BUSINESS IN BRIEF 15/3

New bond trading system launches The second version of the Government bond trading system was introduced by the Ha Noi Stock Exchange last week and will be used for the first time next Monday when Circular 234/2012/TT-BTC takes effect. The system was upgraded in response to provisions in the circular concerning risk management and repurchase agreement (repo) trading. A repo agreement occurs when the selling party agrees to repurchase bonds in the future. The new version integrates bond and treasury bill trading, information systems and a yield curve. "The Government bond market has actively contributed to investment resources of both the State budget and financial institutions this past year," said Deputy Minister of Finance Tran Xuan Ha. In addition, Ha said, the liquidity of the market improved significantly -boosting capital turnover and creating conditions for short-term capital to develop into long-term funding, which would help the domestic economy. The deputy minister told … [Read more...]

BUSINESS IN BRIEF 19/4

Japan to fortify supporting industries Japan will provide concessional loans for Vietnamese supporting industry firms in a bid to strengthen its industrial investments in Vietnam. The Japan International Cooperation Agency (JICA) and the State Bank last week introduced a credit programme for Vietnamese small- and medium sized enterprises (SMEs) operating in supporting industries. Under the plan, an SME, which in Vietnam is defined to have total maximum assets of VND20 billion ($961,358) and employees of no more than 300, would be granted consessional loans worth $1.2 million for each supporting industry project, within ten years and with a grace period of maximum two years. Credit will be provided by 23 local banks. The programme would be expanded to turn local SMEs into big ones and might become large and powerful international suppliers in the future, said Kyoshiro Ichikawa, a Vietnam-Japan Joint Initiative Working Team 4-1 leader. "Finance remains the biggest challenge for local … [Read more...]

BUSINESS IN BRIEF 23/3

Dialogue discusses PPP projects in Vietnam The first high-level dialogue to accelerate Public-Private Partnership (PPP) projects in Vietnam was held in Hanoi on March 21. The event was co-chaired by Minister of Planning and Investment (MPI) Bui Quang Vinh and Japan Bank for International Cooperation (JBIC) General Director, Hiroshi Wantanabe, along with related representatives. Addressing the dialogue, Minister Bui Quang Vinh emphasised that the friendship and cooperation between Vietnam and Japan has developed well and seen remarkable milestones across many fields. He highlighted Japan's support, especially in strengthening cooperation between the private sector and the State sector to develop Vietnam's infrastructure. Japan is now Vietnam's largest Official Development Assistance (ODA) provider and the biggest national investor. Vinh also spoke highly of JBIC's contribution to infrastructure projects with the involvement of a number of international partners. JBIC has been a … [Read more...]

Safurni opens city’s furniture center

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South Asia Furniture (Safurni), an alliance of 12 local exporters of furniture products, along with its partner ADS on Wednesday opened the first ADS-Safurni distribution center in HCMC's District 3. Local furniture demand is estimated at $3 billion in value, largely taken by imported products at middle- and small-sized retail stores at home. "Now is the right time for the establishment of a distribution center of home-made furniture," Thang noted. Besides, the ADS-Safurni center also provides products to building projects, Thang said, adding interior furnishing items made in line with foreign catalogues will help member companies get updates about the latest trend. Specially, the producers make products in many different styles with various designs for living rooms, bedrooms or floorboards. Thang hopes the center will win the confidence of construction works owners, saying his alliance will set up a company to realize its long-term development target in the near … [Read more...]

Hundreds hospitalized in two food poisoning cases

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Hundreds of workers were hospitalized in two food poisoning cases that took place on July 10 in the southern provinces of Binh Duong and Long An, causing serious concerns on food safety and hygiene conditions once again. More than 50 workers of the Thinh Viet Furniture Company in Binh Duong Province were admitted to the General Hospital in Tan Uyen District on afternoon of July 10, some unconscious while others were vomiting profusely. According to the workers, they had meals in the company canteen and began suffering soon after. Dr. Le Van Minh said that most of the workers had been discharged from hospital except for seven who were still in intensive care and under observation. On the same day, the preventive medicine center in Tan Uyen District took samples of the food for testing. Also on July 10, 60 workers of the Le Long Vietnam Company in Ben Luc District in the southern province of Long An were taken to hospital when they complained of abdomen pain, diarrhea, fever and … [Read more...]

BUSINESS IN BRIEF 18/6

Tunnel project to link Phu Yen with Khanh Hoa More than VND15.6 trillion ($750 million) will be spent to build a tunnel through the Ca and Co Ma mountains to link up the two central provinces of Phu Yen and Khanh Hoa. The ceremony to sign the contracts for the BOT (build-operate-transfer) and BT (build-transfer) project took place in Hanoi on June 14. In total the tunnel will be 13.4 kilometres long, with the section underneath Ca pass 3.9 kilometres in length. The project will be carried out by the Hanoi Construction Corporation, the Nam Trung Bo and Tay Nguyen Joint-Stock Companies under the Mai Linh Group, the Hai Thach Investment Joint-Stock Company and the Asia Joint-Stock Company. Construction is scheduled to start in the third quarter of 2012 and be completed by the second quarter of 2016. Once being completed, the tunnel will reduce traffic accidents on National Highway 1A and help develop the central region's economy. Thua Thien-Hue's biggest hydropower plant in … [Read more...]

BUSINESS IN BRIEF 12/10

Donors urge quality public investment Donors called on Vietnam to restructure public investment to foster quality growth at a workshop in Hanoi on October 4. While examining the Ministry of Planning and Investment (MPI)'s five-year socio-economic development draft, most donors supported the country's projected annual growth rate of 6.5 percent in the next five years instead of 7 percent. They said the reasonable rate would enable Vietnam to improve social protection policies, increase basic services for the poor and the most vulnerable groups, and create more jobs. Eamonn Murphy, the UN Resident Coordinator in Vietnam, said the country should pay attention to equity issues as economic growth alone cannot ensure human development. Rie Vejs Kjeldgaard, ILO representative in Vietnam, applauded issue of labour being pushed to the forefront aimed at reducing the unemployment rate amongst workers in urban areas to below 4 percent, creating jobs for over 8 million in five years. … [Read more...]

BUSINESS IN BRIEF 9/10

CEOs learn risk management lessons Economic risks including high inflation and interest rates, together with unpredictable monetary policies, are among the risks faced by CEOs of Vietnamese firms, experts say. Risks were defined as uncertain future events that could influence the achievement of a company's strategic, operational, financial and compliance objectives, they said at a seminar held last Friday in HCM City. Co-organised by the HCM City Investment and Trade Promotion Centre in collaboration with International Business Knowledge Corporation, the seminar was attended by 200 CEOs, managers and experts. Pham Do Chi, a former senior economist at the International Monetary Fund (IMF), said inflation was forecast to accelerate quickly in the next two months due to high shopping demand for the upcoming holiday season. The inflation rate is estimated at 19-20 per cent for this year. The Asian Development Bank has lowered the forecast in the GDP growth rate of Viet Nam from … [Read more...]

All not well, admits Vietnam furniture industry

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The booming furniture industry may be stymied by its over-reliance on imported wood, lack of coordination among various players, and the weakening of the dollar, businesses have told Thanh Nien. Foreign guests take a look at Vietnam-made furniture at the 2008 Vietnam International Furniture and Home Accessories Fair mid-March … [Read more...]

Businesses respond to e-customs procedures

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As many as 28,948 enterprises nationwide, or nearly 93 percent of those conducting import-export activities, have used e-customs service since it was officially launched earlier this year. The procedures were processed by all 34 customs departments across the country during the first two months of the year, according to the General Department of Customs. A total of 696,218 customs declarations were computerised, helping with an import-export volume of 33 billion USD, which accounted for nearly 92 percent of the country's total figure. E-customs was piloted in 2005 in the northern port city of Hai Phong and HCM City, under the Government's Decision 149. The procedures have so far been handled at 90 customs sub-departments across 20 cities and provinces nationwide, including Hanoi, central Da Nang city, and the southern provinces of Dong Nai and Binh Duong, which house a large number of FDI projects. Source: VNA … [Read more...]

BUSINESS IN BRIEF 14/3

Kien Giang pulls plug on projects The southern Kien Giang Province People's Committee has pulled the plug on 11 projects in Kien Luong District following undue delays by the investors in proceeding with them. It has ordered the Department of Planning and Investment to revoke the licences issued for the projects. Le Khac Chi, the department director, said the projects have a combined investment of VND7.2 trillion (US$345.8 million). One of them, which sought to build infrastructure for the 2,595-hectare Kien Luong Industrial Park and the Khoe La Port (100ha) alone was worth VND7 trillion. All of them had been approved between 2006 and 2011, but fell behind schedule, Chi said. The committee also instructed the department to review the progress of 21 other long-delayed projects also in Kien Luong to find the cause and solutions. Among them are four large projects — a thermal power costing $6.7 million planned by the Tan Tao Group, the VND2.6 trillion ($128.7 million) Hon Chong Port by … [Read more...]

Cambodia, Vietnam target USD5 billion trade

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Vietnamese businesses are enjoying more investment opportunities in Cambodia thanks to preferential trade conditions offered by both countries. Vietnam is expected to increase its Cambodian market investments to US$3.2 billion. The value of two-day trade is predicted to hit US$5 billion in 2015. Cambodian Planning Minister Chhay Than says Cambodia is improving conditions for foreign investors, including those from Vietnam. A Vietnam-Laos-Cambodia ministerial meeting has been scheduled for the end of March 2013 to draw up plans aimed at developing the triangle area into a famous industrial and rubber production zone, he says. According to Vietnam Customs’ 2007 statistics, Vietnam-Cambodia trade turnover stood at US$1.19 billion with Vietnamese exports valued at US$991 million. One year later, Vietnam increased its Cambodian export revenue by 31 percent to US$1.431 billion, representing a trade surplus of US$1.221 billion. In 2009, despite the repercussions of the global … [Read more...]

Cambodia, Vietnam target US$5bn trade turnover in 2015

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(VOV) - Vietnamese businesses are enjoying more investment opportunities in Cambodia thanks to preferential trade conditions offered by both countries. Vietnam, Cambodia enhance economic cooperation Cambodia-Vietnam trade increases Vietnam's Cambodian investment projects success Vietnam is expected to increase its Cambodian market investments to US$3.2 billion. The value of two-day trade is predicted to hit US$5 billion in 2015. Cambodian Planning Minister Chhay Than says Cambodia is improving conditions for foreign investors, including those from Vietnam. A Vietnam-Laos-Cambodia ministerial meeting has been scheduled for the end of March 2013 to draw up plans aimed at developing the triangle area into a famous industrial and rubber production zone, he says. According to Vietnam Customs' 2007 statistics, Vietnam-Cambodia trade turnover stood at US$1.19 billion with Vietnamese exports valued at US$991 million. One year later, Vietnam increased its Cambodian … [Read more...]

Cambodia, Vietnam target US$5bn trade

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(VOV) - Vietnamese businesses are enjoying more investment opportunities in Cambodia thanks to preferential trade conditions offered by both countries. Vietnam, Cambodia enhance economic cooperation Cambodia-Vietnam trade increases Vietnam's Cambodian investment projects success Vietnam is expected to increase its Cambodian market investments to US$3.2 billion. The value of two-day trade is predicted to hit US$5 billion in 2015. Cambodian Planning Minister Chhay Than says Cambodia is improving conditions for foreign investors, including those from Vietnam. A Vietnam-Laos-Cambodia ministerial meeting has been scheduled for the end of March 2013 to draw up plans aimed at developing the triangle area into a famous industrial and rubber production zone, he says. According to Vietnam Customs' 2007 statistics, Vietnam-Cambodia trade turnover stood at US$1.19 billion with Vietnamese exports valued at US$991 million. One year later, Vietnam increased its Cambodian export revenue by 31 … [Read more...]

Cambodia, Vietnam target US$5bn trade in 2015

Exports-to-Cambodia%20(1).jpg

(VOV) - Vietnamese businesses are enjoying more investment opportunities in Cambodia thanks to preferential trade conditions offered by both countries. Vietnam, Cambodia enhance economic cooperation Cambodia-Vietnam trade increases Vietnam's Cambodian investment projects success Vietnam is expected to increase its Cambodian market investments to US$3.2 billion. The value of two-day trade is predicted to hit US$5 billion in 2015. Cambodian Planning Minister Chhay Than says Cambodia is improving conditions for foreign investors, including those from Vietnam. A Vietnam-Laos-Cambodia ministerial meeting has been scheduled for the end of March 2013 to draw up plans aimed at developing the triangle area into a famous industrial and rubber production zone, he says. According to Vietnam Customs' 2007 statistics, Vietnam-Cambodia trade turnover stood at US$1.19 billion with Vietnamese exports valued at US$991 million. One year later, Vietnam increased its Cambodian export revenue by 31 … [Read more...]

Real estate firms owe huge tax arrears

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Real estate firms currently owe thousands of billions of VND worth of land use right fees while tax agencies are finding it difficult to recover the debts. Tax agencies said from 2011 to date numerous real estate companies have been making losses and have yet to pay their land use right fees. The Construction Engineering Joint Stock Company in Hanoi has yet to pay VND84 billion (USD4 million) for their Hong Kong Tower development. In order to support the investor, Hanoi municipal authorities decided to extend the deadline for the firm to pay the fee within year. However, to date the company still owed over 40.6 billion (USD1.93 million) worth of land use fees, excluding VND21 billion (USD1 million) worth of land use fees extended to May 10 this year. Ha Do Group, the investor of the four-star Mercure hotel, currently owes over VND78.8 billion (USD3.76 million) worth of land use fees. Of the total, VND44.8 billion (USD2.13 million) were overdue debts and VND34 billion (USD1.62 … [Read more...]

Housing market still moving

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Dinh Dung However, just two weeks after the sale announcement fixed with the starting price of VND1.7 billion, Trang sold the home measuring 75 square meters at VND1.62 billion and now she is in the process of finalizing the deal. Understand the customer In fact, while numerous realty developers are facing high risks of bankruptcy given financial constraints, the property market has still been moving on, with certain segments having recorded many successful transactions. Nguyen Duy Minh, general director of Hung Thinh Land, reported that his firm has still done good business with the apartment segment over the past time. Minh’s company has been really busy with trading, with a good sale growth recorded in 2012. Hung Thinh Land marketed six condo projects in HCMC last year, with over 400 flats sold, with an average of some 33 units changing hands a month. The present market is not so bustling as the previous heyday but it is still moving forward thanks to a … [Read more...]

Poor management puzzled by heavy dangerous waste

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Increasing amount of dangerous waste due to fast industrialization has put a big pressure on environment protection efforts, officials said at a conference Monday. The entryway of the industrial zone Tan Thuan in HCMC's District 7. Industrial waste is a kind of dangerous waste that has puzzled environmental authorities (Photo: Minh Tri) Statistics from the Department of Environment Criminals from the Ministry of Public Security showed that the country last year discharged around 32 million tons of solid waste, including around 200,000 medical waste, 11 million tons from agricultural areas, 13 million tons from urban residential areas and six million tons of industrial waste. Many of them are ranked as dangerous waste, said the department head Nguyen Xuan Ly. Ly said that only around 60 percent of dangerous waste has been treated according to environmental requirements. The rest has been either buried, discharged everywhere or recycled illegally. His deputy revealed at the … [Read more...]

Polluter uses legal loophole to delay paying heavy fine

VietNamNet Bridge -Industrial firms found committing grave violations in disposing of their toxic solid waste are exploiting a legal loophole to avoid or defer paying fines, the Tuoi Tre (Youth) newspaper reports. The Binh Chanh Construction Investment JSC (BCCI) has delayed paying fines imposed on it for more than two years now. According to a Government decree (No. 174/2007/ND-CP dated Nov. 29, 2007) any organisation or individual generating and discharging harmful solid waste while manufacturing or trading has to pay environmental protection charges. … [Read more...]

Builders struggle with increasing prices

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Many property enterprises are struggling to survive the increase in building materials, electricity and gasoline prices combining with the government's tight monetary policy to tame inflation. View of the construction site of an apartment building in District 2. Property firms are hit hard by the increase in building material prices and interest rates (Photo:Minh Tri) Chairman Le Chi Hieu of HCMC-based construction firm Thuduc House said macroeconomic policies were making great impacts to the property market. "It takes two years or more to finish a property project. Thus, construction firms need medium- and long-term loans. However, the tight monetary policy will raise interest rates, leaving builders struggling to borrow money from banks," Hieu said. Efforts to cope with the increasing price and high interest rates have seen most property firms reduce investment, slow down the construction progress and focus solely on projects with high return rates, he noticed. Construction … [Read more...]