list on the stock market.
Sabeco and Habeco are both managed by the Ministry of
Industry and Trade, and it was the former minister Nguyen Huy Hoang that had
prevented these companies from listing, the association said.
The reason, according to VAFI, is that Hoang and his
then deputy, Ho Thi Kim Thoa, “wanted to appoint relatives with little
capacity and ability to top positions within the companies,” something they
would never be able to do if the beer makers were listed.
In fact, Hoang’s son, Vu Quang Hai, is a member of the
board of directors and deputy CEO of Sabeco. Hai told local media in June
that his appointment was “in line with procedure” and there was no such thing
as a “father favoring his son.”
VAFI underlined that if the directive No. 51 had been
strictly followed, the state budget could have pulled in US$15 billion.
The association suggested that the government strictly
sanction any individuals, ministry leaders, or local administrators that
hinder the listing process of privatized state companies.
“If the prime minister sets penalties, then directive
No. 51 will be properly followed and the state budget can get US$15 billion
from the privatization and state holding sales of certain SOEs,” the
association concluded.
Jetro seeks investment opportunities in Haiphong
A Japan External Trade Organization (Jetro) delegation
comprising of Japanese businesses operating in China and Hong Kong made a
fact-finding tour of Haiphong City on November 5 to explore investment
opportunities.
At a working session with the Japanese businesses, Le
Tri Vu, director of Haiphong city’s investment, trade and tourism promotion
centre, briefed the guests on the city’s potential, socio-economic strength
and infrastructure development.
He also provided them with information about
population, human resources, infrastructure, logistics services, foreign
investment, import and export value and incentives at industrial zones.
Representatives from Haiphong departments and
industrial zones answered the guests’ questions related to investment in the
city.
The Jetro representatives proposed organizing monthly
meeting between the city leaders and Japanese businesses operating in the
city.
Haiphong welcomes and encourages Japanese businesses to
invest in low pollution and green industries, high added-value processing
establishments and hi-tech industrial zone’s infrastructure and the support
industry, the city leaders said.
Haiphong city’s skilled human resources can meet
requirements of investors. Besides, it is the sole locality in northern
Vietnam having multimodal transport spanning from road, railway, seaway and
domestic waterway to airway and a deep-water port and an international
airport.
Vietnam ends tax breaks on car imports for overseas
Vietnamese
Some importers have abused the policy to avoid huge
taxes on luxury cars.
Vietnam's government has abolished tax exemptions on
cars imported by returning Viet Kieu (overseas Vietnamese) following
suspected smuggling of luxury vehicles.
A government decision issued last month vetoed a
decision made in August 2015 that granted import tariff and VAT exemptions
for cars imported by overseas Vietnamese who return to live or work in
Vietnam.
The old rule allowed them to import a car and a
motorbike duty-free as used assets if they were moving back permanently or
working in Vietnam at the request of government agencies for at least 12
months.
But many people have abused the policy to import luxury
cars without paying taxes to resell them in Vietnam.
Some people have also registered for permanent
residency in Vietnam to enjoy the benefit without actually living in the
country, local media reported.
The finance ministry called for the policy to be
abolished in August, saying that some car importers have abused it to evade
huge taxes.
More than 1,000 cars have been imported under the
policy, but fewer than 100 are registered under the name of an overseas
Vietnamese, it said.
Customs agencies found most of the cars imported under
the policy are new and luxury cars.
In modern Vietnam, a high-tech economy is a future far
away
Decades-old technologies are widely used across most
sectors, keeping the country from becoming more competitive in the global
market.
Vietnam’s backwardness in technology is dragging down
its economic growth.
As the country is trying to leave its mark in the
global economy, it has no other option but to move up the value chain and
away from the traditional low-wage, low-tech model.
There has been some success. Statistics show that
high-tech products contributed 28.7% in the country’s gross domestic product
in 2013, up from 19.1% in 2012 and 11.7% in 2011. The goal is to bring this
ratio to 45% by 2020.
The government seems to be fully aware of the
importance of technology in manufacturing. It has been pushing for the
adoption of modern machinery and production methods in both labor-intensive
industries that make garments, shoes or furniture, and capital- and
technology-intensive sectors such as automobile and electronics.
Over the past five years, the Vietnamese government has
invested about VND10 trillion (US$450 million) in technology and science. And
since 2001, it has consistently set aside about 2% of the annual state
budget, or 0.5% of the GDP, to introduce scientific and technological
advances to various industries.
Despite all these efforts, Vietnam is still 50 to 100
years behind the most modern countries in the world in terms of technology,
according to the Ministry of Science and Technology. Compared to the world’s
average level, its technology is between two and three generations, or 20
years to 30 years, behind.
The country’s support industries, which urgently need
technological advances to boost productivity, remain weak, said Pham Tuan
Anh, deputy head of Heavy Industries Department under the Ministry of
Industry and Trade.
Enterprises in these industries currently account for
only 0.03% of the country’s total number of businesses. The lack of local
suppliers has forced Vietnam to import nearly 90% of raw materials, spare
parts and components.
Domestic companies in support industries can only meet
about 10% of the demand, Anh added.
Data show the ratio of locally sourced components in
automobile manufacturing is ranging from 20% to 30%. For textiles and
garments as well as footwear, it is around 10%.
Local garment companies have to import more than 65% of
raw materials, including fabrics and other accessories from overseas,
especially from China, which owns the bulk of the world’s polyester
production and is one of the top producers of cotton, said Le Quoc, a senior
advisor to the Vietnam Textile and Garment Association.
Support industries are currently controlled by
foreign-invested companies, mainly from Japan, the Republic of Korea and
Taiwan.
Official figures show about 80% of parts suppliers in
Vietnam, including electronic and other metal parts, are foreign companies.
The Vietnamese government has worked on a plan to
change this.
The goal is that in the next four years local support
industries will have 1,000 suppliers that can meet 45% of the manufacturing
sector’s demand. By 2030, there will be 2,000 suppliers that meet 70% of the
demand.
In its drive for modernization, the country is also
forecast to import machinery and equipment worth US$250 billion between 2011
and 2025.
Vinamilk products go online
Vinamilk, the nation’s leading dairy processor, has
launched a website at giacmosuaviet.com.vn where customers can order any of
its products and have them delivered home.
Vinamilk said a wide selection of products are
available on the website, such as powdered and sweetened condensed milk, soya
milk, nutritious powder, beverages, yogurt, ice cream, and cheese. They can
pay by cash upon delivery, and by debit or credit card including Visa,
MasterCard and JCB.
For consumers in inner-city districts of HCMC, they can
receive Vinamilk products on the same day if they place orders before 10
a.m., or within 24 hours of the next working day depending on confirmation
time. Free delivery applies to orders worth at least VND300,000 each
(US$13.5).
Delivery service is available from Mondays to
Saturdays, except for holidays.
Online shoppers can enjoy the same promotion programs
as those who buy products at Vinamilk stores.
Vinamilk is the first Vietnamese company in the fast
moving consumer goods segment that has launched its own e-commerce site.
Currently, Vinamilk has 16 factories with 13 of them in
Vietnam and the remainder in the U.S., New Zealand and Cambodia. The company
is looking to generate revenue of around VND44.5 trillion (about US$2
billion) this year.
French firm keen to invest in HCM City's infrastructure
French-based VINCI Construction Chairman Jerome Stubler
has expressed his firm's interest in infrastructure development in Ho Chi
Minh City, especially in building metros and flooding prevention works as
well as turning waste into energy.
At an October 5 meeting with with Chairman of the Ho
Chi Minh City People’s Committee Nguyen Thanh Phong, he said the company is
also keen to invest in housing development and the construction of
high-rises.
Phong told his guest Ho Chi Minh City welcomes VINCI
Construction’s investment in these sectors, adding that local authorities
will offer the best possible conditions for the company as well as other
French investors.
VINCI Construction has operated in Vietnam for more
than 20 years. In 2014, it signed a two-year contract with the Ho Chi Minh
City University of Technology on a training programme in advanced
technologies in civil engineering.
Government pledges favorable conditions for businesses
As from October 5, aides of the Minister and Head of
the Government Office will directly gather businesses’ opinions and proposals
through a government website at doanhnghiep.chinhphu.vn.
At a recent regular media conference in Hanoi, Minister
and Head of the Government Office Mai Tien Dung said the move is part of
efforts to build a facilitating, transparent, and incorruptible government.
“This government website targets businesses, and there
will soon be another website for the people. Information is publicized.
Businesses’ petitions will be answered. We will establish a working group to
check on the process and I myself will address business queries," he
said.
Nguyen Thi Hong, Deputy Governor of the State Bank of
Vietnam (SBV) mentioned the possibilities of cutting loan interest rates.
“The SBV Governor has issued Directive No4 on balancing
capital recourses, the proper use of capital, reducing costs and loan
interest rates. Some commercial banks have already implemented this plan.
From now to the end of the year, demands for credit tend to rise. Some major
commercial banks have also lowered deposit interest rates, paving the way for
further cuts in loan interest rates," she said.
Samsung wants Vietnam to waive taxes for recalled
Galaxy Note 7
The company doesn't want to pay tax twice for sending
out replacement phones.
Korean tech giant Samsung has asked Vietnam to waive
import/export duties and VAT for the faulty Galaxy Note 7 smartphones that it
has been recalling globally.
The brand new phablets are produced by the
Vietnam-based Samsung Electronics Vietnam Thai Nguyen (SEVT) in the northern
province of Thai Nguyen.
An employee uses a Samsung Electronics' Galaxy Note 7
new smartphone at its store in Seoul, South Korea, September 2, 2016. Photo
by Reuters/Kim Hong-Ji
In a recent letter sent to the General Department of
Vietnam Customs, SEVT said under the global recall and exchange scheme
announced in early September, the recalled smart phones from end-users will
be shipped to SEVT.
The company will then send back new mobile phones with
the same IMEIs (International Mobile Equipment Identities) and serial numbers
to customers.
The Korean company wants the customs office to treat
the recalled and exchanged smart phones as re-export commodities, which are
currently exempt from taxes.
Given the size of the recall and exchange program, SEVT
hopes Vietnam Customs will view it as “a special and urgent situation” and
hopes to receive feedback from the department.
SEVT’s proposal is under consideration.
Samsung announced on September 2 a recall of at least
2.5 million Galaxy Note 7 smartphones in 10 markets, including the Republic
of Korea, due to a faulty battery that causes the phones to catch fire,
offering refunds or replacement devices with safe batteries.
PM suggests hi-tech and organic farming for national
agriculture
Prime Minister Nguyen Xuan Phuc said high-technology
and organic farming would be crucial for the development of Vietnamese
agriculture when touring Vingroup’s high-technology agricultural project in
Tam Da commune, northern Hai Phong city on October 5.
The VND189 billion Hai Phong project is among 12 farms
developed by Vingroup’s subsidiary VinEco across the country growing safe
vegetables.
The farm, covering 46ha, including an open-air area of
over 28 ha, and a glasshouse area of 10.7 ha, became operational early this
year, growing 14 species of vegetables using no pesticides with an average
output of 250 tonnes per month.
The PM praised the model for increasing labour
productivity and supplying the market with safe products.
The leader also lauded the efficient coordination
between the company and local farmers, suggesting that it should be stepped
up during rural area construction.
He reminded project insiders to observe their
commitments, especially those pertaining to food safety, to ensure the
quality of products.
VinEco should provide employment opportunities for
those people who were relocated for the project to enable them to earn
substantial, stable incomes, the PM noted.
VinEco said it will grow vegetables and plants suitable
with conditions in Hai Phong for local consumption and export.
Retail sales slow down over nine months
The total revenue from retail trade and services topped
US$118.4 billion during the first nine months of this year, surging 9.5
percent year-on-year, according to the General Statistics Office (GSO).
Excluding inflation, the increase would be 7 percent,
lower than the 9.2 percent seen in the same period last year, GSO said.
GSO statisticians blamed the slow growth of retail
trade in the period for the fact that local consumers have curbed their
spending due to price fluctuations in the consumer market and other services
such petroleum, health-care and school fees.
Retail sales of goods, which accounted for more than
three fourths of the total sales, reached 90.2 billion USD from January to
September, up 9.7 percent against last year’s corresponding period with
several sectors recording a positive revenue increase including food and
foodstuffs (up 13.2 percent); home appliances (up 10.1 percent) and textile
and garments (up 9.5 percent) and transport services (up 7.6 percent).
Meanwhile, retail sales in accommodation, restaurant
and catering services, which accounted for 10 percent of the total, posted a
revenue of 13.64 billion USD, a yearly rise of 8.3 percent.
Some localities recording an encouraging retail revenue
growth included Bac Giang, Lang Son and Hanoi while several others witnessed
a sale reduction such as Hoa Binh, Ha Tinh, Phu Tho, Nghe An and Lai
Chau.
The country’s retail turnover is expected to rise to
179 billion USD by 2020, the Association of Vietnam Retailers (AVR) has
forecast.
According to AVR, the sector’s huge potential has
attracted a lot of local and foreign investors, especially in HCM City, the
country’s economic hub.
Uber faces Vietnam's scrutiny for 'Saigon has fallen'
ad campaign
The choice of words has been questioned by Vietnamese
officials and the company may be punished with a fine.
Uber Vietnam is likely to face a fine for running an ad
campaign built around the phrase "Saigon that thu" (Saigon has
fallen) to promote its ride-hailing service during days of heavy rain and
flooding.
According to local media, the Ministry of Culture,
Sports and Tourism on October 3 sent a note to the culture departments in Ho
Chi Minh City and Hanoi, ordering an inspection into the ad campaign.
According to the note, phrases such as "the fall
of Saigon" or "the collapse of Saigon" have been used by
Western media to refer to the historic day of April 30, 1975, when the
US.-backed Saigon regime was defeated.
The poor choice of words may make people think about
war, the note said.
The full slogan "Saigon that thu nhung Uber khong
that thu" (Saigon has fallen but Uber has not) appeared on Uber
Vietnam’s Facebook page soon after a historic downpour flooded several areas
in Ho Chi Minh City on September 26. Its prices reportedly surged 4.9 times
due to high demand on that day.
The company paid VND241 million (US$10,667) in taxes to
Vietnam for the first time last month, after being accused of tax evasion
over the past two years.
Uber proposed legal frameworks for providing
ride-hailing services in Vietnam in October last year, but the proposal was
rejected as the company did not designate a legal entity that would handle
contracts with Vietnamese partners.
Vietnam’s Ministry of Transport then asked Uber to
revise its proposal. No further action has been taken since.
For now, only Grab Taxi, a Malaysia-based company, and
Vietnam’s Vinasun have received permission from local authorities to operate
e-hailing services.
Foreign property portals open in Vietnam
As Vietnam’s property market attracts increased
international attention, more foreign property portals are being set up to
fill in a gap.
In September, rapidly-growing Asian property portal,
Dot Property, opened an office in Ho Chi Minh City, after seeing increased
traffic on its website.
Dot Property Vietnam, which began operating earlier
this year, is the most recent addition to the growing Dot Property network.
Dot Property sees huge potential in Vietnam, given the
always-online lifestyle of the target market – which finds the Internet to be
the most accessible tool when looking for property.
According to Alva Horgan, managing director for
international markets at Dot Property, the growing population of young
professionals in the country will be a source of future demand for
residential properties.
“They will be searching online in greater numbers and
our platform is aiming to meet this rising demand,” he said. “Since arriving,
Dot Property Vietnam has already signed some of the country’s leading
property developers, real estate agents, and other companies, and that number
continues to grow on a daily basis.”
Meanwhile, TimHome.vn is the recently launched local arm
of international real estate technology company Homsters.com. The firm has
raised over US$1 million from various Vietnamese and international investors
who believe in the team, the business model, and in the potential of the
Vietnamese market.
Andrew Olejnik, co-founder of Homsters.com and CEO of
TimHome.vn said, “We are constantly in discussion with venture capital
companies and investors from around the world, attracting additional equity
to fuel our growth in Vietnam.
“We estimate that within the next couple of years we
will invest an additional US$3-5 million in development. We understand that
the real estate market is a very complex one and we are ready to continue
investing to create a market leader,” he added.
According to Jones Lang LaSalle (JLL) Vietnam, project
information transparency has notably improved in the residential market. In
recent years, numerous policies and regulations in terms of transparency have
been implemented.
More recently, a list of mortgaged projects at local
commercial banks has also been published, in response to the local
authorities’ request for more clarity on project status across the second
city. These steps are collectively being seen as positive actions to promote
transparency in the market.
Trang Le, manager of research and consulting at JLL
Vietnam, said, “With the development of advanced technology and an influx of
capital into the Vietnamese real estate market, transparency will need
further enhancement in the future.”
She noted that sophisticated technology will provide a
better tool for improving market transparency, and the strong influx of
capital will push the demand for transparency to a higher level than
previously seen.
Vietnamobile lowers price for international calls
Vietnamobile has cut its international call price down
by two thirds.
On October 5, 2016, Vietnamobile announced that is now
offers international call rate same as local call: at only VND1,500 (6.72 US
cent) per minute for calls to 11 countries including China, India, the US,
Vietnam, Thailand, the Republic of Korea, Canada, Malaysia, Australia, Hong
Kong and Singapore.
The old price for call to these countries was at least
VND4,400 (20 US cent), higher than the price offered by the three major networks
namely Viettel, Vinaphone and MobiFone. The new rate is more competitive.
“Vietnamobile is committed to providing exclusive
offers to let customers stay connected whenever, wherever and overseas. With
this new service, our customers can have hassle-free calling to their family
or friends within Vietnam and selected countries overseas,” said Elizabete
Fong, CEO of Vietnamobile. “This is also a very best-value service for all
foreign visitors to Vietnam, leisure or business so they call home at
preferential rates.”
Vietnamese mobile network service providers are
struggling with the falling popularity of overseas calling, as people mostly
use Over-the-Top (OTT) services for this purpose.
At the conference to review government management in
July and August, held last month by the Ministry of Information and
Communication, deputy general director Bui Son Nam of MobiFone said MobiFone
had seen a fast decrease in the number of calls from international
destinations to Vietnam, with the August results 15% lower than in July.
Meanwhile, Tran Manh Hung, general director of VNPT,
said that his company has seen a decrease in both to and fro international
calls. The two companies asked the MIC to eliminate the currently effective
price floor on international calls.
HCM City leader encourages EPZ to develop high added
value industries
Tan Thuan Export Processing Zone (EPZ) should continue
developing high-tech industries and support industry in the upcoming time,
said deputy chairman of the city People’s Committee Le Thanh Liem at the
celebration on the 25th anniversary of its establishment yesterday.
In addition, it should continue improving technical
infrastructures and workers’ lives, transferring from labor intensive
industries into hi-tech processing and manufacturing to increase products’
added value, he said.
Mr. Liem asked relevant agencies to positively support
the zone’s management to implement one door mechanism to facilitate the
implementation of investment projects, solve arising problems and attract
more investors.
The agencies and especially District 7 should give the
zone assistances to do export import procedures, connect with surrounding
roads, develop human resources, protect the environment and better the caring
of workers’ life.
At the anniversary, the city People’s Committee granted
Tan Thuan Ltd Company a certificate of merit and traditional flag for
remarkable contribution to the city’s development.
Director General of Tan Thuan EPZ Tsao Chung Hung said
that the company has attracted 192 businesses from 20 nations with the total
registered capital of US$1.8 billion. Of these, 181 companies have increased
investment capital.
The zone’s export turnover has totaled US$3.8 billion
and products have been exported to 43 nations.
HCM City farm produce fair meets locals’ safe food
demand
A safe farm produce fair opened in Ho Chi Minh City on
October 1, aiming to help locals access safe products amidst the current
complicated food safety situation.
The fair, which will be held every Saturday in District
10, provides a diversity of food and foodstuff from rice, vegetable to pork,
seafood and fruit, with reasonable prices, said
Nguyen Van Truc, deputy head of the municipal
Department of Agriculture and Rural Development.
He revealed that all products introduced at the fair
are produced to the VietGAP and GlobalGAP standards, or within the safe food
production chain of the city, with strict inspection of authorities at the
farm and the fair.
Earlier, the department implemented three pilot events,
which were lauded by locals. More than 20 orders was made between businesses
and farmers, including 15 big ones with a total supply worth 2.4 billion VND
each month, he added.
The department plans to expand the model to other
localities across the city, initially to District 2 and Tan Binh District,
thus meeting high demand for safe food of locals.
Vietnam must be more competitive: report
Vietnam must continue to maintain stability, accelerate
restructuring and improve the competitiveness of the economy in the face of
ongoing global headwinds, members of a think-tank report.
Deputy Prime Minister Vuong Dinh Hue asked members of
the National Financial and Monetary Policy Advisory Council to closely
monitor the financial situation throughout the world, during their
third-quarter meeting in Hanoi on September 30.
The members agreed that it was necessary for Vietnam to
create a stable business and investment climate, renew its growth model and
expand labour productivity.
Vietnam has targeted its gross domestic product (GDP)
to grow at 6.7 percent, along with exports to grow at 6-7 percent, next year.
Further, the consumer price index (CPI) is expected to
rise by some 4 percent, with total social investments accounting for some
31.5 percent of GDP in 2017.
Deputy Minister of Planning and Investment Dao Quang
Thu announced these figures after the country’s goal of reaching 6.7 percent
economic growth this year has proven largely unfulfilled.
There is, however, a strong possibility that the GDP
will grow by 6.3 percent and the CPI will rise by less than 5 percent in
2016, he said, adding that total social investments have reached more than 1
quadrillion VND, or 44.44 billion USD, during the first nine months of the
year.
Thu said the slow recovery of the global economy is
likely to impact on Vietnam’s export growth next year, while uncertain global
oil prices and risks of inflation caused by adjustments in domestic
healthcare and education services are resulting in macro-economic imbalances.
Meanwhile, Nguyen Thi Hong, Deputy Governor of the
State Bank of Vietnam, said that inflation has “basically been stable”,
although the central bank pumped a “relatively large” amount of money into
the economy to support economic growth this year.
Hong added that the central bank has steadied treasury
bill and government bond issuances with foreign exchange buys to assure
appropriate monetary operations. State bond issuances alone have amounted to
250 trillion VND this year, in line with national quotas.
She also said that a change in the central bank’s
operations of exchange rates, with the reference rate now adjusted daily, has
reduced foreign currency speculation and eased pressure that could cause
interest rate hikes.
Overall, credit growth is likely to reach targeted
levels of 18-20 percent this year, she said.
Members of the council recommended that the Ministry of
Planning of Investment build a set of criteria to assess the efficiency of
investments more precisely. This will assure authorities have a clearer look
about how to assist enterprises and foster economic growth.
Economist Tran Dinh Thien said although start-ups are
now encouraged in national development schemes, new firms should not be
established too hastily, because inventories and bad debt remain major issues
that the country has to deal with.
HDbank named Vietnam’s best managed company
HDBank has won the award for the n Best Manged Company
iVietnam in 2016 from the UK-based financial magazine, Euromoney.
It is its second straight win, the only Vietnamese
company to do so.
HDBank won the award because it met all seven criteria
– having a comprehensive and coherent business strategy, a competent
corporate governance system, an accessible senior management, transparent
accounting, useful and informative website, and corporate social
responsibility and providing best value for shareholders.
The winners were chosen following a vote by 500
analysts from leading banks around the world.
Marcus Langston, editor-in-chief of Euromeny Asia magazine,
told the awards ceremony in HCM City this week that HBBank and its
subsidiaries achieved a combined pre-tax profit of 788 billion VND (35.3
million USD), a year-on-year increase of 27 percent.
Ninh Thuận to grow more grapes
The central province of Ninh Thuận plans to expand its
grape cultivation area by 7,900 hectares, of which more than 2,550ha will be
safe grape fields, according to the provincial People’s Committee.
Speaking on Saturday on the sidelines of the
International Grape and Wine Festival being held in the province, Lê Văn
Bình, vice chairman of the provincial People’s Committee, said the industry
aimed to transfer technology, import more grape varieties and create a
geographical brand for locally produced wine and grapes.
Bình said the province plans to create the country’s
largest grape cultivation area.
However, he noted that a number of challenges remained,
including climate change and poor facilities and technologies, which affected
grape quality and productivity.
In addition, local grapes and grape products cannot
compete with imported products.
So far only eight businesses have been certified as
“Ninh Thuận grape” by the province’s grape association.
Many of the businesses are family-owned with limited
cultivation area. Many of them fail to apply cutting-edge technologies in
cultivating safe grapes.
The festival and seminar gave farmers an opportunity to
learn from local and foreign experts about the latest technologies, and find
markets for grapes and grape products, such as raisins, jelly, jams and wine.
According to Bình, the province should continue
building a geographic brand for grape and grape products in Ninh Thuận in
order to create a brand name for the products in the province.
Linkages among grape growers, producers and experts
should also be strengthened to help improve the grape industry, he added.
Nguyễn Văn Mọi, vice chairman of the Ninh Thuận Grape
Association, said the province should build a research centre for grapes and
wine.
Mọi said the quality of wine was still low and that
wine production lacked advanced facilities and technologies.
Wine production needs local raw materials instead of
imports from other countries, he added.
He called on businesses to invest in technology
transfer in grape cultivation for the farmers.
There are nearly 1,200 households cultivating grapes
that conform to VietGAP standards with a total cultivated area of 280ha.
A local grape farmer, who declined to be named, said
farmers in Ninh Thuận Province were facing many challenges, including a lack
of raw materials for wine making, advanced technologies and stable outlets
for their products.
So far, there are 46 businesses producing grape wine
with an output of 230,000 litres per year, according to the province’s
People’s Committee.
Each year, nearly 800 tonnes of grape and grape
products and 15,600 bottles of wine and jelly are consumed.
The province has attracted three grape-cultivation
projects with a total investment of VNĐ304 billion (US$13.54 million).
Grapes, which are a highly valued staple crop in Ninh
Thuận Province, were first introduced to the province in 1960 and
test-planted by the South Central Centre for
Agricultural Technical Research based in Ninh Sơn
District. Commercial production began in the 1980s.
The province currently has more than 1,100 hectares of
grape fields with an average yield of 25 tonnes of fresh grapes per hectare
per year.
Marriott acquires Sheraton Hotels
Marriott International announced on September 30 it was
expanding into 30 of the most desirable and prestigious hotel brands with the
addition of the Starwood Hotels & Resorts portfolio.
The resulting new company will operate or franchise
more than 5,700 properties and 1.1 million rooms, representing 30 leading brands
from the moderate-tier to luxury in over 110 countries. With the completion
of this acquisition, Marriott’s distribution has more than doubled in Asia
and the Middle East and Africa combined.
“Throughout our nearly 90-year history we have never
stopped searching for innovative ways to serve our guests,” said Mr. J.W.
Marriott Jr., Executive Chairman and Chairman of the Board of Marriott
International. “With the addition of Starwood’s strong brands, great
properties, and talented people, we have dramatically expanded our ability to
provide the best experiences to our customers.”
“We also welcome the tremendous responsibility as the
world’s largest hotel company to be a good global steward, providing new
opportunities for our associates and building the economic strength of the
communities we call home.”
Members of Marriott’s leading loyalty programs,
Marriott Rewards - which includes The Ritz-Carlton Rewards - and Starwood
Preferred Guest (SPG) are also invited to link their accounts at
members.marriott.com to enjoy the benefits, recognition and experiences each
program has to offer.
Members will have their status matched across programs
and be able to transfer and redeem points across programs for travel to more
destinations than ever before.
“We believe that Marriott now has the world’s best
portfolio of hotel brands, the most comprehensive global footprint, and the
most extensive loyalty programs, providing an unparalleled guest experience,”
said Mr. Arne Sorenson, President and CEO of Marriott International.
“Combining Starwood’s brands with ours better enables Marriott to reach its
goal of having the right brand in the right place to serve our loyal guests
and welcome new ones.”
“We can now provide a better range of choices for our
guests, more opportunities for our associates, and greater financial benefits
for our owners, franchisees, and shareholders.”
Members who link their accounts will be able to
transfer points at a three-to-one ratio (three Marriott Rewards points equals
one SPG Starpoint) between the programs for redemption stays or on the
Marriott Rewards Experiences Marketplace or SPG’s Moments platform.
Marriott International is the world’s largest hotel
company and based in Bethesda, Maryland, in the US, with more than 5,700
properties in over 110 countries. It operates and franchises hotels and
licenses vacation ownership resorts.
Vietjet offering 1 million cheap tickets on Online
Friday
Vietjet Air will offer 1 million super-cheap tickets
during the “Vietnam’s Autumn Online Friday” event on September 30 for travel
on all its domestic and international flights from October 30 to March 31,
2017.
The 1 million tickets are priced from just $0 and are
on sale from 12pm to 2pm and from just $3 at other times on September 30.
Its new Ho Chi Minh City - Hong Kong route starts on
December 9 and Ho Chi Minh City - Kaohsiung and Hai Phong - Seoul on December
12.
The promotional tickets can be booked at
www.vietjetair.com, compatible with smartphones, or at Vietjet’s Facebook
page (click the “Booking” tab). Payment can be easily made with debit and
credit cards of Visa, MasterCard, JCB, and American Express and ATM cards
issued by 29 Vietnamese banks that have been registered with internet
banking.
According to Mr. Desmond Lin, Vietjet’s Business
Development Director, it provides not only transport services but also uses
the latest e-commerce technologies to offer various products and services for
consumers. “The ‘Online Friday’ event provides a lot of benefits for online
shoppers and is expected to be organized more often to meet increasing online
shopping demand,” he said.
Vietnam’s spending deficit reaches VND154.2 trillion
Vietnam’s budget deficit in 2016 as of September 15 was
estimated at VND154.2 trillion (nearly US$7 billion), according to the
General Statistics Office.
Official figures show expenditure during the period
reached VND819.4 trillion (US$36.9 billion), of which more than 70% went to
regular spending (expenditure for the operation of the State apparatus).
Meanwhile revenues as of mid-September reached VND665.2
trillion (US$29.9 billion), with those contributed by State-owned enterprises
equal to 53.1% of the estimate for the whole year as enterprises in the
mining and hydroelectricity sectors continued to struggle.
In general, government income in the first nine months
of the year failed to meet expectations as a result of falling oil prices and
shifting trade patterns due to Vietnam’s participation in new free trade
agreements.
HSBC warns Vietnam of rising price pressure
HSBC Bank has warned that increasing price pressure is
posing upside risks to inflation and leaving little scope for fiscal and
monetary easing, thus weighing on the country’s outlook over the near term.
In a macro-economic report released on September 28,
the bank’s Global Research team said inflation is not a major concern as of
now because it remains controlled under the 5% target. However, price
pressure is mounting.
Inflation is on the rise, having ticked up 3.3% in
September. Meanwhile, core inflation also edged up to 1.9% year-on-year after
easing marginally in August.
Both food and fuel prices nudged up during the month.
The report said adequate supply helped ease food prices in August, but then
climate and soil conditions caught up and pushed food inflation a notch
higher.
On August 20, Vietnam’s fuel traders adjusted up fuel
prices in line with global oil prices. Retail gasoline costs were 5-7% higher
with RON 92 up by 4.6% and bio-fuel E5 grew 6.8% while diesel rose by 2%.
Coming late into the month, the impact was felt more on the September
inflation reading.
The start of the new school year also led to a
significant surge in education prices, as many provinces revised up tuition
fees to implement a government decree issued last year.
Inflation is likely to feel the push from increased
money supply as well given robust credit growth, HSBC explained.
Furthermore, the National Wage Council has decided upon
a 7.3% average increase in monthly minimum wages across Vietnam for 2017.
Although this is the lowest annual rise since 1997 and seems to be a
compromise between the employers’ proposed increase of 5% and that of
workers, who pushed for an 11% hike, it is far still above the current
inflation rate and may thus prompt second round price gains.
Growing price pressure limits the scope for further
monetary easing in Vietnam, the report said.
Meanwhile, although the financial system has adequate
liquidity now, lending rates charged by banks remain “sticky”; lenders
continue to be cautious given that loan impairments have increased again in
recent months.
The State Bank of Vietnam is encouraging credit
institutions to increase lending while suggesting that they should focus on
priority sectors, including production and trading activities, rather than
real estate.
According to the National Financial Supervisory
Commission (NFSC), the budget deficit as of August 15 had neared VND111.5
trillion (US$4.9 billion), equivalent to about 44% of the estimate for the
entire year. However, the pressure on the budget deficit will likely increase
in the remaining months as infrastructure investment is expected to
accelerate following a government resolution to the effect.
On the other hand, revenue collections from crude oil
and State-owned enterprises (SOEs) are falling behind due to lower fuel
prices and stagnant divestments of the Government’s stakes in SOEs. Until
August, the average selling price of crude oil was US$41 per barrel, well
below the projected price of US$60.
According to the Ministry of Finance, VND10 trillion,
only a third of planned divestment revenues, was raised in the first eight
months of the year.
Despite these challenges, HSBC said Vietnam’s growth
prospects remain promising. For example, the country has signed numerous
trade deals, including those with South Korea, Japan and the European Union.
Vietnam is also trying to quicken the sale of
State-owned enterprises, as it needs the money to offset the budget deficit
and reduce swelling public debt. As part of a massive divestment push, the
country also lifted the cap on foreign ownership in certain sectors.
Ministries told to revise cement industry strategy
Deputy Prime Minister Trinh Dinh Dung has told the
ministries of industry-trade and construction to work with relevant
ministries and agencies to review and revise the zoning plan for mineral
mining for cement production and the cement industry development strategy to
meet actual demand.
There remain many outdated points in the zoning plan
for exploration and exploitation of minerals used to make cement until 2020
as approved by the Prime Minister in Decision 1065/QD-TTg in 2010.
The Ministry of Construction was quoted by the Vietnam
News Agency as saying that there have been additions to the zoning plan but
recent geological surveys of mines showed many changes. Therefore, the
revision of the zoning plan is necessary.
The cement industry development strategy has well met
demand since 2011, according to the construction ministry. On top of that,
the Government has approved removing 14 cement projects with a daily capacity
of less than 2,500 tons of clinker each, equivalent to 910,000 tons of cement
a year from the strategy.
The construction ministry is working on the cement
industry development strategy for the 2017-2035 period with a vision towards
2025 and a revised zoning plan for mineral mining for cement production to
replace the current ones.
The new zoning plan and development strategy for the
cement sector must match the country’s socio-economic performance, and the
market conditions as ordered by the Government. The ministry will propose
policy incentives, demand stimulus and market stabilization policies and the
addition of viable projects for the Government to consider and approve.
The construction ministry will collaborate with
provinces and cities to look into the investment and exploitation of minerals
for cement production, supply and demand for linker and cement as well as
using heat at cement plants for electricity generation.
More than 70 operational cement production lines can
produce a total of up to 82 million tons a year but consumption is about 10
million tons lower than supply.
Haraco, Vietnam Air join forces to lure tourists
Hanoi Railway Transport Joint Stock Company (Haraco),
Vietnam Airlines and the HCMC Tourism Association have inked a cooperation
deal to provide train and air services for people to travel between HCMC and
northern Vietnam.
The deal is expected to help the railway sector lure
more customers amid mounting competition from domestic low-cost carriers.
Nguyen Thi Khanh, vice chairwoman of the association,
said the three sides have cooperated in organizing a trip from HCMC to Hanoi
by train and a return trip by plane. The tour took in tourist attractions in
the northwestern region.
Such a tour is scheduled to be made available on the
market late this year.
Long travels and high fares are the major problems of
railway services. “Compared to services offered by low-cost carriers,
traveling by train is much less competitive, so the three sides have
partnered to solve the problems,” Khanh said.
Last year, Saigon Railway Transport Company cooperated
with the association to serve tourists from HCMC to destinations in the
central region. The company initially cut fares by 20% but later raised the
discount rate to 35% for travel firms to launch cheaper tours.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Bảy, 8 tháng 10, 2016
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