Businesses struggle to earn money in year-end sale season

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Businesses have geared up to boost sales in the year-end sales seasons. They have also changed the product structure to satisfy the taste of customers. Business results bad Dang Quoc Hung, Chair of Kim Boi Fine Arts and Handicrafts Company, spent the whole morning visiting Vifa Home, a wooden furniture and interior decoration trade fair held in HCM City. A trade fair was also held one year ago, where all the booths of the exhibition center was fully occupied. Meanwhile, a lot of booths remained idle at this year's trade fair, which lessened the enthusiasm of consumers of distributors. Tens of enterprises, which always participated in previous years' trade fairs, refused to attend this year's event. Hung also did not have a booth at Vifa Home, though he is the chair of three enterprises in Tra Vinh, Ben Tre and HCM City. The revenue of all the three companies decreased sharply by 50 percent in the first nine months of the year in comparison with the same period of 2010. Hung … [Read more...]

Jan-Jun electricity output, consumption up strongly

The Saigon Times Daily EVN reported at a meeting of the Ministry of Industry and Trade in Hanoi on Wednesday that the power sector generated 78.74 billion kWh in the first six months of this year, rising by 12.35% against the January-June period of 2014. Nguyen Tai Anh, deputy general director of EVN, was quoted by VietnamPlus as saying at the meeting that household electricity consumption soared in May and June compared to the same period of last year due to hot weather. The highest daily electricity consumption in May-June was more than 531 million kWh, up over 13% against the peak electricity consumption day of the same period of last year. To meet rising demand, EVN commissioned five power generators with a combined electricity capacity of 2,654 MW last month. This helped reduce the number of power cut hours from January to June by 38% year-on-year. "This (less power cuts) is one of the targets EVN is striving to achieve to better serve customers," Anh said. EVN … [Read more...]

VPBank and M.I.K Corporation join hands

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M.I.K Corporation, a leading professional real estate developer in Vietnam, has recently announced that Vietnam Prosperity Bank (VPBank) will act as a guarantor for its projects, following the Law on Real Estate Business coming into effect on July 1. According to the revised law, property developers, before selling or leasing unfinished or future property, must obtain guarantees from eligible commercial banks as assurances of their financial obligations to buyers. Accordingly, in case property developers fail to follow through their commitments and hand over apartments to buyers, banks would be responsible for refunding the buyers, in line with the provisions of the signed contracts. The regulation is expected to enhance the responsibility and obligation of developers, improve liquidity in the real estate market, as well as protect the rights of purchasers. Since the regulation has been introduced, M.I.K Corporation has speeded up discussions with its bank partners. With its high … [Read more...]

Strong capital flow to property sector raises concerns

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VietNamNet Bridge - The State Bank of Vietnam reports that loans disbursed to the real estate sector have soared recently. Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong, at a meeting held by the bank recently, said that real estate credit in the first six months of 2015 had increased by 10.89 percent compared to the same period last year. Loans for real estate accounted for 8.3 percent of total outstanding loans, up by 7.9 percent compared with the same period last year. The capital had been provided mostly to fund building of houses for sale and lease. The deputy director of the State Bank’s HCM City Branch, Nguyen Hoang Minh, has confirmed that real estate credit had soared. In 2010, the real estate sector was listed as a ‘non-production sector’ to which banks were discouraged to lend. However, in April 2012, the real estate sector was lifted from the ’non-production sector’. Since then, lending to the sector has escalated. Minh … [Read more...]

Electricity Group has new CEO

EVN General Director Dang Hoang An.

VietNamNet Bridge – The Minister of Industry and Trade appointed Mr. Dang Hoang An, Deputy General Director of the Electricity of Vietnam Group (EVN), as EVN General Director as of July 1, replacing Mr. Pham Le Thanh who retired. An, born in 1965 in Bac Giang province, was the Deputy Director of the National Centre for Electrical Moderation, Deputy Director of the Power Transmission I Company and Head of the Planning Department of EVN before being appointed as EVN Deputy General Director. Thanh officially retired from July 1. Thanh had nine years as the General Director of EVN. During this time Thanh also held the chairmanship twice in 2012 and early 2015. In March, a Deputy General Director of EVN, Mr. Duong Quang Thanh, was appointed as EVN. Minh Son … [Read more...]

Vinaconex appoints new chairman

Newly-appointed Chairman of Vinaconex Hoang Nguyen Hoc

HA NOI (Biz Hub) — The Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) has appointed a new chairman, according to Hanoi Stock Exchange. Deputy General Director of the State Capital Investment Company and Chairman of DHG Pharmaceutical Joint Stock Company Hoang Nguyen Hoc will be taking over as chairman from July 1. Hoc will be replacing Nguyen Thanh Phuong who is retiring. Hoc became a member of the Vinaconex Executive Board since June 2008. He was appointed as the deputy general director and executive board member of SCIC in the same year. He has kept the position of DHG Pharmaceutical JSC since April 2014. The Vinaconex Executive Board has also appointed its Deputy General Director Do Trong Quynh to the board. — VNS … [Read more...]

Luring more tourists from UK, France, Germany, Spain, Italy and Belarus to Viet Nam

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(TITC) – To take advantage of Vietnamese Government’s visa waiver policy for citizens of the United Kingdom, France, Germany, Spain and Italy (in one year) and the Republic of Belarus (in 5 years) from July 1, 2015, Viet Nam National Administration of Tourism held a meeting on June 25, 2015 to discuss solutions to lure more tourists from these countries to Viet Nam. In attendance were General Director Nguyen Van Tuan, Deputy General Director Nguyen Quoc Hung, Deputy General Director Ha Van Sieu, Vice Chairman of Viet Nam Tourism Association Vu The Binh, representatives of Department of International Cooperation (under the Ministry of Culture, Sports and Tourism), VNAT’s departments and units, tourism enterprises and Vietnam Airlines. At the meeting, the participants discussed solutions to attract more tourists from 6 markets and focused on: Working with the Embassies of these countries in Viet Nam; Informing about Vietnamese Government’s visa waiver policy … [Read more...]

VNA, Xinhua strengthen cooperation

Deputy General Director of the Vietnam News Agency (VNA) Nguyen Hoai Duong and Deputy Editor-in-chief of China’s Xinhua News Agency Peng Shujie held talks in Hanoi on June 29 to discuss measures to strengthen cooperation between the two sides. They focused their discussions on activities to promoting the two news agencies’ future connection, including experience sharing in development model, exchange of high-level delegations and collaboration of between the two sides’ reporters and correspondents. They proposed signing a new comprehensive cooperation agreement between the two State news agencies in 2016. After the talks, Deputy Editor-in-chief Peng and his entourage visited a number of units and editorial boards of the VNA. Also the same day, Deputy Head of the Party Central Committee’s Commission for Popularisation and Education Mai Van Ninh received Deputy Editor-in-chief Peng and his entourage. The host spoke highly of cooperation between the VNA … [Read more...]

Kinh Do renamed KIDO after Mondelez deal

A view of the general meeting of KDC last Friday - PHOTO: QUOC HUNG

Quoc Hung At an annual general meeting of KDC last Friday, shareholders agreed on the company name change but keeping the stock code intact, KDC. According to Tran Quoc Viet, deputy general director of KDC, the deal to sell 80% of its confectionery business to Mondelez International is complete and is waiting for regulatory approval from authorities. A reliable source from Kinh Do said the deal might conclude the following month. KDC has switched to making products like instant noodles, cooking oils and condiments bearing the brand Dai Gia Dinh. KDC will pay cash dividend of 200% to shareholders after the deal. According to deputy general director of KDC Nguyen Xuan Lan, after all procedures are done, the firm would transfer the 200% dividend to investors. KDC leaders said the money earned from the deal had been included in its 2015 profit. This is also why the firm has set a revenue target of only VND3 trillion for this year, down 40% against 2014, but its pre-tax … [Read more...]

Seafood sector aims to produce 6.4 mln tonnes this year

Vietnam’s seafood farming and fishing industry is expecting to produce 6.4 million tonnes in 2015, according to the Directorate of Fisheries under the Ministry of Agriculture and Rural Development. A conference on seafood production in the first six month was held on June 29 in Hanoi by the directorate, revealing that in the first half of the year, seafood production reached 3 million tonnes, up 3.6 percent against the same period last year. Of the 3 million tonnes, the farming sector contributed 1.8 million and the remaining was generated through fishing. Brackish-water shrimps posted a 21 percent growth with 200,000 tonnes. In order to reach the expectations, the sector will need to face competition from other countries, technical barriers, and disease risks, according to the Directorate. Nguyen Van Trung, Head of the Department of Fisheries Capture and Resources Protection under the Directorate, said the implementation of Decree No 67/2014/ND-CP on seafood development … [Read more...]

Trade-off: energy export or security?

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The Vietnamese government has authorised state-run Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) and Dong Bac Corporation to export two million tonnes of coal in 2015, following a proposal by the Ministry of Industry and Trade. According to the ministry’s (MoIT) estimate, Vietnam's total commercial coal output is likely to reach 40.03 million tonnes in 2015, 43.77 million tonnes in 2016, 50.38 million tonnes by 2020, and 57.49 million tonnes by 2030. 60-95 per cent of this volume is qualified for power generation. On the basis of the ministry’s estimations on coal consumption and output tendencies, Vietnam will become a net importer as soon as in 2017. The disparity is expected to widen over time, with net imports almost quintupling in size by 2020, reaching an estimated 26.5 million tonnes. Based on statistical data currently available, Vietnam will need to import roughly 52 per cent of its annual domestic coal output to cover the … [Read more...]

Interest on bank deposits starts to rise

Compiled by Le Hung Vong After a long time banks have increased deposit interest rates, which have gone up by 0.1-0.5 per cent. Phuong Nam Bank pays interest of 6.5 per cent for short-term deposits and 7.1 per cent for deposits of over one year. OceanBank, which has become State-owned, offers 7 per cent for deposits of less than 12 months. Giant public lender Agribank has hiked the interest rate by half a percentage point (from 6.3 per cent to 6.8 per cent) for 24-month deposits while another State-owned bank, BIDV, has increased rates by 0.2-0.3 per cent. Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam's HCM City office, said short-term deposits account for over 70 per cent of deposits while outstanding loans make up 55 per cent of total deposits. To ensure liquidity, banks have had to increase rates on long-term deposits to narrow the gap between them and loans, especially since, in the past few months, demand for medium- and long-term credit has shot up in HCM … [Read more...]

Credit growth improves in H1

Tran Thu and Dinh Duy Credit growth was around 3.69% at the end of April and 4.26% by end-May but surged by 1.5 percentage points to 5.78% by June 15. Banks continued to prioritize lending to the agricultural and rural sector as total outstanding loans in this sector were estimated to edge up 7.71% against late 2014. VPBank Securities Co. (VPBS) said in a report that credit rose around 6.1% as of June 18 and roughly 3.5% year-on-year. Credit for the real estate sector had grown 10.9% as of May 31. The brokerage noted some banks such as HDBank, DongABank, Eximbank and PGBank had revised up their short-term deposit rates in Vietnam dong. The rate spikes came a few days after some larger lenders such as BIDV, Vietcombank and Agribank adjusted up their short-term deposit rates by 0.1-0.3 percentage point. This might have resulted from high credit growth, VPBS said. According to the National Financial Supervisory Commission, deposit rates were poised to inch up as the pickup of … [Read more...]

FrieslandCampina inaugurates sustainable dairy zone in Ha Nam

(VOV) - FrieslandCampina Vietnam (FCV) officially held an inauguration ceremony for a sustainable dairy zone in Moc Bac commune, Duy Tien district in the northern province of Ha Nam on June 24. It marks an important milestone in the cooperative project between Ha Nam provincial authorities and the Netherlands Government to develop Vietnam’s dairy sector in a sustainable manner. The new dairy zone is being developed as part of a larger public-private-partnership project initiated in the province. The project aims to establish specialised dairy zones for family farms that can contribute to food security while creating jobs and reducing milk imports. The project includes the development of three dairy zones in Vietnam. Each dairy zone will have at least 50 dairy farms producing about seven million kilograms of fresh milk a year, when operational. The project implementation is also expected to generate 345 jobs. As the main partner in the project, FCV will manage, control and … [Read more...]

Unitel launches 4G service in Laos

Unitel network, a joint venture between Viettel Global Joint Stock Company of Viettel and Lao Asia Telecom of Laos, will carry out 4G in four cities and provinces in Laos. VNA/VNS Photo Pham Kien

Star Telecom, a joint venture between Viettel Global Joint Stock Company of Viet Nam and Lao Asia Telecom of Laos, has officially launched its 4G service on its Unitel network. The launch took place on June 23 in Vientiane. At first, the firm will roll out the service in four major cities and provinces of Laos: Vientiane, Savannakhet, Luang Prabang and Champasak. The new service is said to provide customers with many facilities, such as watching videos on YouTube in high definition, watching TV online and downloading data at high speed. Speaking at the launch ceremony, Star Telecom Deputy General Director Kongphet Nhongvongsitthi said the telecom service had changed significantly, using various new technologies, and the launch of 4G service was intended to catch up with the latest global trends. He said Unitel was the first and only mobile operator in Laos offering six tariff packages for 4G service with prices equivalent to 3G service. At the moment, Unitel tops the Laos … [Read more...]

Six railway officials on bribery charges

HA NOI (VNS) — The Supreme People's Procuracy of Viet Nam has started prosecution procedures against six officials of Viet Nam Railways for "abusing power while on duty". The officials reportedly received millions of dollars from a Tokyo-based railway consulting firm in 2009. The defendants include Tran Quoc Dong, 51, former deputy general director of the corporation and director of the unit; Pham Hai Bang, 46, former deputy director of the unit; Pham Quang Duy, 40, former deputy director of the unit; Nguyen Nam Thai, 38, head of project 3 No. 3 under the unit; and Tran Van Luc, 56, former director of the unit; as well as Nguyen Van Hieu, 52, former director of the unit. Newspaper allegations The transport ministry finished its investigation into allegations published by a Japanese newspaper in March 2014, saying that a Tokyo-based railway consulting firm had admitted to paying JPY80 million (about US$780,000) to win a $41 million railway contract in Viet Nam funded by the … [Read more...]

Vietnam embarks on record deal spree on looming foreign threat

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A worker checks for mistakes on beer along production line of a factory of Saigon Beer Corporation (Sabeco) in Hanoi on May 26, 2015. While the trade agreements will benefit Vietnamese apparel manufacturers and shrimp exporters, they could hurt domestic auto assemblers and food and beverage producers, experts say. Photo: Reuters Vietnam is embarking on an unprecedented dealmaking spree as the economy prepares to open up to greater foreign competition. Acquisitions involving Vietnamese companies may reach as much as a record $4.5 billion this year, surpassing $4.2 billion in 2012, Christopher Kummer, president of the Institute of Mergers, Acquisitions and Alliances, said by e-mail. There have already been $1.9 billion of deals so far this year, the most in three years, data from the Vienna-based think tank show. Companies are seeking to bulk up as Vietnam is expected by PricewaterhouseCoopers LLP to be one of the world’s fastest- expanding economies through 2050. Vietnam … [Read more...]

Jan-Jun fuel import grows 23%

Minh Tam Interim statistics of the General Department of Customs showed local enterprises had imported over 420 tons of fuels worth US$242 million in the first half of June, up nearly 10% in volume but down 35% in value over the same period last year. In the year to June 15, local fuel enterprises had imported over 4.7 million tons worth nearly US$2.7 billion, rising by 23% in volume but falling 29.3% in value year-on-year. Diesel, gasoline and jet fuel registered stronger import volume increases. Prices of all fuel products fell sharply thanks to the crude oil price drop on the world market. Each ton of fuel products averaged US$573, which was much lower than the US$943 in the same period last year. Speaking to the Daily, Tran Ngoc Nam, deputy general director of Vietnam National Petroleum Group (Petrolimex), credited strong fuel consumption to higher imports and this suggested that the macro economic situation had improved. Petrolimex is the leading fuel trader in Vietnam … [Read more...]

France backs Vietnam in controlling geographical indications

Participants at the seminar

PANO – A two-day regional seminar on the control of geographical indications (GIs), titled "Efficient Control for successful GIs," began in Hanoi on June 23rd. The seminar was co-chaired by Deputy General Director of the Vietnamese National Office for Intellectual Property (NOIP), Mr. Tran Huu Nam; UN FAO Senior Food Safety and Nutrition, Ms. Sashi Sareen; FAO Regional Office for Asia and the Pacific, Mr. Stéphane Passeri; Counselor for Agriculture of French Embassy in Singapore, Mr. Sébastien Bouvatier; and Director of AFD Vietnam, Mr. Rémi Genevey. It also drew the participation of French Inter-professional Committee of Champagne - C.I.V.C., Mr. Charles Goemaere, as well as local and international officials and businesses. During the two days, delegates focused their discussion on how to efficiently control GIs of regional agricultural products, and how to effectively implement the project on the promotion of rural development of GIs at the regional … [Read more...]

Decree 42 stipulates rules for derivative securities

Nguyen Kim Trang, Legal Assistant – Indochine Counsel On May 5, 2015, the government enacted decree 42/2015/ND-CP on derivative securities and the derivative securities market ("Decree 42"). The decree is applicable to both Vietnamese and foreign organisations and individuals investing in or involved in derivative securities ("derivatives") and conducting or involved in the activities on the derivative securities market ("derivatives market") in Viet Nam. According to decree 42, derivatives are securities prescribed in the amended Law on Securities, which means evidence from an issuing organisation (i.e., organisation conducting a securities offer) certifying the lawful rights and interests of an owner with respect to an asset or capital portion. It may take the form of certificates, book entries or electronic data. Derivatives include future contract, purchase/sale options, forward contract and other derivatives, in accordance with the guidelines of the finance … [Read more...]