Government praises businesses for cost savings

Vietnam Airlines is one of the companies that were praised for cost savings by the Government.

Deputy Prime Minister Vu Van Ninh on Monday sent a dispatch praising some ministries and state-owned economic groups and corporations for well implementing the Prime Minister's instruction on management cost saving and cost price reduction in 2013. The commended Ministries include Finance, Industry and Trade, National Defense, Transport and Construction. … [Read more...]

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State-own enterprises urged to quicken equitisation

Hanoi, July 4 (VNA) - Some 135 State-own enterprises (SOEs) listed in the 2014-2015 equitisation plan are urged to set up their own steering committees to hasten the process of their equitisation. They are expected to declare their asset values by the end of the second quarter in 2015 and have their privatization plans approved by the third quarter of the year. As many as 432 SOEs have been planned for equitisation in 2014 and 2015. By June 20, 38 SOEs were privatized, two dissolved, 15 … [Read more...]

Nghe An cement manufacturer enjoys booming sales

The Vicem Hoang Mai Cement Joint Stock Company has sold 765,600 tonnes of cement on the domestic market since the beginning of 2014, equivalent to 113 percent of the year's plan. The sales of Hoang Mai cement have risen in many localities. The central province of Ha Tinh accounts for 58 percent of the market share of the firm and Nghe An province, 30 percent. The success has been attributed to the manufacturer's efforts in applying advanced technologies in production, adopting innovative … [Read more...]

SOE Restructuring: Slow Progress, Limited Results

The conference promoting the restructuring of state owned enterprises (SOEs) was organised on April 2, reviewing the restructuring of groups, corporations and banks of the Block of Central Enterprises from 2011 to present, and working out a specific plan for 2015. Speaking at the conference, Nguyen Van Ngoc, Permanent Deputy Secretary of the Block's Party Committee, said that currently, the Party Committee of the Block of Central Enterprises has 32 groups, corporations, and banks. In the period … [Read more...]

Oversupply forces domestic cement producers to look abroad

Oversea market is viewed as a potential solution for Vietnamese cement producers as supply still exceeds demand and the domestic market outlook remains grim, industry insiders have said. Hoang Manh Truong, Chairman of the board of the Vissai Ninh Binh Group, said his group boosted cement exports last year, according to the Vietnam Investment Review. The Chairman of Vissai Ninh Binh Group, a big private economic group, with cement production as one of its core businesses also said his … [Read more...]

Cement export to ease overproduction

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Promoting exports is still viewed as a potential solution for a cement industry currently domestic oversupply pressures. Hoang Manh Truong, chairman of the board of the Vissai Ninh Binh Group, a big multi-field non-state economic group with cement production as one of its core functions said the group's cement and clinker was being exported healthily, fetching $54-60 per tonne depending on the market. He said that last year although domestic consumption was low, the group reached its … [Read more...]

Vietnam’s failing cement makers fear foreign buy-outs

Foreign investors are keen to buy into Vietnam's failing cement makers in order to access clinkerPhoto: Duc Thanh

Cement industry insiders are worried that foreign investors will swallow up domestic producers through merger and acquisition activities as many Vietnamese companies are on the verge of bankruptcy. A representative of state-run Vietnam Cement Industry Corporation (Vicem), Vietnam's largest cement producer, admitted that many domestic firms were on the verge of bankruptcy due to the falling domestic demand, high interest rates and oversupply. Vicem itself is already burdened by profligate … [Read more...]

Cement firms remain stuck

The outlook is bleak for Vietnam's cement producers as years of oversupply is exacerbated by sinking demandPhoto: Le Toan

Another tough year is forecasted for cement firms amid an oversupplied and sluggish property market. Total cement consumption in 2014 is estimated at 62-63 million tonnes, up 3 per cent against 2013. Of this, 48.5-49 million tonnes is to serve the domestic market and 13.5-14 million tonnes is for export, according to the Ministry of Construction's latest forecast. Assuming that consumption matches expectations and cement firms do not amend their capacity, about seven million tonnes will … [Read more...]

State-owned giants to be audited in 2014

The number of firms selected for audit this year is 35 more than in 2013.

It is expected that 184 companies will be audited in 2014, including 43 state-owned corporations and groups, according to the State Audit of Vietnam. This year's list includes big state-owned corporations and groups such as military-run Telecommunications Group (Viettel), Bao Viet Group, Vietnam Cement Industry Corporation (Vichem), Petrolimex Joint Stock Insurance Company (PJICO), the Debt and Asset Trading Corporation (DATC), among others. The audits will focus on assessment of overall … [Read more...]

PAN, SHN, HVX Announce Share Issuance

Pan Pacific Corporation (PAN), Ha Noi Investment General Corporation (SHN) and Hai Van Cement Joint Stock Company (HVX) announced share issuance. PAN approved to issue 20.3 million shares, with a minimum price of VND 32,000 per share, to its foreign investors in the first quarter of 2014. The company estimates to collect around VND650 billion to be used to invest in agricultural, seafood and consumer food companies. PAN currently owns a charter capital of VND 200.5 billion. SHN plans to issue … [Read more...]

Vietnam construction industry eyes foreign markets

Many domestic construction material producers have outlined their new business plans recently, giving priority to developing exports. They see this as a way to increase profits because the domestic market outlook is still gloomy, analysts say. They note that although domestic construction material market has in recent months showed slight recovery signs after the two years of sluggishness, significant improvements in purchasing power cannot be expected. The added focus on exports also has … [Read more...]

Football clubs struggle in hard economic times

Banner for Vicem Haiphong FC

The Vietnam Professional Football Company (VPF) said that local football clubs will continue to face serious financial difficulties over the next two years. The V-League Cup has already lost K. Kien Giang and Binh Dinh FC, and may lose more players, as a major sponsor, Vietnam Cement Industry Corporation (Vicem), decided to leave the football team in the hands of Haiphong municipal government. A member of VPF, Tran Duy Ly, along with Haiphong authourities confirmed that the club would … [Read more...]

Vicems applies ISO to ensure labor’s safety

Vicem Hoang Thach Cement One Member Co Ltd is one of Vicem's member units that well implement occupational safety operations

(VEN) - Over recent years, Vietnam Cement Industry Corporation (Vicem) has broadly applied the occupational health and safety management systems across the whole sector to minimize negative impacts on worker safety. As the sector can easily cause environmental pollution, the risks of occupational accidents and diseases are quite high, while implementation of the Occupational Health and Safety (OSH) procedures can be quite complicated. Over the past years, Vicem's member units in many … [Read more...]

BUSINESS IN BRIEF 1/7

HCM City outlines garment ambition Authorities in HCM City plan to double the garment and textile industry's export turnover by 2015 over the 2010 figure of US$3.3 billion. The city, which sees the industry as one of its five key exports from 2011 to 2015, has asked manufacturers to expand production, improve product quality and find new markets. In a report released on Tuesday, the Thoi Bao Kinh Te (Viet Nam Economic Times) said that most garment and textile factories had moved to rural … [Read more...]

Cement exports rise sharply

Van Nam The ministry in a recent report states that cement sales have amounted to 27.9 million tons this year, posting growth of 18.3% year-on-year. Of which, cement export volume was around 5.2 million tons, jumping 70% over the-year ago period. Due to slackened demand at home, many companies in the industry have focused on shipping products abroad, said Tran Van Huynh, chairman of the Vietnam Construction Materials Association. The cement industry expects to export over 10 million tons of … [Read more...]

Cement sales on rise

The Saigon Times Daily Overall, 23.8 million tons of cement was sold in the first five months, meeting 41% of the year's plan, in which 19.15 million tons was consumed in the local market, up 9% over the same period in 2012. The construction ministry predicts domestic cement output will reach 79.45 million tons in 2013, 81.56 million tons in 2014 and 83.86 million tons in 2015, according to a report on the Government web portal. Le Van Toi, head of the building materials department under … [Read more...]

BUSINESS IN BRIEF 3/5

Fish breeding may disappear from Hanoi village Just few households in Yen Phu Village, which is famous for ornamental fish breeding, have maintained their traditional industry, while the majority has turned to importing fish for higher profits. Previously, households in the village often raised fish which were sold at reasonable prices. The village has been known as one of the biggest ornamental fish distributors. However, due to the increasing demand for ornamental fish, and complicated … [Read more...]

As cement sector sours, foreign firms eye M&As

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The hard time in Vietnam's cement industry is creating golden opportunities for foreign investors to buy in domestic cement companies on the verge of bankruptcy. Nguyen Van Diep, chief administrative officer of Vietnam National Cement Association, said that the mergers and acquisitions (M&As) trend was considered the most effective tool for restructuring the domestic cement sector as cement firms were facing great challenges. In the past three years, there have been approximately 10 … [Read more...]

Solutions for Vietnam Cement Industry

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In the past 10 years, the cement industry in Vietnam has increasingly shown its weaknesses of oversupply, low investment efficiency and business losses. By this time, the cement excess has reached 20 million tonnes. The majority of businesses in the cement industry, including the Vietnam Cement Corporation, are facing large losses. Promoting foreign investment into domestic cement companies is the solution that Vietnam Association of Financial Investors (VAFI) offered to solve the current … [Read more...]

BUSINESS IN BRIEF 15/4

Steel consumption increase 'shortlived' Steel consumption in March climbed by nearly 80 per cent to 450,000 tonnes over the previous month, according to the Viet Nam Steel Association (VSA). The association told Viet Nam News yesterday that its members produced about 448,000 tonnes of steel in March. "Some people say this is a good sign for the industry. We, however, do not agree," said Nguyen Tien Nghi, VSA deputy chairman. Nghi said that sales in March last year was about 522,000 … [Read more...]