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...]

BNP Paribas agrees upon US$60 million credit deal to Vietjet

(VOV) - BNP Paribas- a French bank and financial services company and the low-cost carrier Vietjet Air on April 15 signed a US$60 million credit agreement to financeVietjet’s purchase of five aircraft in the Airbus A320 family in 2015 and 2016. The agreement has acknowledged the effective cooperation between BNP Paribas and Vietjet after BNP Paribas served as a financial adviser to Vietjet in relation to the lease financing of the first seven aircrafts that VietJet have received in 2014 and early 2015. The agreement is part of a contract to lease and purchase 100 aircraft between Vietjet and Airbus that is seen as a contribution to boosting the strategic partnership between the airline and the international bank. VietJetAir's Deputy General Director Dinh Viet Phuong said BNP Paribas and Vietjet will fully tap their advantages for mutual development, adding that the move will help develop Vietjet fleet as well as customers get easier access to best aviation services. … [Read more...]

Social News 16/4

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Two female drug traffickers get death sentences Two women have been sentenced to death and another to life imprisonment for trafficking of 10 heroin bricks and more than 200 methamphetamine pills. On Monday, the Ha Noi People's Court tried 32-year-old Do Thi Thu Huyen of Lang Son Province, 35-year-old Bui Thi Thu Thuy of Nam Dinh Province and 28-year-old Hoang Thi Nhu Chi of Lang Son, for drug trafficking. According to prosecutors, at 2.30pm last Thursday, at the Yen Nghia gas station in Ha Dong District, Ha Noi, the police of Dan Phuong District in collaboration with the drug crime investigation department under the public security ministry searched the passengers of a coach going from Son La Province to Ha Noi. Passengers Bui Thi Thu Thuy and Hoang Thi Nhu Chi were found to be carrying drugs, including 10 bricks of heroin (each weighing about 0.3kg). At the investigative agency, Thuy allegedly said due to difficult economic conditions, she had agreed to transport the drug … [Read more...]

Vietnam’s sole refinery threatens shutdown over unfair tax policy

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The operator of Dung Quat Refinery, Vietnam's sole operational such facility, has said it is losing customers and threatened to shut operations thanks to an unfair tax policy, a complaint officials said is groundless. Located in the central province of Quang Ngai, the facility treats crude oil into fuel products and is now accounting for around 33 percent of the domestic fuel demand. But Binh Son Refining and Petrochemical JSC (BSR), which operates the US$3 billion facility, said many of its customers may switch to buying from other ASEAN countries, whose products are now cheaper thanks to a tax cut taking effect starting this year. Import duty for gasoline imported from the ten-country bloc was slashed to 20 percent from 35 percent, whereas the rate for diesel oil went from 30 percent to 5 percent, as part of the roadmap to the ASEAN Economic Community. The ASEAN members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and … [Read more...]

Quang Ngai-VSIP provides jobs for locals

The Vietnam Singapore Industrial Park (VSIP) under construction in central Quang Ngai province will provide a great deal of new jobs for local people. It has already attracted 10 investors with two of which going into operation in the second quarter of this year. Four factories, mainly in the light industry, operating in 2015, will generate 5,000 new jobs and the number is expected to double in 2017. According to Edmund Chong, Deputy General Director of the Quang Ngai VSIP, abundant workforce and a cheaper operation cost in comparison with Hanoi, HCM City and their neighbouring provinces, are drawing investors to the locality. The investors are encouraged to recruit local workers, he said. The industrial park has made 40 percent of 168 hectares ready for use in phase 1A and began construction work on 105 hectares in phase 1B.-VNA … [Read more...]

Hanoi promises stable electricity supply during summer

The Hanoi Electricity Corporation said it would implement technical measures to ensure a stable electricity supply for the capital city during the hot summer months. Nguyen Danh Duyen, Deputy General Director of the company, said the measures include hotline repair solutions, installing supervision devices, using independent transformer stations and enhancing relay systems at 110 kilovolt transformer stations. Duyen also called on the community to use electricity efficiently and avoid using electrical devices simultaneously. Hanoi will not cut power on hot summer days or make alternating cuts in some wards during this summer, Duyen added. The company also asked its units to draw up scenarios and master repair solutions.-VNA … [Read more...]

T1 Terminal to sell through nominations, not by auction

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VietNamNet Bridge - Sources say it is highly possible that the T1 Terminal of Noi Bai Airport will sell to nominated investors, not through auctions, though two investors have registered to buy it. The government has not approved any of the suggested plans on offering concessions to private investors. Observers believed that auctions would be organized by the Ministry of Transport (MOT) to find the buyer, because this would ensure a fair competition for the candidates. Vietnam Airlines, the national flag air carrier, and Vietjet Air, the first private Vietnamese airline, both have registered to receive the concession to operate T1 Terminal of the Noi Bai International Airport. Vietjet Air has twice sent documents to MOT to express its aspiration. Vietjet Air’s deputy general director Nguyen Duc Tam said at a recent workshop that the air carrier wishes to have the right to exploit the terminal, saying that Vietjet Air does not target the E Hall of the airport as suggested … [Read more...]

Vietnam bank exec points gun at taxi staff to demand parking spot

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The gun that a bank executive pointed to a taxi employee in Ho Chi Minh City on April 10, 2015 after she refused to give up her parking spot to him. Photo: Ma Phong An argument over a parking spot in Ho Chi Minh City Friday night almost turned deadly when a bank executive whipped out a gun and pointed it at the face of a taxi company employee before guards and police officers intervened. The police have seized a pistol with three bullets from Tran Thai Hoa, 47, deputy general director of the city-based Viet A bank. Huynh Thi Thanh Vy, 25, a passenger assistant of Mai Linh taxi company, who has the job of ushering fares to her company’s taxis at a building in District 7, said Hoa wanted to park his car at a spot allotted to her company. Hoa was driving backward toward the spot when she tapped the car to show him she was standing there and that the spot was taken, and that made him angry, she said. Hoa allegedly asked her a couple times if she wanted to live or die, before … [Read more...]

Exporter unconcerned about January-March seafood export fall

Employees of a seafood firm in the Mekong Delta region semi-process shrimp for export. Vietnam exports some US$1.27 billion worth of seafood in the first quarter of this year, down 23% year-on-year - PHOTO: TRUNG CHAN

Trung Chanh Chu Van An, deputy general director of Minh Phu Seafood Corporation, said the country’s seafood shipments in Q1 of last year went up beyond projections due to limited supply in India, Thailand and China. However, exports of these three Asian seafood exporters shot up in January-March this year. An told the Daily that his experience showed demand for seafood, particularly shrimp, in importing markets is usually weak in the first three months of year but grows strong in the following months. "In general, I think seafood exports would not be as tough as some exporters have bemoaned," An said. The Vietnam Association of Seafood Exporters and Producers (VASEP) estimated seafood exports in the January-March period at US$1.27 billion, dropping 23% compared to the same period last year. Despite the sharp fall, seafood revenue was US$121 million higher than in the same period of 2011 and US$9 million in Q1 of 2013. Seafood exports in the first quarter of 2014 … [Read more...]

Sao Mai Group Keeps Building Brand

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The global crisis has not ended and many companies are bearing risks of bankruptcy. However, with effective management and leadership, Sao Mai Group has devised a good strategy to overcome crisis and grow strongly; thus quickly becoming one of the leading business groups in Vietnam. The economy shows positive signs in the early months of 2015 but not all of them are stable. According to Mr Truong Vinh Thanh, Deputy General Director of Sao Mai Group, in 2014, the economy had both of dark and light colours. According to him, the brightest spot is the recovery of the U.S. economy. However, the economies of China and Japan expose signs of slow growth, and even the risk of repeated recession. Truong Vinh Thanh noted that compared with 2013, the economy of Vietnam in 2014 was much better. The year witnessed steady macroeconomic growth; low inflation rate that was kept at 2 percent; reduced interest rate; and recorded volume of commodity exports that reached VND150 billion. "This reflects … [Read more...]

Auditor delves into Petrolimex losses

The Viet Nam National Petroleum Group (Petrolimex) suffered a loss of nearly VND9.10 billion (US$433,000) last year. — Photo thanhniennews HA NOI (Biz Hub) — The Viet Nam National Petroleum Group (Petrolimex) suffered a loss of nearly VND9.10 billion (US$433,000) last year, an audited financial report posted on the company's website revealed. The result, concluded by auditor Deloitte Vietnam, was different from the VND4.8 billion ($228,000) profit Petrolimex had reported earlier for 2014. Petrolimex Deputy General Director Tran Ngoc Nam explained in an online statement that the difference was because the company had not established provisional funds for risks posed to inventory price reduction on December 31 last year. The Petrolimex directorate assessed that this move was suitable at the time, when the declining trend in global crude oil prices had slowed since December. The directorate also said that the company had accounted for the results in line with the way the … [Read more...]

Companies selling small number of shares unpopular with investors

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VietNamNet Bridge - Businesses with a large number of shares can be easily sold, but companies with smaller amount of shares cannot find buyers. One year ago, when the State announced that it would put 432 state-owned enterprises (SOEs) into equitization in 2014-2015, analysts warned that the plan could fail because investors would not have enough money to buy all the 432 businesses within two years. However, they were wrong. The problem was not the investors’ financial capability, but the way the State sells businesses. Nguyen Anh Trung, director of the Hai Phong Securities Company’s Hanoi branch, said many investors showed interest in buying Hai Phong Port’s shares. However, after realizing that the State intended to sell 5 percent of the chartered capital only, they gave up. "The investors want to acquire the proportion of shares large enough to allow them to join the board of directors," Trung said. "SOEs will still be unattractive to investors if the … [Read more...]

HoREA wants maximum budget condo area unchanged

Manh Tung Under the draft decree on social housing development and management already put forward for comment, the smallest unit for low-income earners is 25 square meters while the biggest is 90 square meters. However, the numbers of apartments of 25-30 square meters and 70-90 square meters are limited at 20% of the total number of apartments in a project. According to HoREA, the minimum area of budget apartments of 25 square meters is reasonable as it can meet the demand of families of four. But the maximum area of 90 square meters is not appropriate in the current situation. HoREA explained that the goal of developing budget apartments is to meet the basic housing demand of low-income earners in urban areas, not to satisfy the demand of big families. It will not be fair when a 90-square-meter apartment is used by one household while such an apartment is big enough for up to three families. Meanwhile, budget homes enjoy many incentives like land rent, value-added tax of 5%, … [Read more...]

Strict rule helps prevent monopoly at transferred airports – experts

Lan Nhi There has been concern that transferred airports will be dominated by certain airlines and investors if they are permitted to buy the operation rights to Terminal 1 (T1) at Noi Bai International Airport in Hanoi and Phu Quoc International Airport off mainland Kien Giang Province as planned by the Ministry of Transport. Deputy Minister of Transport Pham Quy Tieu told a seminar in Hanoi on Wednesday that the State will raise hefty funding from selling and transferring the operation rights to airports but there should be effective measures against monopoly and proper mechanisms to ensure healthy competition and efficiency of State management at these airports. The ministry is weighing plans to sell the operation rights to a number of airports to raise funds for other infrastructure airports from investors, said Lai Xuan Thanh, director general of the Civil Aviation Authority of Vietnam (CAAV) told the seminar on allowing private enterprises to operate a number of airports in … [Read more...]

Tougher competition for apparel sector ahead

Visitors take a look at a machine on display at the Saigon Tex 2015 on April 9 - PHOTO: TTXVN

Van Nam Speaking at the Vietnam Saigon Fabric & Garment Industry Expo (Saigon Tex) 2015 in HCMC on April 9, Hoang Ve Dung, deputy general director of Vietnam National Textile and Garment Group (Vinatex), said Vietnam will sign more bilateral and multilateral free trade agreements, thus offering multiple opportunities but at the same time exposing them to more challenges. In fact, apparel enterprises have seen competition intensifying in recent times. Some producers performed well in 2014 but have failed to win contracts this year while their employees have left for bigger firms. "Despite preparations since 2013, we’ve faced cutthroat competition since last year," Dung said. He noted that apparel exports have been swelling, from US$25 billion in 2014 to an estimated US$28 billion this year, but some companies have won less orders than expected over the past months, including foreign-invested enterprises. Dung suggested local companies manage to participate in the … [Read more...]

Textile tech on display at HCM City expo

Visitors at the 2015 Vietnam Saigon Fabric and Garment Accessories Expo which opened yesterday in HCM City. The expo offers local firms opportinues to obtain the latest technologies in the industry. — VNA/VNS Photo Hoang Hai HCM CITY (Biz Hub) — The 2015 Vietnam Saigon Fabric and Garment Accessories Expo (Saigon Tex) that opened yesterday offers local textile and garment firms an opportunity to get a close look at and obtain the latest technologies available globally. It has attracted 655 firms from 21 countries and regions such as UK, India, Taiwan, Germany, Hong Kong, Korea, Italy, France, Sweden, and Thailand, a big increase from last year. On their part, the exhibitors will have the chance to establish new contacts and explore business opportunities. A series of seminars will be held on the sidelines of the event on topics such as preparations to be made by textile and garment businesses for the Trans-Pacific Partnership (TPP); rules of origin for textile and … [Read more...]

Capital from Japan helps Vinatex complete supply chain

Workers sew shirts at a factory of the Garment 10 Corporation - Joint Stock Company under the Vietnam National Textile and Garment Group (Vinatex). The group has recently cooperated with Japanese companies to complete supply chain to boost its textile export revenue. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — VTJ JSC, a member of Vietnam National Textile and Garment Group (Vinatex), signed an agreement with Tom's Co., Ltd, of Japan to produce T-shirts at Dien Sanh Industrial Zone. Dau Tu (Investment)newspaper reported that the agreement, signed in early April, is a joint project to develop integrated processes, from weaving, dying and sewing to knitting. The cooperation shows the readiness of Vinatex to welcome opportunities offered by free trade agreements, which are expected to be signed in the near future. The project has a total investment of US$12 million and aims to construct and manage three factories. The first factory for weaving and dying has a capacity of 2,500 tonnes of knitting products per year. The second for sewing has a capacity of 10 million products per year, and the wastewater treatment plant may treat some 1,200 cubic meters of wastewater per day. Dang Vu Hung, deputy general director of Vinatex and VTJ's general director, said all the … [Read more...]

Social News 9/4

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Baby bear to arrive at rescue centre tomorrow A six-month-old sun bear (Helarctos malayanus) will arrive at the Viet Nam Bear Rescue Centre tomorrow after having been rescued by AnimalsAsia. The baby sun bear, weighing 15 kilograms, was rescued in late February from poachers by forest rangers in the northern mountains of the Dien Bien Province's Nam Po District. It was then moved to the centre for further care. AnimalsAsia is committed to helping it integrating with other sun bears at the centre. The life span of a sun bear is about 30 to 35 years. Road accident kills three, injures three A road accident killed three and injured three more on National Highway 14B after a collision between a minivan and a truck near Dai Loc District in Quang Nam Province yesterday. Police said initial reports indicated the minivan was travelling at a high speed when one of the tires burst. The driver lost control and crashed into a truck which was parked on the side the road. Local residents … [Read more...]

Aviation sector seeks funding to improve services

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A part of Terminal 2 at Noi Bai International Airport in Ha Noi. The domestic aviation industry needs significant capital to invest in infrastructure between 2015 and 2020. — VNA/VNS Photo Huy Hung HA NOI (Biz Hub) — The domestic aviation industry needs significant capital to invest in infrastructure during 2015-20 to improve airline services, head of the Civil Aviation Authority of Vietnam (CAAV) Lai Xuan Thanh said. Speaking at a seminar with the theme "Socialising management and exploitation of airports in Viet Nam," which was held in Ha Noi yesterday, Thanh said investment capital from the State and businesses had met part of the demand for the country's aviation development plan, making it necessary to mobilise capital from other sources in society. The seminar was held after airline firms including VietJet Air, the national flag carrier, Vietnam Airlines (VNA) and a number of businesses requested the rights for operating several airport buildings, such as the T1 … [Read more...]

VBL, Youth Federation run water saving project

Tran Minh Triet (R), deputy general director of VBL, and Nguyen Phi Long, chairman of the Vietnam Youth Federation are seen at a signing ceremony on Monday - PHOTO: TAM AN

Tam An Under this agreement, the two sides will join hands to organize numerous activities to call on the community, especially youth, to change their daily habits of using water in the period from 2015 to 2017. VBL will also help support the digging of water wells, set up water filtering systems and build water stations in remote areas in the country. VBL has been implementing the program since 2012. Within this program the company has funded six clean water projects in Tien Giang, Danang and Can Tho to allow hundreds of families to have access to safe water, and 12 scientific projects to protect water resources. VBL has invested VND200 billion to build wastewater treatment systems at its facilities. … [Read more...]