BUSINESS IN BRIEF 15/8 Former WTO Director General Pascal Lamy called for Speaking at a dialogue with the Vietnamese business community in However, patterns of trade in the world have changed rapidly, requiring countries to focus on competitive advantages. Like many countries, Trade agreements should place an emphasis on removing trade barriers and seeking to protect the legitimate interests of consumers, Lamy stressed. Vietnamese enterprises need to realize that their products have to meet stricter technical and safety criteria in the context of global trade, even in the lower-end market segment. Improving the quality of products will enable countries such as Lamy suggested Lamy also encouraged heavy investments in technology to help Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said the protection of customers’ interests is of prime significance to Matters related to protecting jobs and businesses are certainly addressed during negotiations as they significantly affect the economic landscape. But ultimately, they should be balanced against the interests of consumers, Loc said. Lamy urged International coffee chain to open in HCM City South Korean coffee chain Caffe Bene will enter the local market with the opening of its first coffee house in Caffe Bene Viet Caffe Bene (bene means good in Italian), was established in the Sacombank ties up deal to co-operate with Viettel Sacombank and Viettel corporation will boost co-operation under an agreement signed on Tuesday. Sacombank will offer Viettel and its staff preferential loan packages, provide the company's business partners with payment services via mobile phones, in addition to sponsoring the firm's agents and installing point-of-sale machines at its stores. The company will supply post, dispatch, telecommunications and air ticket services to the bank. It will also give the bank solutions to implement information technology projects. "As the largest telecommunications and information technology group in FPT begins construction of green office complex FPT City Joint Stock Company under the FPT Corporation started construction of the FPT complex in Ngu Hanh Son District, in central coastal The 5.9-hectare complex, which will draw on investment of VND485 billion (US$23 million) for the first stage, will provide office space for 10,000 employees, and help the sustainable development of FPT Software and FPT University in Da Nang City by 2015. The project has been recognised as an environmentally friendly and energy-saving complex by the Ministry of Construction. The six-storey building will have a 1,500-litre solar-power heater system and a solar power generator with a daily capacity of 12KWh daily. FPT Da Nang revenues reached VND1.85 trillion ($88 million) last year. While many areas of The Vietnamese Beekeepers Association reported that in the first seven months of this year, the country shipped more than 27,000 tonnes of honey to 14 countries and territories. Up to 95 percent of that amount, or more than 25,000 tonnes, went to the Vietnamese honey has also found its way into the strict Australian market, itself an exporter of honey. The product also finally regained permission to return to the EU last year after a six year suspension. With more than 1.5 million bee colonies as of the end of 2013, Investment firm makes divestment profit Red River Holding, an investment fund in Viet Nam launched by Artemis of French billionaire Francois-Henri Pinault, completed four large capital withdrawals in only six months this year, earning more than VND1 trillion (US$47.4 million). On Monday, the fund sold 6 million shares out of its total 7 million shares held in taxi operator Vinasun (VNS), the biggest taxi company in After the deal, its stake reduced from 10.6 per cent to just 1.78 per cent. Earlier, the fund sold all of its 3 million shares in Tien Phong Plastic Company (NTP) in January and in June, transferring nearly 10 million shares of Vicostone Company (VCS), an engineered stones manufacturer, to four domestic investors. The shrinking presence of Red River Holding in According to cafef.vn, the fund sold more than 9 million HPG shares in the last three months worth an estimated VND450-500 billion ($21.3-23.7 million). The total capital raised from these four share sales reached approximately VND1 trillion. Despite this, the value of the fund's portfolio remains significant at around VND4 trillion ($189.6 million), with a focus on big listed companies including FPT Corporation (FPT), Hoa Sen Group (HSG), Hoa Phat Group (HPG), Minh Phu Seafood Corporation (MPC) and Vinh Hoan Corporation (VHC). Ministry reports increase in exports to US The Ministry of Industry and Trade reported that over the past seven months the country's total exports to the market rose to $16 billion, a yearly growth of 24 per cent. Textiles and garments and footwear remained items that showed significant increases during that period. Earlier, the Vietnam Economic Times, quoting the American Chamber of Commerce in Exports of Vietnamese textiles and apparel to the At present, Automobile imports on the rise The General Statistics Office (GSO) reported an increase of 59.8 per cent to 31,000 units in imports of Completely Built-Up (CBU) automobiles to the local market. The figure also represents a 78.4 per cent rise in turnover to US$667 million during the first seven months compared to the same period last year. July turnover was the highest figure since last year with a value of $122 million, up 122 per cent. The luxury automobile market grew by 30 per cent during the first six months of this year compared with the same period last year. Major players in the market included BMW and Audi. The latter imported 50 per cent more cars in the first half of 2014 than in the first half of 2013, according to General Director Laurent Genet. Automobile companies said that the increase in CBU car imports was created by a slight demand increase in the general automobile market, the stability of domestic economy, easier access to low-interest loans for consumers and the gradual trend of people changing from motorbike to automobile travel. "The State Bank of Viet Nam's recent 50 basis point cut to its benchmark refinancing rate to 6.5 per cent will help ease credit and make it more conducive for consumers to take on financing to purchase new cars," said Genet. The Government cut registration fees to 10 per cent in major cities including Ha Noi, Increasing demand for CBU automobiles from a number of "emerging" wealthy customers also contributed to the improvement of the market, said the director of Audi More input needed to draft new law on legal documents Representatives from small-and-medium enterprises (SMEs) and experts met in Ha Noi yesterday to discuss the role of enterprises in the Law on Promulgation of Legal Documents. The conference was organised by the Viet Nam Chamber of Commerce and Industry (VCCI), Ministry of Justice, and the Public Participation and Accountability Facilitation Fund. A survey of the chamber shows that most SMEs learned of the new laws through internet and television. About 60 per cent of enterprises knew about the laws after they had been released and put into effect, while less than 20 per cent knew about the first and draft stages. More than 80 per cent of SMEs said they were not asked for opinions by state-owned organisations. Dau Anh Tuan, head of the VCCI legislation board, said that the State should utilise internet and television for propaganda; focus on propaganda before enforcing laws, and pay more attention to SMEs. Tuan said that for transparency in the building and enforcing law period, the State should create opportunities for enterprises and citizens to contribute ideas on procedures from draft to enforcement stages. Vu Xuan Tien from the Viet Nam Association of Corporate Directors, said that the nation's law system was being built on the principle of outline law, which consisted of many provisions, but lacked specific and practical ones. He said the law contents were not enough to lay the foundation for specific regulations and implementation. The lack of specific and practical laws made the legal system unclear and decreased the confidence of citizens and enterprises in State laws, he added. Tien also suggested draft boards should collect opinions and post explanations on Government websites to inform citizens and enterprises. Mai Dinh Manh, general secretary of the Nguyen Kim Dung from The draft of the Law on Promulgation of Legal Documents was released on August 5. It aims to lay a complete and unified foundation for law-making activities. Clean cashew nut material area to be built in Dong Nai Food processor Donafoods in southern Dong Nai province had worked with General Director of the Dong Nai Import-Export Processing Agricultural Products and Food Company Nguyen Thai Hoc said Donafoods and Target will jointly make a fact-finding trip to cashew-growing areas in Xuan Loc and Dinh Quan districts and directly work with cashew growers in September. Target will give advices on organic farming to local farmers, thus creating high-quality products meeting regulations on food safety, Hoc said. To ensure a stable material area for the cashew nut processing industry, the provincial People’s Committee has approved a Donafoods-proposed project with the aim of re-organising cashew nut production and supporting local farmers in the field. The project targets a 9,500 ha high-quality material area in the districts of Xuan Loc, Dinh Quan and Trang Bom. Hoc said cashew nut is considered the province’s hard currency earner as its export markets have been expanded in recent times. Cashew nuts are mainly exported to the In the first seven months of this year, Dong Nai shipped abroad about 12,500 tonnes of cashew nuts, raking in about US$98.6 million, up 22.5% in volume and 30.6% in value from the previous year. Vietnamese handicrafts woo Thai customers Vietnamese handicrafts imported by a Thai company have attracted the attention of foreign visitors at a recent international handicraft exhibition held in The event drew nearly 300 Thai handicraft businesses, dozens of nations in the Asia-Pacific region, opening up opportunities to strengthen trade exchange of handicraft products between Prangtip Chanthanamuk said that her pavilion displayed ancient merchant vessel models which are imported from “Over the past days, these intricately designed models have received a lot of interest from visitors expecting to own such a vessel which is a symbol of prosperity and wealth. The prices of these ships are not very expensive,” she said. Other customers are keen on these products as they simply are very beautiful. Proposed draft law permits 21-year-olds to gamble Vietnamese citizens at least 21 years old may become eligible to gamble at casinos in The proposal is considered the most important change in legislation allowing Vietnamese people to enter casinos for gambling. Under the MoF’s previous draft, only foreigners and Vietnamese holding foreign passports and residing overseas, are permitted to gamble at casinos. The new draft also stipulates that the casino investor must have at least five years of experience in casino business (instead of ten years in the last draft). It also requires casino investors to have registered capital of at least US$4 million to obtain a licence. For each sum of US$20 million of investment capital, the investor may buy and operate one table and ten machines. An increase in numbers of machines is dependent on the casino’s total increased investment capital. At present, seven businesses have been granted licenses to operate casinos in Bank credit up 3.68 percent in seven months Deposits in banks increased 6.98 percent, with dong deposits rising 7.92 percent and deposits in foreign currencies up 1.31 percent, the central bank said in a recent press release. The central bank continued asking credit organisations to lower their lending interest rates, including for old loans. Average deposit and lending interest rates in dong were cut by between 0.5 and 1.5 percent a year compared to last year’s end. Banks have moved to lower lending interests for old loans, the central bank said. Outstanding loans in dong with lending interest rates of over 15 percent and 13 percent had by July 24 accounted for 4.5 percent and 12.9 percent, respectively, of the total amount. On the foreign exchange market, the VND/USD inter-bank exchange rate was adjusted to increase by 1 percent as of June 19 after remaining intact for a year. One USD is now equivalent to 21,200-21,250 VND at commercial banks. In the remaining months of this year, the central bank continues a proactive monetary policy to keep inflation under control and stabilise the macro-economy, while flexibly managing interest and foreign exchange rates in line with macroeconomic developments. In 2014, The first phase of PetroVietnam’s biggest project yet, Nam Con Son 2 Gas Pipeline in Ba Ria-Vung Tau province, is set to come on-line by mid next year, the Vietnam Investment Review (VIR) reported. The pipeline, invested in by PV Gas – a subsidiary of state-run PetroVietnam – consists of two parts, offshore and onshore. The first phase is a 151km underwater route from Thien Ung platform to Bach Ho oil field. This phase is expected to finish by June 2015. The second phase, to be undertaken later, is a pipeline from Bach Ho oil field to onshore Phu My gas processing plant. The Nam Con Son 2 pipeline is planned to play an important role in collecting gas from the Hai Thach, Moc Tinh, and Thien Ung-Mang Cau fields of the Nam Con Son basin and transport it onto land for consumers in the southern region. The estimated cost for the entire project is 1.3 billion USD. The price tag for the first phase is 402 million USD. The project got a 280 million USD loan from a foreign bank consortium led by Cathay United Bank in July. According to CEO of PetroVietnam Do Van Hau, the Nam Con Son 2 Gas Pipeline Project is the group’s most challenging and largest project to date, requiring close and urgent cooperation among member companies. The pipeline has been listed as a national priority for oil and gas development, and is expected to advance the infrastructure of The first Nam Con Son Pipeline project was put into operation in 2003 via a contract between PetroVietnam, Rosnef and ConocoPhillips. The pipeline is transporting gas and condensate from Lan Tay and Lan Do oil fields to the Dinh Co Terminal and further on to the Phu My Power Complex (gas) and Thi Vai Terminal (condensate). The system includes a pipeline (339km offshore and onshore), the Dinh Co Gas Processing Terminal and a metering station at the Phu My Power Complex in Ba Ria-Vung Tau province. In 2013, after 10 years of safe and reliable operations, it celebrated the delivery of its 50 billionth cubic metre of gas and 2.6 millionth cubic metre of condensate. Fibre plant provides key textile inputs The Dinh Vu Polyester Fibre Plant exported nearly 5,500 tonnes of products to the European market in its first three months of operation, according to the Ministry of Industry and Trade. The plant has so far produced 15,500 tonnes of products, more than 8,600 tonnes of which were sold. Product quality has been tested and is equal to that of Thai, Taiwanese and Chinese products. Covering 15 ha in Dinh Vu Industrial Park in the northern port city of The investor, Petrochemical and Textile Fibre Joint Stock Company (PVTEX), used modern technology from The plant will supply about 40 percent of the materials needed for PVTEX is also constructing the 6.8 million USD Phu Bai Fibre Plant in the same area. Deputy Minister of Industry and Trade Do Thang Hai said that This was being done to add value to textile and garment products and take advantage of export opportunities after signing trade agreements, such as the Trans-Pacific Partnership Agreement and Vietnam-EU Free Trade Agreement. Domestic fibre supply has also increased in recent years because local enterprises have expanded production to improve the competitiveness of garment products. The Vietnam Textile and Apparel Association (Vitas) announced that domestic enterprises had many large projects to expand fibre production so local garment manufacturers could reduce imports. Vitas noted that the increase in local fibre products had even led to exports, pointing out that exports of material and sub-material products, including fibre, increased to 2 billion USD last year. Forestry ODA projects effectively implemented in Central Highlands A project on forestry development for livelihood improvement in the Central Highlands has contributed to bettering forest protection and improving living standards in regional provinces, according to the Central Highlands Steering Committee. The project “Forests for Livelihood Improvement in the Central Highlands” (FLITCH) has total investment of over 91.26 million USD co-funded by the Asian Development Bank (ADB) and the Trust Funds for Forest (TFF). It has been carried out between 2007 and 2015 in 97 communes in the five regional provinces namely Kon Tum, Gia Lai, Dak Lak, Dak Nong and Lam Dong, and neighbouring Phu Yen province. Its objectives are to reduce the poverty rate and narrow the income gap among local households, as well as enhance the management and use of forest land and bio-diversity conservation. Under the project, so far, nearly 25,000 out of 44,000 ha of forest have been planted, fulfilling 55 percent of the target, while nearly 60,000 ha have been protected. The project has also provided jobs and increased incomes for more than 33,000 local households. According to the ADB review mission, the project has basically accomplished its objectives and met the aspirations of the regional localities. In addition, other ODA projects on forest development and protection are underway in the region, including those funded by The Ministry of Agriculture and Rural Development is completing necessary procedures for the approval of the Ecosystem Projection and Integrated Management Project funded by the German Reconstruciton Bank (KFW). The 15 million USD project will be implemented in Gia Lai, Kon Tum and Quang Over 95% of enterprises use e-customs As of late July, around 49,200 enterprises applied e-customs, accounting for 95.84% of the total number of those involving in import-export activities, according to the Viet Nam Customs. So far, all customs departments in 34 cities and provinces provided e-customs. Meanwhile, 148 branches out of 170 (or 87.05%) processed e-customs. The number of import-export declarations going through e-customs procedures amounted to 5.23 million, representing 93.14% of the total . Trade turnover conducted through e-customs valued around US$ 239 billion, making up 95.3% of the total figure. Statistics showed that 60.4% of enterprises passed customs clearance without further examination requested; while 10.2% was asked to undergo additional check. The e-customs system runs automatically round the clock, including Saturday and Sunday. The reception time takes enterprises from 1-3 seconds; customs clearance 1-2 minutes. Experts: Link with global giants to better compete Economists claim that Vietnamese companies need to boost competitiveness through increasing engagement with global giants. Director of the Vietnam Institute of Economics Tran Dinh Thien suggested finding and establishing strategic relations with global business giants would be crucial to boosting the country’s competitiveness. “In today’s business landscape, production is often based on global value chains. Each chain has the engagement of one or several global groups which are decisive to lure other companies,” said Thien, adding that, to join the global value chain Vietnam would need to woo multinationals to the country and foster their co-operation with local firms. A case in point is when Later on, many other global technology players followed in Intel’s wake, such as Samsung, Nokia and LG. For example, Korean tech titan Samsung has pumped over $6.85 billion into “Treating such big groups the same as small and medium-sized companies is not the right approach,” said Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises. “These business giants often have long-term investment and business plans. We can appeal to these firms once we have good policies in place that match their development visions,” said Mai. With a wealth of experience in foreign direct investment (FDI), Mai stressed the need to have a long-term strategy to attract FDI. “It would be greatly beneficial to the economy if in each business sector of our development priority plan, such as in electronics or petro-chemistry, for example, we could attract one global giant, helping to build a backbone for the economy and boost local firms’ engagement in the global value chain,” Mai noted. Mai cited one recent case where “We need to go that way to charm global players,” Mai said. Thien from the Vietnam Institute of Economics, however, thought ‘that was not enough’ and stressed the importance of having attractive and breakthrough mechanisms to attract global giants acting as national strategic partners to the country, not simply offering preferential taxes. SBV limits non-VND term deposits to local citizens In an effort to tighten management on foreign currency, on August 1 the State Bank of Under the circular, effective from September 15, 2014, only Vietnamese citizens can transfer foreign currency from their current accounts into term deposit accounts in foreign currency. Residents and non-residents of foreign citizenships and institutional residents of We think that these regulations, in the context of low USD deposit rates caps, which are even lower for demand accounts, will encourage entities to sell foreign currency to the authorities, which will enhance Decree 70 dated July 17, 2014 instructing the implementation of the Ordinance on foreign currency, effective from September 5, 2014, replacing Decree 160/2006, stipulates that among individuals, only Vietnamese citizens are allowed to deposit their foreign currency in cash on savings accounts, and then to withdraw the principal and interest in the deposited currency. Before that, Decree 160 allowed all individual residents to carry out savings deposits in cash. In Decree 160, all resident and non-resident institutions were able to collect foreign currency in cash into their current account in foreign currency. It is no longer allowed by the new regulations. The new circular stipulates that institutions can only receive banking transfers, except for some special cases. It also stipulates that foreign currency in cash is allowed, applicable to only foreign individuals, residents or non-residents, to be handed into current accounts in foreign currency if brought from overseas and supported with customs papers, or earned from lawful income sources. The new circular does allow residents who are foreign individuals and non-residents to transfer their foreign currencies on account out-bound. Vietnamese citizens are not allowed to do so. But, as regulated in Decree 70, they may purchase, transfer or carry foreign currencies abroad via licensed credit institutions for the purposes of study or medical treatment in foreign countries, working trips, tours or visits, payment of charges or fees, provision of subsidies for their relatives, transfer of inherited money to their heirs and one-way money transfer in case of permanent residence. Regarding domestic foreign currency banking transfers, all residents and non-residents are allowed to make transfers of payments for permitted transactions within Regarding the use of VND current accounts, the circular did not mention that non-residents and foreign individual residents are allowed to transfer their VND currency into term deposits, but stipulated that they can use VND to buy foreign currency to transfer abroad. This regulation aims to mitigate carry-trade activities as VND deposit rates are now significantly higher than deposit rates of some foreign currencies abroad, especially while the government maintains stable foreign exchange rates. With this circular and Circular 05/2014 dated March 12, 2014, foreign currency will be better managed by authorities. More importantly, it will reduce the flexibility of speculative capital in foreign currency to seek higher profits as they are not allowed to allocate to term and savings deposits at banks to enjoy higher interest rates than the demand rate. Signs point to M&A explosion The merger and acquisition (M&A) wave is expected to begin with efforts to equitise state-owned enterprises (SOEs) and reduce state holdings in a raft of corporations. This idea was proliferated by Nguyen Van Hieu, Deputy Minister of Planning and Investment. Hieu told the M&A Vietnam 2014 forum, co-organised by VIR and AVM Vietnam last week in Last year M&A deals reached $5 billion, versus the $1 billion reported five years ago. “They have proven to be highly attractive to investors at home and abroad,” Hieu said. The sixth annual forum attracted more than 400 participants, and its ultimate aim was to deliver forecasts and projections for the M&A market over the next five years, a period during which Vietnam plans to greatly step up its regulatory reform and economic restructuring with the restructuring of public investment, SOEs and the financial and banking system as cornerstones. For the equitisation process, the first seven months of the year saw 348 out of a total 432 SOEs prepare to go public in the 2014-2015 period by establishing equitisation steering boards. 247 of these enterprises are now in the process of valuating their business, 88 have completed their valuation, and 55 have received approval for their equitisation plans, according to a report just released by the Steering Committee for Enterprise Reform and Development. Of the aforementioned SOEs, 32 have held IPOs via one of the country’s two exchanges, the remainder floated their shares at their own premises or at those of securities firms. Given the speed, the committee projected that a total 200 SOEs would undergo equitisation this year, and the rest would be completed next year. At the same time, the first seven months of this year saw almost VND3 trillion ($141.54 million) worth of equities of non-core businesses sold by major SOEs. The specific amounts divested were VND137 billion ($6.46 million) from securities firms, roughly VND2 trillion ($94.36 million) from finance companies and banks, VND150 billion ($7.08 million) from insurers, VIND104 billion ($4.91 million) from realty firms, and VND686 billion ($32.38 million) from other businesses unnecessary for the state to hold an interest in. In terms of specific companies’ divestitures, the Vietnam National Coal-Mineral Industries Holding Corp. (Vinacomin) sold over VND1.4 trillion ($66.32 million) in non-core securities, the State Capital Investment Corp. (SCIC) sold VND475 billion ($22.42 million), the Vietnam Rubber Group (VRG) sold VND357 billion ($16.85 million), the Vietnam Posts and Telecommunications Group (VNPT) offloaded VND151 billion ($7.12 million) and Vietnam Northern Food Corp. (Vinafood1) got rid of VND120 billion ($5.66 million). A VinaCapital estimation showed that 11 major IPOs alone can bring the state proceeds of up to $1 billion. Still, M&A supply could use a further boost by lifting the foreign ownership cap of local firms. From the “supply side”, John Ditty, senior partner of KPMG Vietnam and Meanwhile, Marc Townsend, managing director of CBRE Vietnam noted that funds are continuing to dispose of their assets, but are also interested in acquiring well-priced assets, and that many building still “sit empty and unloved”. From the demand side, many local and foreign companies are fighting to maintain their growth by diversifying their businesses, products and markets, and M&A is seen as a quick and effective way for them to achieve their goals. Also, reportedly many financial investors are looking to get involved in companies and industries with high growth potential as strategic investors, not just shareholders on the market. What will push the second wave of M&A is Many foreign investors also want to cash in on opportunities expected to come from the signing of the Trans-Pacific Partnership (TPP) and the Vietnam-EU FTA. The TPP is planned to increase Andy Ho, managing director and chief investment officer of VinaCapital said foreign interest in So far this year the VN-Index is up 18 per cent with daily turnover having increased by 58 per cent against the same period last year. The index is showing signs of a continued rebound after two very challenging years. Since 2010, there have been 69 M&A transactions between There are still some hurdles that need to be overcome to see both sides happy. Yoshida said, “Vietnamese companies provide deal information to multiple advisors at the same time in order to make the transaction possible, while the Japanese want reliable deal information.” He added that Japanese investors prefered large deals and majority stakes, which local firms did not usually offer. Vietnamese companies want judgment and commitment from potential investors, but the accuracy and quantity of information is often lacking. For local firms, changes to the agreements are commonplace, which the Japanese do not do. Vietnamese companies also expect high prices, which are not supported by their valuations. Yoshida said Vietnamese companies needed to be patient and should not approach the same Japanese investors through multiple advisors and urged that they provide precise information at the beginning and hire a qualified financial advisor who understands the difference in business styles and customs between the two sides. “Most particularly, they need to realise that price isn’t everything in an M&A deal.” The advice for Japanese investors is to understand thoroughly that they are accessing a growing market outside their home country, and a reasonable premium on the price is acceptable. Also, they should not wait around for all the information, and should make earlier decisions based on what they have available. Andy advised SOEs to have their consolidated financial reports prepared, audited and issued before an IPO. Only through such a release of full and accurate information can the true value of an SOE be verified and justified to the market, and only through transparency can investors feel confident that an SOE’s operation is aimed at benefiting the shareholders. Villa, townhouse segment warms Although the townhouse and villa segment of the In a recent move, New House Trading Company announced that it was selling villas for a relatively low price range of VND1.4 billion to VND1.6 billion ($66,600 to $76,200). Furthermore, the developer offered a VND200 million ($9,500) discount. Viglacera Land also just put on sale villas and semi-detached houses at its Lam Vien project, a part of the existing Dang Xa 2 urban township, located in Long Bien district along the According to Le Ngoc Quynh, director of Nha Dat 24 Transaction Centre, the absorption of villas and landed houses has increased recently, particularly in projects near completion and in close proximity to the city centre. Apart from that, many investors are now in the hunt for depressed products that offer speculation opportunity. According to Cheong Ho Kuan, general director of Cheong said he saw an uptrend in property transactions, particularly in terms of high-quality products at affordable prices, in both landed and apartment segments in the first half of this year. “End-buyers know to put their capital into quality products from credible, committed developers that showcase continued growth and offer expected facilities and amenities,” Cheong said, adding that this uptrend would likely continue through the second half of the year. The first phase of According to Phan Xuan Can, chairman of SohoVietnam, the demand for villas and landed houses in projects with complete infrastructure is still high, though supply is limited. At Sudico Real Estate Transaction Centre, which is selling landed houses in Nam An Khanh project, near Thang Long boulevard, in order to successfully buy a villa in a good location in the project, customers normally have to pay a commission of VND1 billion ($47,600) to the speculators who own the property. According to Savills The The highest price was in Tay Ho district near Meanwhile, prices increased slightly, between 1 and 6 per cent, in a number of districts including Cau Giay, Tu Liem, Ha Dong, and Hoai Duc. According to Ngo Thi Huong Giang, senior manager of research and consultancy at Savills, villas and townhouses face competition from private, landed houses and apartments that are selling faster, as they cost less. Giang said that as of June a joint circular was issued to guide mortgage procedures for future homes, which may increase the market demand in the coming time. In the first half of the year approximately 1,900 units were sold, up 54 per cent on-quarter thanks to strong sales in Grade B projects. The absorption rate was 14 per cent, increasing 5 percentage points on-quarter. “Projects that are progressing smoothly and have strong developer credibility generated good sales this quarter. Most buyers are end-users who expect real products,” Giang said. By the end of 2014, Vietnam has led the Southeast Asia in wood exports and been listed in the world’s top ten exporters after 15 years, when the country’s export turnover was barely tens of millions of US dollar per year compared to billions of US dollar in Indonesia, Malaysia and Thailand. Mr. Nguyen Chien Thang, former chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), said that The wood processing industry has high labor productivity with each worker creating US$18,300 per year. It is $13,900 in footwear, $8,900 in seafood and $7,100 in garment and textile. Development of the wood processing industry has boosted support industries like wood glue, colored oil, metal materials, dunnage and sandpaper with annual turnover exceeding $1.7 billion. Import materials account for 30 percent. According to the Vietnam Chamber of Commerce and Industry, wood processing is one of ten industries bringing highest export turnover and significantly contributing in the country’s Gross Domestic Product. Its potential is a very large with international competitiveness and diversified market, according to a World Bank’s report on In 2013, the world consumed US$400 billion wood products. The HCMC Handicraft and Wood Industry Association (HAWA) chairman Nguyen Quoc Khanh said that If the domestic market is well exploited, domestic turnover might reach $2 billion a year. Hawa has sent a proposal to Prime Minister Nguyen Tan Dung to make wood processing to be one of key economic industries and map out development policies in this field, targeting at US$20 billion annual export turnover. Support industries for the wood processing should be looked into and afforestation should be stepped up to reduce import of raw wood, according to the proposal. Opening markets disadvantage Vietnamese firms Several experts have expressed worries that Vietnamese goods may lose their standing in the domestic market after a Thai group bought Metro Vietnam for nearly USD900 million. Metro AG agreed to sell all 19 of its Vietnamese stores to a Thai group named Berli Jucker (BJC) for USD879 million as the German retailer prepares to withdraw from In 2013, the Thai billionaire Dhanin Chearavanont bought a supermarket in The effect has spilled over into Vu Minh Phu, chairman of the Ha Noi Supermarket Association, said, "Thai entrepreneurs have a long-term and detailed plan to gain access to the Vietnamese retail market. They hold four exhibitions each year, bringing visibility of their products to wholesalers and retailers alike. We need a similar policy that is suitable for this country in order to balance the market and create opportunities for domestic producers. I think supermarkets should have a quota of Vietnamese products on display on their shelves." Starting in 2015, a number of foreign firms will be tax-exempt as a result of ASEAN agreements. This is expected to temporarily cause problems for Vietnamese producers. Many experts point to a focus on quality and brand recognition as a solution. Construction of Deputy PM Hoang Trung Hai has urged On August 6, Deputy Prime Minister Hoang Trung Hai visited the construction sites on the route that connects Ben Thanh Market and "Because the terminal lies underneath large structures, the drilling is difficult," said a representative of the construction unit. The Deputy Prime Minister showed was not pleased upon finding out that the 17-km route in District 2 would take 54 months to be completed. However, representatives of the contractors explained that the process was slow because its construction and design were taking place at the same time. Meanwhile, leaders of Binh Duong District said they were handing over land to contractors to build the terminal at Hai went on to say that this first metro project in Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
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