Hi-tech agriculture proves effective in Dong Nai Agricultural production has been affected by abnormal weather conditions, climate change, and diseases over recent years. Many farms in southern Dong Nai province have applied high-technology in agricultural production in order to cope with the situation, helping increase quality and output. High-tech production requires massive investment, not just capital but also technology, equipment, and “grey matter”, to adapt to cutting-edge manufacturing methods. High-tech manufacturing models have been expanded around Dong Nai, especially in animal husbandry and on poultry farms. Dong Nai has more than 46,000 hectares of crops using water-saving technology and the province has gradually changed to green breeding in accordance with Vietnamese Good Agricultural Practice (VietGAP) standards. Agriculture accounts for 8.3 percent of Dong Nai’s economic structure and agro-forestry-fisheries value currently stands at nearly 1.8 billion USD. The results reflect the province’s large-scale manufacturing development investment and high-tech application to adapt to unfavourable conditions and meet market demand. Vietnam’s growth outlook to depend on authorities’ response to new outbreak: WB Vietnam’s growth prospects will depend on how well and how quickly the authorities will bring the new coronavirus outbreak under control and how quickly international and national vaccinations will proceed, according to the World Bank (WB). In its Vietnam Macro Monitoring report issued earlier this month, the WB said January’s industrial production index jumped by 24.5 percent year on year, the highest growth rate since the beginning of 2019. Merchandise exports and imports respectively grew 51.8 percent and 41.8 percent from the same period last year. The preliminary January goods trade surplus is estimated at 1.1 billion USD. Exports to the US and China continued the robust growth of 2020 while those to the EU, ASEAN, Japan …
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Vietnam business law should be more open to debt for equity swap
The Hanoitimes - While debt-to-equity swap may pose risks to the economy, this practice is actually an efficient channel for enterprises to mobilize capital, Lawyer Ha Huy Phong, CEO of Inteco law firm told Hanoitimes in an interview. Lawyer Ha Huy Phong, CEO of Inteco law firm. Do current regulations in Vietnam allow the debt for equity swap? A debt capital market does not only issue credit or transfer debts between qualified financial institutions, but also has other functions, including the debt for equity swap. Therefore, such practice is considered as part of corporate finance and subject to specialized regulations and laws in this field. As stipulated in economic or services contracts, enterprises are obliged to repay debts for their lenders or providers. However, in case the contract stipulates that the parties can swap the debt amount into investment capital, such move is not forbidden by the law. In other words, there is no regulation that ban debt-for-equity swap practice. What conditions required for this practice? Two parties can come to an agreement for the swap and are, thus, responsible for this practice. However, they should be aware that the swap would turn one party into a shareholder of their debtor. Therefore, they should finalize the following procedures, including: Firstly, there should be a contract stipulating a conversion of debt into equity. This contract should clearly state the timing and amount of debt subject for conversion, measures to deal with principal and interest, or specific stake that the shareholder would own following the swap. Secondly, two parties must complete internal procedures of the company in subject, including the approval of new shareholders or change in the ratio of stake between shareholders. Thirdly, these processes must be certified by competent government agencies to formally acknowledge new shareholder. Fourthly, for enterprises that set to receive contributed …
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Coffee industry seeks to weather COVID-19 crisis
Since Vietnam joined the International Coffee Organization (ICO), the coffee industry has experienced three crises, with the first occurring in 1991 when the ICO removed the quota system, causing the price of Arabica coffee to drop from US$4,000 per tonne to US$3,000 per tonne. The second happened in 2000 when the price of Robusta coffee dropped to US$400 per tonne, and the third took place last year when the price fell by between US$1,300 and US$1,400. Addressing this thorny issue, almost all coffee businesses have participated in e-commerce trading platforms, marketing the products in London and New York. Private firms have also moved to swiftly set up websites in order to sell their coffee products online, with on-demand home delivery services witnessing rapid growth. Aside from serving customers at coffee shops, take-away services have also been added to allow customers to increase the efficiency of doing business whilst simultaneously ensuring COVID-19 preventive measures are in place. Several businesses have also invested in processing roasted, ground, and instant coffee as a means of catering to consumers’ diverse tastes. They have taken advantage of opportunities in exporting coffee beans to markets that the country has signed free trade agreements with. Besides foreign firms such as Nestle, Olam, Ca phe Ngon, and Tata, several Vietnamese enterprises including Tin Nghia Corporation, Intimex Group, An Thai Company, and Viet My Company have poured capital into intensive processing by building instant coffee factories with popular names. Most notably, small roasting facilities that specialise in processing specialty coffee for a chain of between 10 and 20 coffee shops by using coffee machines have also witnessed rapid growth. Furthermore, Trung Nguyen Legend has recently launched its official brand store on Amazon, marking an important step toward bringing local coffee to the world via e-commerce platforms. With regards to this strategic move, a …
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