BUSINESS IN BRIEF 22/2 The catfish inspection programme stated in the The Vietnamese Foreign Ministry’s spokesperson Le Hai Binh made the statement on February 20 while answering reporters’ queries on “We fear that new regulations in the bill may exert negative impacts on According to the spokesperson, On February 4, the US Senate gave final congressional approval to a five-year farm bill, under which the inspection of catfish, including Vietnamese tra and basa fish, will be moved out of the remit of the Food and Drug Administration (FDA) and into the Department of Agriculture. Accordingly, Vietnamese catfish exporters trading with the Vinamilk eyes The Vietnam Dairy Products Joint Stock Company (Vinamilk) has announced the establishment of an affiliated subsidiary in On February 18, Vinamilk Board of Presidents approved a resolution to establish its subsidiary company and named CEO Mai Kieu Lien as its legal representative in In 2013, Vinamilk expanded its overseas operation through the opening of its subsidiaries in It also raised investment capital into Miraka Limited in In December 2013, Vinamilk invested US$7 million in the US-based Driftwood Dairy Holding Corporation to hold its 70% stake. Driftwood Dairy specialises in producing and supplying dairy products, fruit juices and fast food. Early this year, Vinamilk contributed 51% of a US$23 million project to build dairy products processing factory in RoK company builds mobile phone plant in Hoa Binh The northern mountain The wholly foreign invested project will be built at Luong Son industrial park (IP) at a total cost of US$20 million. The plant is scheduled to be operational in November 2014 to produce 120 million products a year. It expects to generate 600 jobs and contribute VND11 billion annually to the provincial budget. At the license hand-over ceremony, provincial authorities asked relevant agencies to create optimum conditions for the investor to carry out the project efficiently. They also asked the investor to speed up project construction, abide by Vietnamese law, and harmonise the interests between the investor, locality and workers. Hoa Binh, a gateway to capital Casino service legislation discussed The National Assembly’s Committee for Finance and State Budget (CFSB) on February 20 worked with Ba Ria-Vung Tau provincial leaders and Ho Tram Company on building a legal framework for casino services. On July 26, 2013, Ho Tram Company opened a casino at the Ho Tram Strip Complex in Xuyen Moc district, Ba Ria-Vung Tau, principally aimed at serving foreign tourists. Since then the Government, the Ministry of Finance (MoF) and the State Bank of Vietnam (SBV) have issued several decrees and regulations directed at regulating rewards-based games for foreigners. However, Ho Tram Company said the complex regulations have caused numerous difficulties for the company to run the service. Regulations related to destroying conventional money, required certifications provided to State agencies, along with minimum values and permitted bank transfers for foreigners are just a few of problems. Participants at the meeting also discussed allowing Vietnamese people to play at the casino as this will help collect taxes and avoid foreign currencies losses. CFSB Vice Chairman Dinh Trinh Hai said running casino services and allowing Vietnamese people to play the games is a sensitive issue that needs careful consideration. He said the committee will review and submit business proposals to relevant agencies to support the service. The Ho Tram Strip Tourism Complex was built on 165ha at a cost of US$4.23 billion by Canadian group ACDL. US$540 million has been invested in the project to build a luxury hotel, a convention hall, nine restaurants and an entertainment site for foreigners with 90 gambling tables and 1,000 electronic games. By the end of January, nearly 36,000 foreigners had played at the casino, generating more than US$5.5 million in turnover and contributing over US$2.8 million to the State budget. Australian Foreign Minister Julie Bishop announced the aid package following her February 19 meeting with Minister of Industry and Trade Vu Huy Hoang and Minister of Planning and Investment Bui Quang Vinh in These reforms will help According to Bishop, the success of The package is sourced from the Restructuring for a More Competitive Vietnam initiative that builds on the successes of the Beyond WTO Program. This program has provided over AUD9 million in Australian support to help Two-way trade between VASEP Secretary General Truong Dinh Hoe said his association worked closely with the VPSS and relevant Vietnamese agencies to address the issue. In 2008 Vietnamese Tra fish businesses were also banned from exporting their products to Seafood inspection teams from foreign countries regularly conduct examinations of Vietnamese seafood as a quality control measure prior to shipment abroad. The present situation results from solely isolated and limited failure of a small number of local exporters to meet requirements of the overseas markets. At present, VASEP statistics show last year Positive economic growth forecast in 2014 Economists predict the The National Financial Supervisory Committee (NFSC) also forecasts an overall increase in private consumption for 2014. According to official statistics, retail consumption of goods and services rose by 5.8% in January, or 0.2% higher than the growth a year earlier. NFSC economists also predict total social investment capital may reach 30% of GDP as a result of the expanded credit capacity and other benefits flowing from the restructuring of the banking system and banks getting non-performing loans off their books. Meanwhile, foreign investment is expected to show marked improvement thanks to positive prospects of the world economy and the signing of the Trans-Pacific Partnership (TPP) agreement due in 2015. However, targets for stabilising the macro-economy and monetary and fiscal policies must be managed diligently this year as business access to credit will continue to face limitations and all-in-all non-performing loans remain relatively high. The NFSC reports that although the number of newly-established businesses rose in 2013, the overall scale of business in terms of total assets, equity and turnover declined. In the first nine months of last year, total assets dropped by 5.2% against the same period a year earlier, average equity dipped 3.97% and average turnover rose modestly by 3.11%. Obtaining the set target of 5.8% economic growth for 2014 requires a conscientious and concerted effort from the whole society and business community, the report concludes. ILDEX Vietnam 2014 attracts businesses As many as 120 local and foreign businesses have registered to attend the fifth Livestock, Dairy, Meat Processing, Aquaculture, and Bio-Energy Exposition in ILDEX Vietnam 2014 features advanced technology and innovative solutions from International suppliers for It is considered a rendezvous of international businesses to showcase products and the state-of-the-art farming technology, and share livestock and aquaculture development orientations for Vietnamese businesses. The expo will see the participation of leading global companies in the field such as Big Dutchman, Biomin, Buhler, Muyang, Novus, Behn Meyer, Lohmann, Tierzucht, P&N and Asia Pacific. Workshops will be held to share experience in cattle breeding, dairy farming and processing, disease control, animal health, and aquaculture. ILDEX Vietnam, which takes place every two years, has attracted more than 170 companies and over 6,500 visitors each time. The professional event is expected to increase business opportunities for companies. Can Tho promotes business potential in Belgium A business delegation from the Mekong Delta city of The delegation, led by Vice Chairman of the Can Tho Municipal People’s Committee Vo Thanh Thong, held working sessions with representatives of the Vietnamese Embassy and the Belgian business community. Ambassador Pham Sanh Chau introduced Can Tho's potential to Belgian guests Ambassador Pham Sanh Chau highlighted investment opportunities in Can Tho and Meanwhile, Vice Chairman Thong accentuated Can Tho’s tourism potential, especially its ecology, gardens and rivers. “The city welcomes around 1.3 million tourists, nearly a half from foreign countries, annually”, he said. “Can Tho is considered an attractive investment destination thanks to its good infrastructure system and developed agricultural sector.”. “Can Tho has participated in many international trade fairs and exports a variety of farm products to overseas markets, including During their visit, Vietnamese delegates also worked with leaders of East Flanders province to inquire into the 2014 Accenta International Trade Fair in CEO of Belgium’s VK Group, Petor Van Kerckhove, chief investor of Amanoi resort in It is currently calling on Japanese businesses to invest in such prioritised areas as chemicals, mechanical engineering, food and foodstuff, and especially support industries, using high and environmentally friendly technology. The HCM City Export Processing and Industrial Zone Authority (Hepza) reports in 2013 Japanese capital topped the list of foreign investment in the city, accounting for 45% of the total US$363. Japanese businesses registering for operation expansion include Saigon Precision Ltd Company at Ling Trung Industrial Zone, and Nidec Tosok Ltd Company and Juki Ltd Company at Tan Thuan IZ. Hepza chairman Vu Van Hoa says Yasuzumi Hirotaka, Chief Representative from the Japan External Trade Organisation (JETRO), said Japanese businesses are tending to shift their investment from regional countries to This is a big opportunity for At regular dialogues, In September 2013, the city granted an investment licence to Vietnam-Japan Technique Ltd Company – a joint venture between Le Manh Ha, Vice Chairman of the municipal People’s Committee, says this is a new model to attract Japanese capital. The project meets the city’s demand for building a special high-tech park for Japanese businesses only. The first phase of the park valued at US$7.6 million will be completed in September. Experts say the new model will meet demand for receiving high quality investment resources from With its available advantages and incentives in place, Vietnam posts trade shortfall with Saudi Arabia Vietnam Customs statistics show bilateral trade hit US$1.71 billion last year, a year-on-year increase of 14.8%, of which Vietnamese exports were US$471.1 million, down 21.4%, and imports were US$1.239 billion, up 39.8%. A sharp fall in mobile phone handset and component export earnings (by US$184.3 million or 39% of the total export value) is the major contributing factor for the decline in exports to Products with high imported value from As a result, in 2013 Vietnamese exports to The Chris Brown, Director of the British Council, made the statement at a February 20 seminar in He affirmed social business is one of the British Council’s top priorities in its social development programme in Nguyen Dinh Cung, acting director of the Central Institute for Economic Management (CIEM), noted social business is one of sustainable economic models as it plays an important role in supporting the State in providing public services and dealing with social issues. “Social businesses can be financially self-sustainable without the capitalistic pursuit of profits and alternatively re-invest the profits in themselves with the aim of addressing social problems,” he said. “Thus, the State has a vested interest in ensuring policies are devised to further this economic model.” More than 200 social businesses are currently operating in 40 provinces and cities across Marie Magimay, Director of Finance and Corporate Resources, Social Enterprise By 2013, the At the seminar, The low CPI indicates people’s purchasing power has not picked up yet after the recent nine-day long lunar New Year holiday. Apart from food, other products showed an average price hike of less than 0.6%; and housing, electricity and water supplies, and building materials even saw price reductions compared to January. A fall in the price of gas prompted the prices of housing, electricity and water supplies, and building materials to nosedive 0.5% over the previous month. Healthcare, education and telecommunications services did not experience any price hike. On the contrary, food and food catering services increased 1.06%, with food up 0.83%, foodstuff up 1.03% and eating out up 1.23%. In February, gold prices soared 2.64% while USD prices dropped 0.01% compared to January. Japanese firms share job orientation with local students Representatives from Japanese enterprises provided an overview of their country’s development and talked about job orientation with students of the southern Ba Ria-Vung Tau province and the northern port city of At the events, they also discussed issues related to culture, foreign languages and professional skills with students of the Ba Ria-Vung Tau University and the provincial vocational training college. The seminars enabled the two institutes to better understand Japanese enterprises’ demand for suitable education and training plans in the future. At present, 120 students of the Ba Ria-Vung Tau University are pursuing Japanese studies. Meanwhile, the provincial vocational training college is offering training courses following Japanese standards. Vietnam-France trade hits EUR3.5 billion in 2013 Two-way trade between Of the total, Vietnamese exports fetched EUR2.79 billion, rising 4%, and its imports were valued at EUR704 million, up 14.7%. Major Vietnamese export items included electronic appliances (EUR956 million), garments (EUR323 million), footwear (EUR484 million), coffee and pepper (EUR86.2 million) and seafood (EUR76.9 million). Notably, export earnings of pharmaceutical ingredient tripled last year to EUR142,000 from just EUR36,000 a year earlier. Handicrafts exports generated only EUR5.9 million in value, but made up more than 10% of Pharmaceuticals topped the list of Vietnamese import items from Aviation equipment, mostly planes and satellite devices, are one of the main French exports to Chairman of the He said He assured his guests When investing in It has established relations with more than 100 cities around the world and has conducted many cooperative projects with the European Union. Approximately 2,727 FDI projects are currently operating in the city with combined investment capital of US$21.9 billion, predominantly in real estate, information and communications technology, processing industry, manufacturing, and entertainment services. Nineteen EU member states have invested in 290 projects worth US$2.61 billion. Top of the list is EU businesses’ turnover in 2012-2013 reached a phenomenal VND25.7 trillion and contributed nearly VND1.78 trillion to the State budget. Thao revealed With a wealth of experience in trade liberalisation and foreign direct investment (FDI) attraction, Hong Kong ( Hong Kong’s Minister of Justice Rimsky Yuen made the statement at a February 20 seminar in Rimsky said Participants at the seminar acknowledged Hong Kong is a gateway to They encouraged the Vietnamese business community to take advantage of the opportunity to fully tap into this market and expand to other markets. Trade relations between The seminar “Hong Kong- an international centre for legal and arbitrator services” was organised by the Vietnam Chamber of Commerce and Industry branch in It aims to create the best possible conditions for the two business communities to boost cooperation and accelerate investment in Viettel, FPT to provide cable TV services Having won approval from the Ministry of Information and Communications, the military-run telecom group Viettel is preparing to launch a cable television service in April while FPT Telecom will offer the service in August at the latest. A source from Viettel said that the enterprise has piloted the high-resolution cable TV service in Viettel is giving discounts to customers using its service during the trial period. After that, customers will have to pay for equipment and a monthly fee of VND85,000. Nguyen Van Khoa, director of FPT Telecom, told the Daily that the service would be launched one year after the date of licensing at the latest, or in August. Earlier, Viettel and FPT telecom pledged to pay fines if they fail to offer the service within one year from the date of approval. Viettel has committed to pay VND30 billion while FPT Telecom does not disclose a figure. Khoa declined to announce the estimated fees of its cable TV service. For Viettel, aside from the high-resolution package, it has also yet to disclose prices of the normal package. However, during an interview with the Daily before obtaining the license, Hoang Anh Xuan, general director of Viettel, said that it will offer a budget cable TV service for needy households in rural areas. The fees may be VND30,000-40,000 each month. Some experts predict that FPT Telecom will also have to offer reasonable fees to compete with other firms and attract customers when participating in the pay-TV market. In late 2013, many enterprises suggested the ministry set up floor prices for TV services to avoid undercutting. Currently, the satellite TV service of AVG is reported to have a fee of VND33,000. However, customers have to buy a set top box to use the service. Earlier, Viettel and FPT Telecom offered an Internet Protocol television service. However, Khoa of FPT Telecom said that the service requires huge investment from both service providers and users. Therefore, it is difficult to ensure suitable profits. Techcombank’s profit down 13.7% Techcombank has released partial business results in 2013 with its profit expected at VND878 billion, down 13.7% from the previous year. Techcombank said in a statement that provisions for bad debts had cut into its profit. In addition, the bank maintained cautious lending activities to ensure asset quality last year. In 2013, the lender focused on debt management and recovery and continued risk management. Its bad debt ratio stood at 3.65% at the end of last year. Techcombank obtained a modest credit growth rate of 2.95% in 2013 with total outstanding loan of over VND70.2 trillion. The loan-to-deposit ratio was 57.3%, a slump compared to previous years, while capital adequacy ratio (CAR) was 14.03% by late 2013. The bank reached out to nearly 3.3 million individual clients. Its total mobilization reached nearly VND120 trillion, up 7.6% against 2012. A source told the Daily that Techcombank has plans to keep selling bad debts to Vietnam Asset Management Company (VAMC) in the first half of 2014. Citi Vietnam appoints Dennis Hussey as CEO Citibank Hussey will be responsible for all the business of the two Citi branches in Hussey holds a Master of Business Administration in International Finance from Helsinki School of Economics in Over the last 18 years, Hussey has assumed a wide variety of role in both corporate, investment and consumer banking in more than 10 countries in Europe, North America and Hussey is no stranger to “I am delighted to have the opportunity to work in “For my part, I feel both excited and humbled that my appointment comes at a time when Citibank Workshop on maximizing Vietnam’s wind resources to be held in HCMC US and Vietnamese state officials and experts will meet at a Thursday workshop in HCMC to find ways to popularize and maximize wind resources in The workshop, jointly held by The US Consulate in The event, the first of its kind on wind power development co-organized by the two governments, will be joined by US speakers who will highlight ongoing projects in They are the experts who are working for the US Agency for International Development (USAID), US Export Import Bank and the US Trade and Development Agency (USTDA) Mr. Pham Trong Thuc, the Ministry of Industry and Trade’s Director of Renewable Energy, will be a keynote speaker from the The workshop will also feature industry experts in the field of wind development from both countries including senior speakers from GE and Black & Veatch, Mr. To Hoai Dan - chairman and CEO of Cong Ly Co – who will share his experience on wind farm development. Cong Ly Co has 10 wind turbines in operation in the southern Meanwhile, The event will also pull together over 20 developers interested in establishing wind farms in The event will close with a panel discussion on HCMC Chairman Le Hoang Quan, at a meeting with Japanese investors here last Friday, pledged to make stronger efforts to develop supporting industries so as to attract more Japanese manufacturing enterprises. Quan told the meeting that the city took heed to complaints from Japanese investors on the lack of local suppliers of components and accessories, and as such concrete steps are being taken to remedy the situation. More incentives are being offered for those enterprises engaged in supporting industries, said the city leader. The chairman noted that Japanese enterprises have also showed keen interest in supporting industries in the city, with many having put their names down in such sectors. The “This zone will be developed next week inside The entire zone when fully in place will cover 100 hectares, and “the city government will create all favorable conditions for Japanese investors,” he said. In addition, the city government will work with the Ministry of Transport on the opening of more air services from more Japanese cities to HCMC, according to Quan. He added that high-quality human resources for Japanese investors would also be attended to. Hirotaka Yasuzumi, managing director of the HCMC Office of Japan External Trade Organization (JETRO), said at the meeting that the inadequate development of supporting industries posed a huge challenge for Japanese investors. Local supplies for Japanese companies in Yasuzumi complained about the lack of information about suppliers of components and accessories in Japanese enterprises operating in The JETRO official stressed that the city needed to have incentives encouraging local enterprises to invest in supporting industries, instead of relying on foreign investors. It is important that the city has its own enterprises in supporting industries so that Japanese investors can cut costs when partnering with local suppliers, he said. Singapore’s RHTLaw enters Vietnam Singaporean law firm RHTLaw Taylor Wessing has established a joint venture with PBC Partners in The firm announced February 18 that it had signed an exclusive agreement with Vietnamese law firm PBC Partners, which operates in both With the addition of PBC, RHTLaw can offer clients access to more than 950 legal professionals across 23 offices in Asia, the Middle East and The new joint venture came four months after RHTLaw announced a cooperation agreement with Indonesian law firm Hanafiah Ponggawa and Partners. Tough time for Vietnamese firms in foreign investments Several Vietnamese state-owned companies operating in oil and gas, electricity, minerals and telecom have suffered losses investing in foreign countries. Some have been forced to halt operation completely or file for bankruptcy, losing billions of USD in foreign investments. Phung Dinh Thuc, Chairman of the state-owned Vietnam National Oil and Gas Group (PetroVietnam) admitted at during a review meeting late last year that the group failed at its Venezuelan project. According to him, PetroVietnam has put a stop to an USD8-billion Junin 2 oil field project in the country three years after signing a joint venture contract. This decision was made as a result of an extremely high inflation rate exaggerating inflation rate of 57%. “With such a gloomy economic situation, no investors dared to start new investments or maintain their current projects,” Thuc commented. This was a difficult decision for PetroVietnam, as the Junin 2 project, located in Orinoco Belt, consists of large deposits of extra heavy crude, which has an estimated output of 1,400 billion barrels of oil. It was also The two sides are currently negotiating the handover of the project and they may renew their cooperation upon the return of economic stability. PetroVietnam was also compelled to put an end to six oil and gas projects in other foreign countries which were devoid of profits. The state-owned Vietnam National Coal-Mineral Industries Group (Vinacomin) invested in five projects in After their studies, they were disappointed to find that the mineral potential at three other projects were much lower than their initial estimates and were not suitable for large-scale development. Due to fierce competition, and unfamiliar with economic and political policies in foreign countries, some major Vietnamese investors have encountered insurmountable challenges when investing abroad. Even though Vietnam Military Telecommunications Group (Viettel) has succeeded in investing in seven foreign markets, the group failed in their Hoang Quoc Dung, Vice Chairman of Binh Dinh provincial People’s Committee said last December that several local companies have gone bankrupted after using their assets as collateral to secure loans in order to invest in Cambodian rubber plantations. An anonymous investor in the field said a hectare of rubber trees can produce two million tonnes of latex per year and bring about an annual revenue of VND2.5 trillion (USD118.28 million), not including the sale of trees. The market is also very risky, however, depending on volatile prices. Many economists warn that domestic firms should be careful to take proper account of the risks before jumping into such large-scale investment projects. Opportunities attract exhibitors to 2nd Mining Vietnam Following the successful inaugural event in 2012, the 2nd International Mining and Minerals Recovery Exhibition and Conference (Mining Vietnam 2014) will be held from March 11-13 at the International Centre for Exhibition in According to the Vietnam Business Forum, as a recognised industry event, Mining Vietnam receives strong support from local authorities, investors, equipment manufacturers and distributors, service providers, technological trade promotion agencies, and companies in Up to 80 percent of participating companies in 2012 will return to the 2014 event with bigger space to showcase their equipment and machinery. To date, there have been provisional country pavilion space allocations to According to industry experts, this exhibition will be more active than the 2012 event because of bigger participation from neighbouring countries with a lot of joyful activities. BT Tee, Deputy Chief Representative of Allworld Exhibitions in He said first movers with far visions will take advantage of trade activities to learn about technology, equipment and service providers to meet their production needs and update industry development trend and knowledge. Mining Vietnam 2014 will return with better industry outreach and marketing campaigns to reinforce its position as the technology sourcing and industry networking platform for Specially, the event opens when a lot of projects are ongoing. This dynamism is the premise and motivation for foreign investors and suppliers to choose Vietnam Mining to advertise their products to potential buyers. At Mining Vietnam 2014, the Australian Trade Commission will update latest mining technologies and equipment in Besides, the fair is incorporated with connecting programmes and national conferences aimed to introduce investment opportunities and projects to interested entities. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
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