BUSINESS IN BRIEF 17/9 Internet seminar to look at Viet Nam Cloud computing, big data, mobility and social networks will top the agenda at a seminar titled Viet Nam Information and Communication Technologies Outlook to be held in Information security on new platforms would also be discussed at VIO 2013, Chu Tien Dung, chairman of the HCM City Computer Association (HCA), said. Experts would provide an overview of new technology trends and applications, development of ICT infrastructure, and opportunities and challenges in the country's ICT industry, he said. Many local and foreign firms like F5, Cisco, Sao Bac Dau, Trend Micro, and EMC will display their latest technologies and products. To be organised by the HCM City Department of Information and Communication and the HCA on September 20, the 18th annual seminar will see the participation of leading local and foreign ICT experts, state agencies, businesses, and ICT users. The HCA also said it would organise a function to give away awards to the country's top ICT enterprises on September 19, the day it marks its 25th anniversary. The awards are given away every year to recognise, popularise, honour, and encourage firms in the ICT industry, to promote and raise their competitive ability. Foreign donors have agreed to contribute 857 million euros (US$1,137 million) for the first stage of the project to build a 8.9-km section of Metro Line No 5 linking The HCM City Management Authority for Urban Railways (MAUR) said ADB will finance US$500 million, EIB 150 million euros, and the Spainish Government 200 million euros. The remaining will be financed by the Vietnamese Government's counter capital. This is the third metro route in Construction of Metro Line No 5 is scheduled to start in 2015 to link the Metro Line No 1 (construction of which began in 2012) and Metro No 2 (construction to start next year). According to the HCM City Urban Railway Management Board, after completion, Metro Routes No.1, 2 and 5 will each carry about 526,000 passengers a day. Tax cuts likely for micro financiers Micro-finance institutions are likely to be exempted from corporate income tax for two years, according to a circular drafted by the Ministry of Finance (MoF). Micro-finance institutions mainly provide banking services to individuals and households with low income as well as super small businesses. Under the draft, micro-finance institutions licensed by the State Bank of After the two years of tax exemption, the institutions would also enjoy a 50 per cent income tax reduction over the next four years on revenues derived from micro-finance activities. The length of the tax exemption or reduction would be calculated from the first year the micro-finance institutions had earned taxable income. Tax breaks for other micro-finance institutions would be 20 per cent, but the rate would drop to 17 per cent from January 1, 2016. Belgian Minister prepares to study A delegation of Belgian seaport experts will pay an official visit to The delegation will be led by the transport minister of Flanders, a northern region of Speaking at a recent conference with Nguyen Huu Tin, the city's People's Committee's vice chairman, Belgian Ambassador to Viet Nam Bruno Angelet asked the city to provide more information on the potential of the Hiep Phuoc Port. This would help prepare for the visit of the transport minister of Construction of the Upon completion, the port's pier length will rise to 1,800 metres. It will be capable of clearing about 18 million tonnes of cargo every year. The Tin said the second phase of the In the first phase, the river was dredged to a depth of 9.5 metres, allowing the After the second phase, when the river is dredged to a depth of 11.5 metres, the port will be able to receive larger vessels of 50,000-70,000DWT. The Once completed in 2014, the project will help speed up the construction of the Hiep Phuoc Port. Of the VND2.8 trillion (US$134 million) investment, VND2.2 trillion ($105 million) comes from Belgian Official Development Assistance (ODA) loans and the rest from the city budget, according to the city's Department of Transport. Nguyen Van Cong, deputy minister of Transport, said the project would help increase connectivity among seaports and enhance logistics and export services in The use of the PM demands dairy hike explanation The Prime Minister asked the ministries of Health and Finance on Thursday to report the high price of milk on the local market. A customer selects a dairy product for her children in Because the milk price is not controlled by the Government, dairy companies can increase prices at any time. Some milk products were listed at US$4-5 (VND80,000-100,000) per unit on customs declarations forms, but were retailed for VND400,000-900,000, according to the General Customs Office, The Pricing Management Department of the Ministry of Finance said the ministry had not conducted any investigation of milk prices because the product was not under its control. Reports on milk products sent to the department classified those for children under six as "nutrition products", placing them outside the scope of the ministry. In August, the Ministry of Finance asked the Ministry of Health to provide a list of companies producing and trading milk products, as well as a list of certified milk products for children under six years old of which the price had been stabilised and a list of nutrition foods for children under six. However, almost all firms did not call the items "milk products" when submitting the lists. In general, the consumer price index (CPI) is forecast to increase 1 per cent this month due to several factors, including the rainy season, increasing demand and higher tuition as the new school year begins. Meanwhile, the Ministry of Finance sent official letters to Petrolimex and Dong Thap Oil and Gas Trading Ltd Company, two petrol dealers, on Thursday to ask the two firms not to change the current retail prices of oil and petrol. MoF planned to cooperate closely with the Ministry of Industry and Trade to follow fluctuations in oil and petrol prices on the world market in order to manage prices on the local market. To ensure price stability this month, the Pricing Management Department proposed ministries, sectors, provinces, cities and enterprises continue stabilising the price of goods and services, ensuring a balance between supply and demand, organising trade promotion programmes and not increasing prices for health care services. Farmers face fight as rice exports drop off Rice exports for September is estimated at about 650,000 tonnes, bringing the third quarter's total to 1.84 million tonnes, 230,000 tonnes less than planned. A Viet Nam Food Association (VFA) report says enterprises exported 620,532 tonnes of rice last month for a FOB (free-on-board) value of US$264.34 million, a year-on-year fall of 32.55 per cent in volume and 33.09 per cent in value. With supply outstripping demand, rice exporters have faced considerable difficulties this year. Recently, the Thai government decided to slash its rice prices to clear its stock, affecting the rice market in The Thai Government has decided to lower the price of inventory rice through several means, including organising auctions for exporters, auctioning on the Agricultural Futures Exchanges of Thailand (AFET), selling rice under government contracts and even selling directly to international traders. However, results of such moves have not been as good as expected since demand is weak and buyers are still cautious about Buyers are still waiting and watching the market's movements, as they are not sure of the prices that the Thai government will accept; and how deep the price cut will be. In general, a strong reduction in Thai rice prices has had global impacts, and other Asian markets have been particularly affected. In addition, There is yet another development that is expected to affect the world rice market. The Indian parliament has recently passed the Food Security Bill, which is the biggest national food programme in the world that will support 800 million people or 67 per cent of the Indian population. The programme is expected to cost $18 billion. But there are concerns over how such a huge programme can be carried out. Export prices of Indian rice have reduced much recently, mainly due to a depreciation of its currency, the rupee, while prices in the domestic market have been stable, the VFA said. Demand from The report said that as of August 31, VN, A conference intended to accelerate industry and trade co-operation between Co-organised by the Ministry of Industry and Trade's Trade Promotion Agency and the Trade Office at the Vietnamese Embassy in Speaking at the event, the Trade Counsellor at the Vietnamese Embassy in Recently, Under the plan, Dung said that Viet Nam has defined six industries that would be prioritised for co-ordination with Japan in the near future, including electronics; agricultural machinery; agricultural and seafood processing; ship building; the environment and energy saving; and the manufacture of cars and spare parts. During the event, Japanese companies heard about the status of Phu Quoc urged to become a special economic zone The project to turn Phu Quoc into a special administrative-economic zone is under scrutiny at a seminar in Phu Quoc island district in the southern Kien Giang province. In his opening speech on September 16, Deputy Prime Minister Vu Van Ninh said Phu Quoc is a great potential island district. As early as in 2004, the Prime Minister already approved an overall plan for development of Phu Quoc island until 2020. In order to make new breakthroughs in economic development, the political bureau of the party central committee has assigned the Government to formulate projects to build special economic zones such as Van Don in Quang Ninh province, Van Phong in Khanh Hoa province and Phu Quoc in Kien Giang province. The Deputy PM asked the participating scientists and experts to consider every possibility of turning Phu Quoc into a special economic zone with new breakthroughs in terms of institutions and laws. Many argued about whether to build Phu Quoc into a city late this year or to focus on forming a special zone in the coming time. They also emphasized the need to introduce the special economic zone law into the Constitution and build a mechanism for Phu Quoc to create competitive products in the international market. Shrimp exports to reach US$2.6 bln in 2013 The positive forecast has been attributed to the sharply increasing price of domestic shrimp, which is expected to bring higher profits to shrimp breeders and accelerate shrimp hatching to ensure a steady supply for export. The expected hike in the export value has also been influenced by the US Department of Commerce’s (DoC) recent confirmation that Vietnamese businesses trading with the This key recognition will also help boost Vietnamese enterprises’ turnover from shrimp exports is now at least US$250 million per month. VASEP have also revealed that Meanwhile, shrimp exports to the Japanese and EU markets have seen year-on-year growth of 11% and 3% respectively over the reviewed period. Vinamilk plans to build a factory in US The Vietnam Dairy Products Joint Stock Company (Vinamilk) is prepared to invest in building a milk factory in the After being licensed by the US Food and Drug Administration (FDA) to export its products to this potential market, the company will build a milk factory in the At present, Vinamilk has a powdered milk factory in Lien said Vinamilk plans to invest not only in the Finance Ministry plans tax cuts for micro-finance institutions Micro-finance institutions are likely to be exempted from corporate income tax for two years, according to a circular drafted by the Ministry of Finance (MoF). Micro-finance institutions mainly provide banking services to individuals and households with low income as well as super small businesses. Under the draft, micro-finance institutions licensed by the State Bank of After the two years of tax exemption, the institutions would also enjoy a 50 percent income tax reduction over the next four years on revenues derived from micro-finance activities. The length of the tax exemption or reduction would be calculated from the first year the micro-finance institutions had earned taxable income. Tax breaks for other micro-finance institutions would be 20 percent, but the rate would drop to 17 percent from January 1, 2016. Singapore group eyes more joint IPs in Vietnam Talking to The Business Times, a leading daily newspaper in He said his group considers Sembcorp is interested in the Vietnamese market regardless of the challenges faced by inflation, forex and bad debts, Teo said, adding that his group plans to double its shares from the current 33.3% a thermal electric power plant in the southern The group began construction on the PM Nguyen Tan Dung (second, right) and Singaporean counterpart Lee HsienLoong (second, left) attend the VSIP’s ground-breaking ceremony in Quang Ngai on September 13. Teo said his group will expand operations in The daily Today quoted PM Lee as saying that VSIPs in The organising board of the 68th trade fair announced on September 14 that Can Tho City will be an honourable guest at the 69th Accenta Trade Fair in The fair which has been held annually over the past 68 years is considered the biggest trade event in Governor of East Flanders Jaw Briers said Minister Counsellor to Belgium Vu Ba Phu said the organising board will set aside 1,000sq.m of display for Vietnamese businesses, providing an excellent opportunity for Mekong Delta provinces and Can Tho in particular, to promote their products to the international market. Around 100,000 guests are attending this year’s Accenta fair which runs from September 14 to 22, and More than 200 Vietnamese delegates from 12 European countries have examined ways to strengthen links and expand operations in this large, lucrative market. The The September 14 forum, held in Vietnamese Ambassador to Ukraine Ho Dac Minh Nguyet said the forum demonstrates the Party and State’s concern for Vietnamese businesses abroad and encourages them to operate in line with the legal system in their countries of residence. Ambassador to Belgium Pham Sanh Chau said success of overseas Vietnamese businesses helps raise He briefed delegates on new opportunities and challenges which will present when the Participants shared experiences in penetrating European countries. Pham Ngoc Chu, head of the overseas Vietnamese businesses association in Pham Minh Participants watched a video clip introducing successful businesses in The eighth forum will be held in New plant varieties offer untapped potential Although the number of certified new plant varieties every year has increased, many have not been put into large-scale production, according to experts. The Vietnam Academy of Agricultural Science (VAAS) has reported that 161 new plant varieties, mostly rice strains, were certified by the Ministry of Agriculture and Rural Development (MARD) in 2011 and 2012. During this period, the Cuu Long Delta Rice Research Institute also provided 27 rice varieties certified by MARD. The institute has had 132 rice varieties certified and put into production so far, according to the institute head, Le Van Banh. Nguyen Van Bo, VAAS director, said most plant varieties that are cultivated on a total area of more than 50,000ha were certified five to 10 years ago. Most vegetables, cashew, pepper and soybean varieties that are now being cultivated were certified more than 10 years ago, he said. Because there is no key plant variety for individual regions, agricultural production has not been equal in quality and has had low competitiveness and brought low prices, he added. MARD Deputy Minister Le Quoc Doanh said the quality of plant varieties must be improved to increase prices. Institutes and government agencies should create rice varieties with high yield as well, he said. Mai Xuan Trieu, Head of the Corn Research Institute, however, noted that the quality of our new "corn varieties is not lower than corn varieties of the The unstable output of the corn varieties occurred because of improper implementation of tending, irrigating, and fertilising. To increase the country's corn output by one tonne per hectare under the Government's requirements, cultivation processes must be improved. MARD plans to develop groups of plant varieties and advanced farming technologies for each region, and those that will adapt to climate change and be environmentally sustainable. The country exported US$27.5 billion of agricultural produce last year. Of that figure, plant produce accounted for 60 percent, according to MARD. Vietnamese rice faces disadvantages Experts warn Vietnamese rice—one of its major export staples– risks losing its competitive advantages on global markets unless a long-term quality improvement strategy is developed as soon as possible. At a recent conference in VFA Vice President Pham Van Bay said domestic rice exporters are struggling to overcome excess supplies and global dwindling demand. Vietnamese rice volume for export is forecast to fall in the coming years (Photo:vneconomy) Bay said there will be a fierce competition among rice suppliers later this year after VFA forecast Deputy Minister of Trade and Industry Tran Tuan Anh believes inconsistent quality, insufficient branding, and volatile prices are all exacerbating the Vietnamese rice industry’s struggles. In his opinion, many rice businesses lack the long-term export investment strategies required to expand their customer base and connect with processors. Experts are also worried Vietnamese rice export volumes will decline from 2014 as farmers are encouraged to shift to other crops of higher economic value. The Ministry of Agriculture and Rural Development (MARD) is planning to restructure rice cultivation in several provinces, increasing crop diversity and benefiting farmers. MARD Cultivation Department Deputy Head Pham Dong Quang said corn will be a key rice alternative thanks to high market demand and productivity. The plan is expected to be approved by the end of this year. A steep fall in Vietnamese rice exports will benefit VFA has recommended the Ministry of Industry and Trade broaden government-level trade promotion to support the negotiation and signing of larger contracts. It also urged the MARD to draft regulations governing rice stockpiling, thereby assisting farmers and stabilising market prices. Deputy Minister Anh said the industry’s future rests on restructuring production, developing reputable brands, boosting trade promotion, and exploring emerging markets. Other experts underlined the need to develop larger scale rice cultivation areas; strengthen links between farmers, scientists, authorities, and traders; and apply the advanced technologies capable of improving quality and efficiency. EU supports Vietnamese localities’ development An EU-funded project helping Vietnamese localities develop their economies was launched in The European Union (EU) has contributed 275,000 Euro to the two-year project, with another 150,000 Euro given by The Association of Cities of Vietnam (ACVN), in cooperation with KAS, will implement the project in a number of provinces and cities nationwide, including It is designed to assist urban authorities expand their administrative capacity and encourage poverty reduction by helping small businesses. Ambassador Dr. Franz Jessen, Head of the EU Delegation to “We hope the project will achieve its targets, deliver benefits to Vietnamese businesses, and offer the Vietnamese Government useful counsel,” he said. SOEs asked to report profits Deputy Prime Minister Vu Van Ninh asked ministries and ministerial-level agencies to direct State-owned groups and corporations to report their profits and dividends. State-owned groups and corporations are also required to report how much they receive from selling State capital shares during the equitisation process. By the end of July, the country restructured 5,914 SOEs, equitised 3,990 businesses and converted 1,924 businesses into one-member limited companies. Several big State-owned groups and corporations including Vietnam Airlines, Vietnamotor and Vinatex will soon hold initial public offerings (IPOs). Firms may buy more US cotton exporters met with their Vietnamese customers in Garments and textiles are a key export item, so the demand for cotton in The Viet Nam Cotton and Spinning Association Secretary General Nguyen Hong Giang said mutual understanding between the The US Staple Cotton Cooperative Association has launched a programme to support Vietnamese customers, according to Hank Reichle, a representative from the organisation that met on Wednesday with the Viet Nam Cotton and Spinning Association and the Viet Nam Textile and Apparel Association. PVF to delist next week after merger Shares of PetroVietnam Finance (PVF) will be delisted from the HCM City Stock Exchange on September 24 as part of its merger with Western Bank. A meeting late last week officially announced the establishment of a new bank after the merger - PVcomBank. However, worries over the future of the bank after consolidation have impacted the stock. PVF saw heavy sell-off this week, hitting the floor price for three consecutive sessions. An official of PVF, under conditions of anonymity, told the stock market information website cafef.vn that PVcomBank would meet the trading requirements of shareholders as expected and ensure maximum shareholder benefits. "As each party in the merger has particular strengths, PVcomBank as a large-scale credit institution [with approximately VND100 trillion (US$4.7 billion) in total assets and VND9 trillion ($424.5 million) in charter capital] will operate effectively," he said. He also revealed that his bank would manage to list shares again. "The share value of the bank will quickly restore sustainable growth," he said. "PVcomBank has full conditions for listing," he affirmed. "The managing board will decide when to go public on the basis of balancing the long-term development of the bank and benefits of shareholders." As the delisting is just a legal procedure, all the rights and interests of investors are secured by law. The payment of dividends and information disclosure will operate normally. After delisting, PVF shares will be traded on the over the counter (OTC) market. The HCM City Stock Exchange will have to choose another blue chip to fill in the list of the 30 largest shares tracked by the VN30. But it also means that PVF will be rejected from two exchange-traded funds. According to data on September 6, PVF shares accounted for 1.24 per cent of the total portfolio value of FTSE Vietnam. Additionally, in Market Vectors Vietnam ETF, updated as of September 12, shares of PVF held by the fund reached almost 14 million worth $3.35 million. — VNS In addition, securities firms will cut margin trading on PVF, creating large sell-offs. The losing streak of PVF shares will probably continue until the delisting. PVF closed yesterday's session at just VND4,900 ($0.2). With its focus on "Re-engineer Advertising," AdAsia 2013 will be a great opportunity to promote In 2009, two years after it joined the Asian Federation of Advertising Association (AFAA) as a member, Viet Nam Advertising Association won the bid to host AdAsia 2013 in More than 1,000 delegates from AFAA member countries and territories, world leading media and advertising corporations and representatives of trade promotion chambers from Asia and the world are expected to participate in the event, which is organised every two years in member countries. AdAsia 2013, with a budget of US$2 million, will attract more than 20 world renowned speakers including famous author David Allen Aaker; Don Peppers, founding partner of Peppers & Rogers Group; Edward Pank, managing director of Warc Asia; Nigel Hollis, vice executive president and chief global analysis of Millward Brown; and Rose Tsou, Yahoo's senior vice president, Asia-Pacific. VTV, VNPT team up for overseas package Viet Nam Television (VTV) and VNPT Global Joint Stock Company last week reached a strategic cooperation agreement to enable Vietnamese viewers worldwide to watch domestic television channels. This will be the first time a copyrighted Vietnamese TV channel package is distributed to Vietnamese communities around the world. The package includes channels on general news, movies, financial and economic information, entertainment, health and travel. Viewers can find on these channels latest and diverse news about the country. The two sides have plans to add more channels in the coming years. VTV and VNPT Global will resort to the Over the Top (OTT) broadcasting solution, which has become popular among users across the world. Using this solution, TV viewers can watch their favorite programmes using various devices such as set-top-box, Internet TV, laptops, smartphones and tablets. Mobile phone purchases continue to rise The latest quarterly report on the Vietnamese market from the International Data Corporation (IDC) showed that 5.8 million mobile phones were delivered in the country in the second quarter of 2013. Smart phone accounted for 32.7 per cent, two times higher than that in the same period last year. The IDC statistics showed the rapid development of the Windows Phone operating system, which stood at the second place with 15.3 per cent in Q2/2013. This operating system increased 119 per cent, from 5.7 per cent in Q2/2012. The Android operating system tops the Vietnamese market with 82.2 per cent, while Apple's iOS took the third spot with only 1.6 per cent. . VN e-commerce firm wins regional award Ngan Luong, a member company of pioneering Vietnamese e-commerce group, Peace Soft Solutions Corporation, seized the Red Herring 100 Asia award with its mobile payment solution MobiPay in MobiPay is the first service in The platform supports two payment methods. It allows customers to transfer money to sellers from bank cards linked with their mobile phone numbers; and also allows customers to swipe bank cards into a card reader attached to sellers' mobile phones. Sticking to copyright rules can help exports Compliance with copyright rules can help create competitive edges in export deals, according to the Viet Nam Competition Authority. It said that adherence to software ownership rules would, in the long run, be beneficial to businesses involved in global competition, market expansion, brand building and sustainable exports, particularly since A recent study indicates that a 1 per cent increase in the use of licensed software in Tarun Sawney, senior director, Antipiracy, Asia-Pacific, Software Alliance (BSA) said that using legal software provided low regulatory risks and protection from penalties found during audits and reviews. He said a new software product called Verafirm had been created by his organisation. He said it helped companies improve the control of their business while complying with Vietnamese and international laws and regulations. "Verafirm not only makes it easier for companies to keep tabs of their software assets, but helps them achieve better competitiveness by putting information technology to better use," he said. "Transparency and quality control in exports using digital technology have now become the norm for developed countries. Verafirm is a non-profit endeavour supported by major software publishers. Spain-Vietnam trade on the rise Two-way trade between Of the total, Vietnamese exports fetched EUR930 million, up 13%, and its imports increased nearly 18% to EUR122 million. Its key imports include chemicals, machinery, electrical equipment, aircraft, plastics, tanned hide, pharmaceuticals, and animal feed. Bilateral trade reached a record high of EUR2 billion in 2012, a year-on-year increase of 19.4%. Quang Ngai urged to attract more investment Prime Minister Nguyen Tan Dung has asked the central During the September 13 working session with key provincial leaders, Dung said that besides boosting industry, Quang Ngai should also advance the agricultural sector through increasing application of technology in production to enhance the productivity, quality and competitiveness of products. Noting that the ratio of poor households in Quang Ngai remains high at 17%, the PM urged the locality to pay more attention to poverty reduction measures, while focusing more on vocational training and human resources development to meet the labour requirements of local industrial parks. In addition, he asked the province to continue implementing the programme of building new-style rural areas, thus increasing local people’s income, while improving its investment environment, intensifying administrative reforms and ensuring social welfare. Dung also gave his opinions on the proposal to develop Ly Son island district and the construction of Tri Binh-Dung Quat road, a key transport project. Praising the efforts that the province has made over past years, the PM said its comprehensive achievements seen in all fields have made positive contributions to the socio-economic development of the whole country. It was reported at the working session that Quang Ngai's GDP in the January-June 2013 period rose 13.6% year on year, industrial production 27%, and earnings 40.43%. In the last months of this year, the province will continue easing business difficulties, improving its provincial competitiveness index (PCI), and creating a favourable environment for investors. Deputy PM Hai made the remarks at the reception for Jin Yong Cai, Executive Vice President and CEO of the IFC, a member of the World Bank Group, in He said that the IFC’s increased investment has been enjoying practical and effective results. Jin Yong Cai affirmed that IFC is always willing to support He also expressed his interest in the establishment of the Public-Private Partnership model in building infrastructure, and pledged to assist He stressed that IFC can not only act as an investor, but also call on other investors and companies to invest in Vietnam. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
↧
Article 21
↧