BUSINESS IN BRIEF 5/8

More firms approved to use fast track customs service The General Department of Customs will give Authorised Economic Operator (AOE) recognition to eight more businesses by the end of this year. This follows an online discussion organised by the Hai Quan (Customs) online newspaper on Tuesday. Currently, there are 14 AOE recognised companies that receive preference during customs procedures, which cuts costs and clearance times for goods. According to Nguyen Duong Thai, deputy general head of the General Department of Customs, the agency will sign an agreement on AEO companies with other countries in the near future.- HCM City's high growth sustained Ho Chi Minh City has been focusing on stabilising prices and ensuring adequate supply of goods this year in the first seven months of this year. Chairman of the Municipal People's Committee Le Hoang Quan said official agencies have been monitoring changes in prices, exports, and fluctuations in the global market to help businesses … [Read more...]

BUSINESS IN BRIEF 6/4

HCM City plans to develop education zone The Tay Bac Urban Zone, stretching over 9,000 hectares across HCM City's Hoc Mon and Cu Chi districts, would be put under a socialised programme, according to the municipal People's Committee. Investors in the urban zone's infrastructure will enjoy land use fee reductions as encouragement. According to the planning, the zone will be developed into a centre of education through the construction of many universities. Da Nang gets strict on apartment transfers Da Nang's Construction Department said that it would tighten the management of apartment transfers and strictly handle any illegalities. Department statistics showed that 117 apartment buildings were under construction in the city with a total of 14,962 apartments. IPO Vinasugar I sells handful of stakes Only 436,600 shares, just 3.3 per cent of Vinasugar I stakes, were sold at the company's initial public offering (IPO) on Wednesday. The successful bidding price on the Ha Noi Stock … [Read more...]

Steel industry to see tougher competition with newcomers

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Five new steel mills with a combined capacity of 1.5 million tons per year will start operations this year, making supply further exceed demand and leading to a fiercer competition in the local steel market. The steel mills of Thai Trung Steel Co. in Thai Nguyen, An Hung Tuong Steel Co. in Binh Duong, Middle Region Steel Co., Pacific Steel Co. and Dana-Italy Steel Co. in Danang are scheduled to begin production this year. With the additional capacity of these new plants, the total steel capacity of the country will rise to 11 million tons a year. The annual steel consumption in Vietnam is now some five million tons, less than half of the production capacity of domestic steel mills, said Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association (VSA). While Vietnam's steel exports are facing stronger trade defense in foreign countries, the fact that more steel plants will be put into operation this year will make the competition among local steelmakers more … [Read more...]

BUSINESS IN BRIEF 21/8

Kien's arrest "a personal affair": ACB leader Yesterday's surprising arrest of ACB's founder and one of Vietnam's most well-known tycoons Nguyen Duc Kien will not have any impact on the bank performance, said a senior leader of Asia Commercial Joint Stock Bank (ACB). "It is a personal issue (of Kien)," said Nguyen Thanh Toai, deputy general director cum spokesman of ACB. "Kien is no longer a major shareholder, nor a board member, and are not involved in the bank's board of executives." "The detention of Kien is the decision of the authorities so it does not affect the normal operation of the bank," Toai stressed. … [Read more...]

BUSINESS IN BRIEF 2/8

FIEs expand investment while fresh FDI funds tumble Foreign-invested enterprises (FIEs) further expanded their investments in Vietnam in the year to date, offsetting a sharp fall in the flow of fresh foreign direct investment (FDI) in the period, said the Foreign Investment Agency. In the January-July period, up to 231 operational FIEs registered an additional US$2.83 billion, an increase of 5.2% year on year, while fresh FDI capital in the period totaled only US$5.2 billion, plunging over 44%. The aggregate FDI in the seven months totaled US$8.3 billion, still a fall of 33% from the year-earlier period, according to the agency under the Ministry of Planning and Investment. … [Read more...]

BUSINESS IN BRIEF 29/10

Pilot cooperatives programme to continue Japan and Vietnam will continue to link up to implement the Project for Enhancing Functions of Agricultural Cooperatives in Vietnam - phase 2. The project document was inked on October 25 in Hanoi by representatives of Japan International Cooperation Agency (JICA) and Department of Cooperatives and Rural Development under Ministry of Agriculture and Rural Development. The first phase of the project kicked off in March 2006 aiming to assist Vietnam's government to develop new cooperative models in accordance with the 1996 Cooperative Law. The government is promoting the transformation of traditional style cooperatives which focus mainly on agriculture production. It wants to establish new cooperatives whose activities includes marketing, product processing, joint purchasing of production materials and credit. Despite the high demand from cooperative members, however, little progress has been made because cooperative officers lack … [Read more...]

BUSINESS IN BRIEF 14/10

President attends Vietnam-India Business Forum The Government of Vietnam will create favourable conditions for foreign investors including those from India, State President Truong Tan Sang emphasised at Vietnam-India Business Forum held in New Delhi on October 12. At the gathering, representatives of Indian businesses said that since Vietnam and India established strategic partnership in July 2007, bilateral economic cooperation has increased dramatically. Two-way import-export revenue between the two countries reached US$2.7 billion last year and was estimated at US$1.8 billion in the first six months of 2011. Businesses highlighted the signing of cooperative documents by both governments during President Sang's visit to India. Especially, both countries agreed to increase trade turnover to US$7 billion by 2015. India is keen to import steel, coal, rubber and chemicals from Vietnam and export cattle feed, pharmaceuticals, fabric cotton, machines and metals to … [Read more...]

Domestic businesses struggling on home turf

(VOV) - The successful operation of multinational corporations in Vietnam's supply chain has caused difficulties for domestic businesses to build their own trademarks. Vietnam High Quality Goods Enterprise Association President Vu Kim Hanh says many businesses are finding it difficult to promote their goods on the local market. Every month, the association organizes two rural tours for 50 businesses including Vinamilk and Kim Hang Aluminium & S. Steel Corporation to expand their distribution networks and promote their trademarks. In recent times, the rural demand for consumer goods has declined since farmers in some provinces are unable to sell their products. Another reason is that there is a fierce competition between multinational companies who wish to corner the consumer market by offering reduced price goods. Hanh suggest domestic businesses should work with supermarket managers to gain a leg to stand on home turf. It seems ASEAN's international integration and trade … [Read more...]

Work to resume on Co Chien Bridge project

Trung Chanh Work started on the project on March 7, 2011 with two components at a total cost of nearly VND3.8 trillion. The first component was assumed by BOT Rach Mieu Company, including a 1.6-kilometer bridge of four traffic lanes allowing for a designed vehicular velocity of 80 kilometers an hour. The bridge with a width of 16 meters has a clearance height of 25 meters for ships to navigate under. This component costing some VND2.21 trillion is to be developed under the build-operate-transfer (BOT) format. The second component, meanwhile, is constructed by the project management authority No.7 with the transport ministry active as the project owner. It consists of approach roads from both sides of Ben Tre and Tra Vinh provinces, as well as small bridges on the approach roads, all stretching over 14 kilometers. The scheme has total investment of more than VND1.58 trillion which will be sourced from the State budget. With the construction resumption, the first component, … [Read more...]

Building Confidence in Vietnam Brands

By the middle of 2014, the "Buy Vietnamese" Campaign - a movement that encourages Vietnamese people to give priority to made-in-Vietnam products on their shopping list - has been in place for five years, with positive results. Consumers are increasing their appreciation for Vietnamese goods. According to surveys, 71 percent of consumers have confidence in high-quality Vietnamese goods. Domestic goods still account for a large share, some 80-90 percent, in supermarkets. According to recent surveys by the Trade Unions of the Ministry of Industry and Trade, since the campaign was launched, the localisation rate of inputs, resources and equipment and machinery increased an average of 25 percent. In many localities, 80 percent of consumers favour domestic garments and footwear, while over 58 percent are keen on fruits and vegetables. In more than 9,000 price stabilisation points, nearly 90 percent of goods are domestically made. … [Read more...]

Domestic businesses struggling on home turf

(VOV) - The successful operation of multinational corporations in Vietnam's supply chain has caused difficulties for domestic businesses to build their own trademarks. Vietnam High Quality Goods Enterprise Association President Vu Kim Hanh says many businesses are finding it difficult to promote their goods on the local market. Every month, the association organizes two rural tours for 50 businesses including Vinamilk and Kim Hang Aluminium & S. Steel Corporation to expand their distribution networks and promote their trademarks. In recent times, the rural demand for consumer goods has declined since farmers in some provinces are unable to sell their products. Another reason is that there is a fierce competition between multinational companies who wish to corner the consumer market by offering reduced price goods. Hanh suggest domestic businesses should work with supermarket managers to gain a leg to stand on home turf. It seems ASEAN's international integration and trade … [Read more...]

Seminar to boost Vietnamese garment and textile exports to Europe

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A seminar, "Solutions to boost Vietnamese garment and textile export to France and Europe", will be held on March 8th at the Park Hyatt Hotel, 2 Lam Son Square, District 1, HCMC, by the Vietnam High-Quality Goods Enterprises' Association, in association with Casino Corporation. The seminar is to discuss and exchange information about garment and textile industry in Europe and France. Also, the seminar will assist enterprises in catching up with garment and textile consumption trends in French and European markets. This seminar will open a new opportunity for the Vietnamese garment and textile industry to increase its export volume. Various speakers will attend the seminar, including Jo Bueters, Casino Corporation's consultant for technology and non-food strategy of, Alice Baey, Casino Corporation's Director for procurement since 2009, Guillaume Crouzet, Executive Director of the French Chamber for Commerce and Industry in Vietnam (CCIFV). Source: DDDN Translated by Nguyen Thao … [Read more...]

Rural Retail Market Likely to Thrive in 2011

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Retail markets in major provinces and cities like Hanoi, Ho Chi Minh City, Hai Phong and Da Nang will reach the saturation point in 2010, according to economic experts. At that time, foreign retailers will find out niches in rural markets where 75 percent of the Vietnamese population are living. New markets stir up According to statistics, Vietnam has more than 9,000 markets and nearly 50,000, stores where sold 90 percent of total goods consumed. Experts anticipated that the demand in rural areas would triple that in urban areas. Although domestic retailers have many advantages, they hardly find an effective way to penetrate potential rural markets. Mr Vu Kim Hanh, Director of the Vietnam High Quality Goods Enterprise Association, said, the current retailing network of Vietnam can meet only 47 percent of rural market where more than 75 percent of the Vietnamese population are living. However, domestic retailers seem to disregard this potential market. According to rural people, only … [Read more...]

Enterprises in difficulty despite intervention

Many enterprises, especially those large in scale, did not benefit much from the policies.—Photo vietq

HA NOI (Biz Hub)— High stocks of goods and non-performing bad debts remained the main concerns of enterprises, a conference was told here on Tuesday. The gathering was also told Government support policies were not as effective as expected. Experts said policies such as the bad-debt resolution project or the property market support package, were inconsistent, complicated and slow to reach the targeted subjects. Nguyen Minh Phung, deputy director of the Ministry of Finance's Tax Policy Department, said tax incentives, such as tax exemption and deferrals, did not satisfy all enterprises. Many enterprises, especially those large in scale, did not benefit much from the policies. According to Hoang Van Quyet, director of the Viet Nam Financial Investment and Construction Joint Stock Company, administrative procedures should be simplified to facilitate enterprises' operation. Experts at the conference urged Viet Nam to enhance restructuring by focusing on the agricultural sector, … [Read more...]

Sovereignty flagpole to be erected on Mat Island off central Vietnam

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The construction of a 22.6 meter tall flagpole that will serve as a marker of Vietnam’s marine sovereignty kicked off on Sunday on the outpost island of Mat, off the north-central province of Nghe An. >> Flagpole of sovereignty built on island off Quang Ngai The groundbreaking ceremony was held at Cua Hoi Port in Cua Lo Town of the province by the Ho Chi Minh Communist Youth Union’s Central Committee (HCYUCC) and the Civil Engineering Construction Corporation No. 4 (Cienco 4) yesterday morning. The flagpole will be located on an area of 30 square meters, with its main side carrying the pole’s coordinates and looking toward the sea. The pole, to be made of granite, is designed to be hung with a national flag measuring 4mx6m. The flagpole is estimated to cost about VND1.25 billion (US$58,560), of which VND1 billion ($46,850) will come from Cienco 4, while the remainder is made up of contributions by members of Nghe An Province’s Ho Chi Minh … [Read more...]

Construction of national sovereignty flag tower kicked off on Mat Island

Minister of Transport Dinh La Thang presenting gifts to construction units

PANO – The Central Committee of the Ho Chi Minh Communist Youth Union and the Civil Engineering Construction Corporation No. 4 (Cienco 4) on the morning of February 1st started the construction of the flag tower of national sovereignty on Mat (eye) Island (Nghe An province). The ground-breaking ceremony was attended by Minister of Transport Dinh La Thang, the First Secretary of the Central Committee of Ho Chi Minh Communist Youth Union Nguyen Dac Vinh and others. The flag tower on Mat Island is the first, out of the five flag towers to be built on outpost islands namely Mat Island (Nghe An province), Son Duong Island (Ha Tinh province), Hon Me Island (Thanh Hoa province), Cu Lao Cham Island (Quang Nam province), and Son Cha Island (Thua Thien-Hue province). The construction project is conducted under the cooperation of Cienco 4 and the Central Committee of the Ho Chi Minh Communist Youth Union. Facing the sea, the national flag tower on Mat Island is built on the area of 30m2 … [Read more...]

Flagpole built on outpost island of Nghe An province

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Flagpole built at Cu Lao Xanh in central Binh Dinh province (Photo: VNA) The outpost island of Mat off the coast of central Nghe An province will be home to a 22.6m flagpole serving as the country’s marine sovereignty marker as the construction of this facility was started on February 1. The pole will have the main side carrying the pole’s coordinates and looking towards the sea. It will be hung with the national flag measuring 4x6m. The construction costs 1.25 billion VND (over 59,500 USD) and is carried out by the Ho Chi Minh Communist Youth Union Central Committee (HCYUCC) and the Civil Engineering Construction Corporation No.4. It is scheduled to be completed on the occasion of the 84th anniversary of the establishment of the Youth Union in March. Mat Island is 24km off the mainland and has an area of 2.2 square kilometres. It holds a great importance in economic development, defence and security of Nghe An as well as Vietnam’s northern central region. … [Read more...]

Nghe An: National flagpole unveiled on Mat Island

Minister of Transport Dinh La Thang (second in black from left) presents gifts to units involved in construction of the facility. (Image credit: qdnd.vn)

NDO – The Ho Chi Minh Communist Youth Union Central Committee and Civil Engineering Construction Corporation No. 4 (Cienco 4) started construction of a national flagpole on Mat (Eye) Island in central Nghe An province on February 1. The construction is the first under a co-operation programme between the Youth Union and Cienco 4 to build flagpoles at five national outposts, including Mat Island in Nghe An, Son Duong Island in Ha Tinh, Hon Me Island in Thanh Hoa, Cham Island in Quang Nam, and Son Cha Island in Thua Thien – Hue. The 22.66 metre tall pole is built on a base of 30 square metres with a flag measuring 4x6 metres. The front of the flagpole – facing the sea – displays its co-ordinates, indicating Vietnam’s sacred national sovereignty landmark. The project is worth VND1.25 billion, of which VND1 billion was granted by Cienco 4, and the remaining was contributed by Youth Union members in Nghe An province. Construction of the flagpole is … [Read more...]

Tet bonuses range from two month’s wage to nothing

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Annual bonuses for Tet this year rage from up to two-month's salary to nothing at some large state-owned groups in Vietnam. Petrolimex employees may not have Tet bonus due to losses An official from Civil Engineering Construction Corporation No.4 JSC (Cienco 4), one of the biggest companies in the transporation industry, said they have yet to determine this year’s Tet bonus, but it intends to leave the bonus unchanged from 2014 at the equivalent to two-month's salary. "In 2014, Cienco 4’s employees’ monthly incomes averaged more than VND10m. This means that employees may receive a Tet bonus of more than VND20m each," the official said. Vietnam National Oil and Gas Group (PetroVietnam)’s deputy general director, Le Minh Hong, said the group’s Tet bonus for this year is expected at about 1.5-month's salary, averaging about VND22m per employee. Doan Duy Hoach, deputy general director of Vietnam Railway Corporation (VRC), said the group would direct part … [Read more...]

2nd station of Vietnam’s first metro line breaks ground

>> Vietnam metropolis begins building 4-floor underground section of 1st metro line station

A Japanese-Vietnamese contractor consortium on Tuesday started the construction of the Rach Chiec station of the first metro line of Vietnam in Ho Chi Minh City, the local Urban Railway Management Board said. The station is the second that has broken ground out of the 14 terminals of the Ben Thanh-Suoi Tien metro line, the first of its kind in the country that is under construction by the contractor consortium comprised of Japan’s Sumitomo and Vietnam’s Civil Engineering Construction Corporation No. 6 (Cienco 6). The Rach Chiec terminal is to be built above ground on the Hanoi highway in District 2, while the first station, the Municipal Theater station, is being built underground in District 1. The 3-storey second station is designed to be 137 meters long, 23 meters wide and 20 meters high. Upon completion, the facility can serve up to 8,300 passengers of the metro line per hour. The line is 19.7 km long, running from District 1 through Binh Thanh District, … [Read more...]