BUSINESS IN BRIEF 21/2

Restructuring of State-run firms faces challenges Restructuring of a number of State-owned enterprises has been delayed due to problems of redundant workers, collecting past-due debts and writing down losses, said deputy head of the Government Office and vice chairman of the Steering Committee on Business Renovation and Development, Pham Viet Muon. Muon told a meeting held here Wednesday by the Government Office and the World Bank that the process of equitising State-owned enterprises (SOEs) has slowed in the past five years. He said the Government has requested economic groups to submit restructuring plans by March of this year which would be focused on key lines business and plan for divestment from non-core business fields such as banking, real estate development, insurance and securities before 2015. Equitisation of companies was expected to be completed before 2020. Once operations were totally focused on key lines of business, with improved corporate governance, … [Read more...]

Vietnam – Angola Business Forum 2012 Opens in Hanoi

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The Vietnam-Angola Business Forum, themed "New Partners for Development" took place at Media Hotel, Hanoi on February 16. The event was hosted by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Angolan Embassy in Vietnam. Vietnamese Vice President Nguyen Thi Doan and Angolan Vice President Fernando Dias Dos Santos chaired and delivered speeches to the meeting. Vice President Fernando Dias Dos Santos said Angola would do its best to promote the effective bilateral cooperation. Angola will create the most favourable conditions for Vietnamese companies to do business and for Vietnamese people to live and work. Meanwhile, Vice President Nguyen Thi Doan stressed that both Vietnam and Angola are open markets with great potential, providing good opportunities for businesses from both countries to develop their markets in the coming years. Vietnam will do its utmost to further promote political and economic relations with Angola. The forum witnessed an … [Read more...]

Vietnam-Angola Business Forum opens in Hanoi

Vietnam and Angola are promising open markets and the Vietnam-Angola Business Forum is an opportunity for the two countries' businesses to develop their markets in coming years, said Vice State President Nguyen Thi Doan. Addressing the forum, themed "New Partners for Development" that took place in Hanoi on Feb. 16, Vice President Doan said Vietnam will exert its utmost to beef up the two countries' economic and political relations, facilitate cooperation between the two countries' businesses and act as an efficient bridge for the two economies to bring their strengths into play. Angolan Vice President Fernando Dias Dos Santos said Angola defines agriculture as its key goal, with cereal and breeding and processing industries. Angola is creating an attractive investment environment for private and public investors, said the Angolan Vice President, expressing his belief that through the establishment of partnerships, cooperation between Vietnamese and Angolan businesses will see new … [Read more...]

Vietnam-Angola Business Forum opens

Vietnam will do its utmost to further promote political and economic relations with Angola and create the best conditions for businesses from the two countries to cooperate with each other. Vice State President Nguyen Thi Doan made the commitment at the Vietnam-Angola Business Forum held in Hanoi on February 16, with the aim of further fostering trade and investment cooperation between the two countries. Ms Doan emphasized that both Vietnam and Angola are open markets with great potential, providing good opportunities for businesses from both countries to develop their markets in the coming years. Angolan Vice President Fernando Dias dos Santos said his country considers agriculture a key sector, producing cereals and livestock for the processing industry. Its economy is gradually rebounding, so the country is creating an attractive environment for public and private investments, as well as devising measures and legal tools for strong economic growth. Mr dos Santos … [Read more...]

Japan needs more Vietnamese workers

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Japan is keen to receive around 10,000 Vietnamese workers every year, said the Japanese International Training Cooperation Organisation (JITCO). After the disastrous earthquake and tsunami in 2011 ravaged the country, Japan has faced a shortage of workers, especially in the agriculture and seafood processing sectors. The numbers of workers in both sectors have fallen dramatically due to the repatriation of a large number of Filipino and Chinese workers, the JITCO has said. Vietnam's workers are highly appropriate for working in Japan's agricultural and seafood-processing sectors and the JITCO wants Vietnamese recruitment agencies to increase the number of workers they send to Japan to work in these sectors this year. Nguyen Gia Liem, head of Vietnam's Labour Management Board, said the average salary for workers on Japanese farms or in seafood factories is now between 1,000-1,500 USD per month. Agencies in Vietnam say that the work requirements demanded by Japan are relatively … [Read more...]

Japan offers jobs for more Vietnamese trainees

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Representatives of the Japanese International Training Cooperation Organisation met with various Vietnamese companies on Feb.16 to offer more opportunities for Vietnamese trainees to work in Japan. The Japanese Organisation will be offering Vietnamese trainees signed contracts and the opportunity to work overtime during the first year. Japan has amended its regulations on management of immigrants and expat workers that make it far easier for Vietnamese trainees to work in Japan. The new regulations also allow trainees to sign labour contracts with Japanese enterprises immediately, instead of after a year's training. Trainees will now be able to migrate and work in Japan soon after finishing their training course and enjoy the same rights as domestic workers. The regulations are also tougher on foreign recruiting agencies and Japanese enterprises in employing foreign trainees, said the Japanese representative. The change in Japan's policy for foreign trainees will help … [Read more...]

Japan to Receive More Vietnam Trainees: JITCO

Japan will give more opportunities for Vietnamese trainees in the years to come, said an official of the Japanese International Training Cooperation Organisation (JITCO) at a seminar in Hanoi Jan 19

The event held by the Vietnamese Ministry of Labor, War Invalids and Social Affairs and JITCO was a good chance for local businesses and Japanese partners to boost ties. Japan has announced an amended law on the management of immigrated and migrated workers. The law is expected to facilitate the flow of Vietnamese trainees to Japan in the future, the official added. The East Asia country started to receive Vietnamese trainees in 1992. The Southeast Asia nation has sent 35,000 trainees to the sun-rising country over the past 18 years, accounting for nearly 5% of the total foreign trainees in Japan. At present, more than 80 Vietnamese enterprises are allowed to send their trainees to Japan. (People Police) … [Read more...]

More opportunities for Vietnamese trainees to work in Japan

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New regulations on training included in Japan's amended immigration law have made it easier for Vietnamese trainees to work in the country. At a seminar in Hanoi on October 6, Shotaro Tochigi, President of the Japanese International Training Cooperation Organisation (JITCO), said that the newly issued law has shortened the required training duration from one year to 1-2 months. The law also allows trainees to immediately sign labour contracts with Japanese enterprises instead of after one year of training. Under the law, trainees will be able to emigrate and work under Japan's labour laws after finishing their training courses and will have the same rights and responsibilities as domestic workers. The law also includes tougher regulations and more responsibilities for foreign recruiting agencies and Japanese enterprises that employ foreign trainees, said Tochigi. The JITCO president added that more than 5,000 Vietnamese trainees began working in Japan last year and six of them … [Read more...]

More chances for Vietnamese trainees to work in Japan

New regulations on training included in Japan's amended immigration law have made it easier for Vietnamese trainees to work in the country. At a seminar in Hanoi on October 6, Shotaro Tochigi, President of the Japanese International Training Cooperation Organisation (JITCO), said that the newly issued law has shortened the required training duration from one year to 1-2 months. The law also allows trainees to immediately sign labour contracts with Japanese enterprises instead of after one year of training. … [Read more...]

Major transport projects to receive tough scrutiny

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At least 15 major transport projects will be carefully audited for the quality of their management and construction. … [Read more...]

US$400 million to build electricity plant

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A plasma converted gas plant to produce electricity, at a total cost of US$400 million, will be built in HCM City by Australian Trisun International Development Company. Gavin Holland, Technology Director of the Trisun International Development, said that the company will co-ordinate with foreign partners to build a production line in Phase 1, with a design capacity of treating 2,000 tonnes of garbage per day to generate 1.6 million kWh of power, of which 45 percent will be used by the plant and 55 percent will be added to the national grid. Tu Ngoc An, Chairman of the Management Board of Kien Giang Composite KGC Company, who represents Trisun in Vietnam, said that the plant is expected to create jobs for about 200 workers. … [Read more...]

Waste-to-energy factory to be built in HCMC

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A plasma converted gas factory to produce electricity, at a total cost of US$400 million, will be built in HCMC by Australian Trisun International Development Company, according to a conference held on February 15th by the Committee for Overseas Vietnamese in HCMC. Gavin Holland, the Technology Director of Trisun International Development, said that US$400 million, from the Company's budget and its foreign partners, will be used to build a production line in Phase 1, with capacity of treating 2,000 tons of garbage per day to generate 1.6 million kWh of power of per day, of which 45 percent will be used to operate the factory and 55 percent will contribute to the national grid. Tu Ngoc An, Chairman of the Board of Kien Giang Composite KGC Company, a representative of Trisun in Vietnam, said that this factory will be put into operation in 36 months, creating jobs for about 200 workers. It is expected that it will take about 10 years to recover the costs as the factory also produces … [Read more...]

Vietnam-India two-way trade increases rapidly

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Two-way trade between Vietnam and India has increased almost 20-fold during the past decade, the Indian Consul General has said. For illustration purposes only Indian Consul General in Ho Chi Minh City, Abhay Thakur reported this news at a get-together to celebrate the 62nd anniversary of the Republic of India, in Ho Chi Minh City on Feb. 16. Bilateral trade rose from US$200 million in 2000 to over $1.2 billion in 2006, $2.7 billion in 2010 and $3.9 billion in 2011. Abhay Thakur affirmed that Vietnam has always been a special and sincere friend of India, in both bilateral ties and at regional forums, adding that Vietnam remains in a strategic position in the foreign priorities under the "Look East" policy of India. He said India is willing to further strengthen cooperative contents with Vietnam based on the spirit of the "Vietnam-India Strategic Cooperation" that was signed by the two countries in 2007, especially in the fields of business, science and technology and culture. The … [Read more...]

Sensible choices will prime market

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Industry experts are predicting that 2014 will continue to see raised liquidity in the real estate market, particularly in the low and medium-cost housing segment. VIR talked with some industry players to hear their predictions for the new year, and which government policies could affect the industry's fortunes. Tran Nhu Trung Deputy director of Savills Hanoi The most promising aspect of the real estate market in 2013 was the quarter-on-quarter increases in liquidity. The number of transactions was less than 10 per cent, but still reflected an improvement. Offices for lease are always one of the other important segments often considered a measure of an economy's health. In 2013, new tenants appeared. This proves that the economy is showing signs of recovery. In 2014, the real estate market is still very much dependent on the recovery of the economy. Therefore I predict that there will be no real estate market boom, because the recovery of the economy is not predicted to show … [Read more...]

Few takers for foreign currency loans

by Compiled by Le Hung Vong Unlike in past years when there was great demand from companies for foreign exchange to pay for imports, this year most do not want to borrow money, making it hard for banks to find customers. Do Duy Thai, general director of Thep Viet Co., said normally steel producers increase imports of feedstock from early December to prepare for production in the next four months. But the lower consumption of steel products in 2013 had led to high inventory levels, and as a result the demand for US dollar loans had fallen sharply, he said. According to figures from the State Bank of Viet Nam's HCM City branch, as of December 25, foreign currency outstanding loans were worth VND160.74 trillion (US$7.6 billion), or 16.9 per cent of total bank loans. It was much lower than the 22 per cent in 2012 and 27.08 per cent in 2011. The SBV's Circular No 37 early last year on enterprises' foreign currency borrowing causes difficulties for exporters by requiring them to prove … [Read more...]

Realty firms pin hopes on better business in 2014

A completed high-end apartment project in An Phu Ward in HCMC's District 2 - Photo: Dinh Dung

Dinh Dung According to Le Chi Hieu, general director of Thu Duc Housing Development Corporation, or Thuduc House, housing prices have become much more stable in 2013 and transactions have increased steadily over the year's quarters, which is seen in not only low-cost home projects but also middle- and high-class segments. A recent market survey conducted by Savills Vietnam indicates that the total transactions in the market this year are much higher than that of 2012, leaping 45% year-on-year or some 5,700 condos. Besides, the number of apartments sold to the market in 2013 has also risen sharply compared to 2012, showing that project owners now have much stronger confidence than last year, said Truong An Duong, head of the market research unit of Savills Vietnam. Hieu of Thuduc House noticed that homebuyers now understand more about the elements of housing prices in the context that they are given more choices for home purchasing. The housing market will get more stable in … [Read more...]

BUSINESS IN BRIEF 26/8

Chu Lai economic zone looks to future Deputy Prime Minister Nguyen Xuan Phuc has urged central Quang Nam province work harder in its efforts to make Chu Lai a major economic zone and thus attract more national and international investment projects. Deputy PM Phuc made the remarks at a ceremony on August 17 to mark the 10th anniversary of the zone, which is situated in Nui Thanh district, Quang Nam . After a decade of operation, Chu Lai EZ has granted permission for 89 projects with a total registered investment of over 1.5 billion USD, including 21 bankrolled by foreign investors. So far, 62 of these have become operational, worth a total investment of 783 million USD. Developments in the zone have created jobs for nearly 50,000 direct and indirect workers in the locality. Comprising 24 communes and five industrial parks spread over 3,500 hectares, Chu Lai been chosen as one of five key economic zones to be prioritised in the 2013-2015 period. During the ceremony, the zone … [Read more...]

Domestic investors aggressive in realty M&A deals

Thuy Ngan In early 2013, Thu Duc Housing Development Corporation announced to transfer its entire stake worth VND80 billion in Hanoi City-based Dong Mai project. Hoang Quan Real Estate Company has also announced to acquire parts of Nam Hiep Thanh staff housing project in Phu My new urban area in Ba Ria-Vung Tau Province. Dat Xanh Group has also strongly participated in the M&A market, acquiring two apartment projects in HCMC earlier this year. According to a representative of Dat Xanh, many investors have offered projects to the enterprise, so it will continue to invest in condo projects whose investors face financial problems. In Hanoi City, Vietnam International Township Development Joint Stock Company (VIDC), investor of Parkcity project, has transferred its 100% stake to Malaysia's Perdana Parkcity Company. Earlier this month, FLC Group Joint Stock Company has taken over a 99% stake from Alaska Land Company, investor of Alaska Garden City. The project has total … [Read more...]

Land plots lure buyers with flexible payment scheme

Houses are under construction at Phuoc Long Spring Town in HCMC's District 9 - Photo: Dinh Dung

Dinh Dung Although the value of each land plot is not high, investors allow their customers to pay by installment to relieve their financial burden. Some project owners even accept a monthly installment of less than VND20 million. Kim Oanh Real Estate Company is offering land plots at its Green Life City in Dong Nai at VND320 million per unit with an 18-month payment schedule. The company in the past seven months has sold 100 land plots of this project. The 26-hectare Green Life City comprises 350 land plots for townhouses and villas covering 95-800 square meters each. In HCMC, land plots at Phuoc Long Spring Town developed by Thu Duc Housing Development Corporation in District 9 are currently on sale. In this first sale round, 38 land plots for townhouses covering 100-176 square meters each are offered at VND17.8-26 million per square meter, inclusive of tax. Land buyers have 18 months to complete payments. They are also provided discounts. Covering nearly four hectares … [Read more...]

BUSINESS IN BRIEF 20/5

Nutrition industry grows well: Nielsen Despite the continued slowdown in the economy, Vietnam's nutrition industry saw a robust growth in the last 12 months, and local consumers still rate health as a major concern, only behind the economy and job security, according to findings from Nielsen's Health and Nutrition Forum in HCMC on Thursday. According Nielsen, in spite of the softer economic numbers, certain categories that are perceived as healthy or nutritious by Vietnamese consumers are seeing double-digit growth. The total fast-moving consumer goods (FMCG) category, excluding beer, has seen 11% volume growth in the last 12 months ending in March 2013 compared with a year ago, and 15% sales growth. Growth in volume and sales of milk-based products also reached 19% and 22% compared with a year ago respectively. Vaughan Ryan, managing director of Nielsen Vietnam, said in a media release that the strong numbers indicate the growing importance of health-conscious consumption by … [Read more...]