Local banks urged to get tough on money laundering

Commercial banks should mitigate business risks and ensure their reputations by strictly implementing the Government's regulations on the prevention of money laundering and terrorist financing, heard a seminar held in HCM City yesterday.

Effective deployment of measures to fight money laundering and terrorist financing was essential to banks in international operation, Nguyen Van Ngoc, director of the State Bank of Viet Nam's Anti-Money Laundering (AML) Department, said.

The Vietnamese Government's laws to fight money laundering and financing for terrorists became effective in January and October last year, respectively, Ngoc said.

Most banks have issued internal regulations on anti-money laundering and terrorist financing in line with the Government's Decree 74 on AML released in 2005, he told the seminar, which was organised by the Viet Nam Banks Association and technology consulting firm Komtek.

However, banks should carefully study current regulations and international standards to help them map out appropriate internal regulations for the effective deployment of anti-money laundering methods, Ngoc said.

In addition, banks should improve training for their staff, especially those who work directly with customers, to raise their awareness of AML issues and enhance their ability to detect suspicious transactions involved in money laundering and terrorist financing.

In addition, updating customer information is an important step to detect behavior related to money laundering.

"Banks should select the appropriate information technology solutions to filter and analyse transactions in an aim to prevent and fight money laundering and other risks," he said.

Filtering software can help banks recognise those on black lists and AML risks, he added.

Moreover, he said banks must issue daily reports of large value transactions (equal to or greater than VND300 million or US$14,285) to the State Bank of Viet Nam, as required by law.

Jeremy Chan, regional business development director of Fircosoft, said that AML was an important requirement by global regulators.

The CEO of Aub Chapman Consulting Service Co, Aub Chapman, said that the sharing of information by peers across the industry would help regulators and contribute to the national interest.

"Document what you are doing so you can demonstrate what you have done," he said, adding that AML risk management should remain relevant to the bank's business and money laundering risks.

Beer production continues to bubble

Beer production in the first four months of 2014 reached 873.5 million litres, 4.5 per cent higher than the same period last year, reported the Ministry of Industry and Trade.

In April alone, the production grew by 26.5 per cent compared with that in March, totalling 240.8 million litres. Of this figure, Ha Noi beer brand of Habeco produced 40 million litres, a 113.7 per cent month-on-month increase, and Sabeco's Sai Gon beer brand produced 107.3 million litres, up by 19.5 per cent compared with the production in March.

The ministry asked the manufacturers to enhance productivity, improve quality and improve branding and marketing activities, especially in the tourist locations in order to raise sales and revenue.

The competition among domestic and foreign brewers is on the rise in Viet Nam, where people consumed nearly three billion litres of beer last year.

Viet Nam's biggest brewer Sabeco operates 24 plants across the country with an estimated capacity of over 1.8 billion litres per year. The company is reported to invest in three more projects from now till next year. The second largest brewer Habeco owns 14 breweries with a total output of around 811 million litres per year.

Despite a high import tax of 45 per cent coupled with other taxes, local consumers are able to still lay their hands on dozens of imported beer brands, which are turning the beer market into a red competition ground.

Marc Faber to address investment forum in HCM City

Leading Swiss investor and publisher Marc Faber will deliver a keynote speech at the Vientam Investment Forum 2014 (VIF) in Ho Chi Minh City on June 19, addressing barriers and options for investment in Vietnam.

Marc Faber, the publisher of the monthly Gloom Boom & Doom Report and author of Amazon’s bestseller Tomorrow’s Gold: Asia’s Age of Discovery, will also offer his forecast on a possible burst of the global financial balloon, which could be worse than the 2008 crisis.

Other key speakers, who have considerable investment experience in Vietnam, will include Thomas Hugger, CEO and Fund Manager, Asia Frontier Capital, and Don Lam, Co-Founder and CEO of the VinaCapital Group.

VIF 2014, under the auspices of the Ministry of Planning and Ivnestment, will seek opportunities to invest in emerging markets, including Vietnam.

The organizing board will implement a Business Matching programme,to help Vietnamese enterprises to familiarize themselves with exchange cooperation opportunities with international investment funds.

Exports to Germany hit nearly US$1.2 bln in Q1

Vietnam’s exports to Germany climbed 48.9% to US$434.18 million in March, bringing its three-month export revenue from this market to US$1.18 billion, up 1.5% against the same period last year.

With the impressive export recovery, the outlook for exports to the EU powerhouse appears to be brighter than last year, say leading market analysts.

Vietnam mainly ships telephone handsets and components, footwear, garments, coffee, timber products, seafood, backpacks, bags, wallets, handicrafts and computers, electronics and components to Germany.

Despite a 24.1% fall in value, telephones and components led the export items, raking in US$301.58 million, accounting for more than 20% of the total.

Coffee ranked second, fetching US$161.84 million, a year-on-year rise of 21.9%. Vietnam ships Robusta L1 and L2 to Germany through its Saigon port.

Garments came in third at US$153.64 million, up 17.4%.

Other products achieving high export growth included machinery, equipment and tools (up 55.2%), means of transport and spare parts (up 74.2%), rubber products (up 74.2%), and fruit and vegetables (up 31.3%).

On the downside, agro-forestry products saw a decline in export value including pepper (down 58.7%), ceramics (down 33.7%), rubber (down 41.8%) and cashew nuts (down 23.1%).

RoK company joins social housing market

The Republic of Korea’s National Housing Organisation (NHO) announced on May 8 that it will carry out 14 housing projects for low-income earners in Vietnam with a total cost of VND20.6 trillion.

As many as 25,000 flats will be constructed to benefit low-income earners in HCM City, Hanoi, Danang, Binh Duong, Quang Ngai and An Giang.

The biggest project will be an integrated urban area in HCM City’s Binh Chanh district, sitting on 79ha of land, or about one third of the total land fund allotted for the company.

NHO Chairman Lawrence Tham confirmed that NHO will market 100,000 flats in the next 10 years as committed to the Ministry of Construction.

He revealed the company will offer its property products at a reasonable price of around VND9 million/m2 on average.

Vietnam to focus ICT summit on agriculture

The Asian-Oceanian Computing Industry Organisation (ASOCIO) ICT Summit 2014, the biggest ICT event in Asia and Oceania, is set to take place in Hanoi from October 27 to 30.

The event, to be held in Vietnam for the second time since 2003, will focus on restructuring agriculture and on a new rural development model. It will also discuss issues about creating intelligent nations and the Social, Mobile, Analytic and Cloud Services (SMAC)'s technology.

At the press meeting in Hanoi on May 8, Truong Gia Binh, chairman of the Vietnam Software and IT Services Association (VINASA), said Vietnam is an agricultural country with more than 70% of its population working in the sector. Agriculture faces difficulties in production, transport, processing, reserves and consumption.

The application of ICT in agriculture will introduce new technologies as well as information on markets and prices, which will help farmers, he added.

The event is expected to draw 700 international delegates, including 250 international leaders from ICT associations and leading groups in 30 countries. It will include conferences, special seminars, exhibitions and meetings among businesses.

The meeting of the ASOCIO Council and the Japanese ICT Day 2014 will also be held on the occasion.

Techcombank receives top awards

The Technological and Commercial Joint-Stock Bank (Techcombank) has recently been voted as “the best commercial bank”, “the best retail bank”, “the best internet bank” and “the best customer service bank” in Vietnam in 2014.

This is the first time the bank has simultaneously won the four awards from the UK-based Global Banking & Finance Review, the world’s leading banking-financial magazine.

The prizes testify to the bank’s commitment to continuously improving the banking technology platform in order to better the quality of its services, thus meeting the increasing demand of customers.

The bank has been evaluated for its investment in developing technological infrastructure with an average US$15 million per year.

With this investment, the bank has met criteria on bank transactions such as fast growing branch networks, and pre-eminent service quality.

Techcombank has previously won a series of titles, such as the eAsia Award 2013 Prize for “e-commerce solutions in order to narrow the digital divide”. It was named “the Best Internet Bank of Vietnam” in 2013 and “the Best Retail Bank in Vietnam” for three consecutive years from 2011- 2013.

The bank has developed a nationwide network with more than 315 branches and transaction sites, connecting with more than 12,000 ATM machines in the BankNet and Smartlink systems and more than 2,000 card acceptance points.

Currently, more than 3.3 million individuals and over 45,000 businesses are using Techcombank’s services.

Dutch businesses seek cooperative opportunities in Mekong Delta

Businesses from the Mekong Delta region and the Netherlands met in Can Tho City on May 8 to learn about investment potential in the Mekong Delta region.

Dutch Consul General in HCM City Simon Van Der Burg said that the event opened up huge opportunities for cooperation between businesses of both nations in the future.

According to the Vietnam Chamber of Commerce and Industry (VCCI) Can Tho branch the Netherlands is one of the largest European investors in Vietnam.

At present, the Netherlands has invested in192 projects capitalised at US$6.3 billion in Vietnam, with two-way trade turnover reaching US$3.6 billion in 2013. Vietnam’s major exports to the Netherlands are seafood, footwear, garments and textiles, pepper, rice and coffee, while its Imports include machines, pharmaceuticals and medical equipment.

The Netherlands have also implemented support programs in the Mekong Delta region to help combat climate change and rising sea levels.

Earlier the same day, in a meeting with municipal leaders, the consul general expressed his wish to cooperate with the locality in fields such as energy saving, water resource improvement, waste water treatment and development of clean agriculture.

Vietnam, Cambodia promote trade and investment opportunities

Phnom Penh on May 8 hosted the Vietnam-Cambodia trade and investment promotion seminar to strengthen closer connectivity among businesses.

Addressing the seminar, the Cambodian Minister of Tourism, Thong Khon, highlighted HCM City’s efforts in implementing investment promotion activities in Cambodia, particularly in organising the annual Ho Chi Minh City Expo in Phnom Penh.

Minister Thong Khon urged Vietnamese businesses to boost cooperation with Cambodian partners, especially in the tourism sector in which both nations have great potential for stronger development.

Vice chairwoman of HCM City’s People Committee Nguyen Thi Hong emphasised that HCM City wants to play an active role in fostering traditional friendship and comprehensive cooperation between Vietnam and Cambodia, specifically in the economic field.

Over the years, HCM City’s investment in the Cambodian market has proved effective as some local businesses have established stable and long-term partnership with Cambodian enterprises. Furthermore, high quality Vietnamese products are sold at competitive prices, meeting the Cambodian consumers’ demand.

At the seminar, businesses shared experiences and investment information and learnt about the need for investment cooperation.

They also asked relevant agencies to help remove investment barriers to boost trade promotion activities, thus making economic and trade ties commensurate with the two countries’ great potential.

Increased opportunities for investors in support industry

More and more companies are keen to invest in Vietnam’s support industry, generating abundant business opportunities.

Duangdej Yuaikwamdee, Executive Director of Thailand’s Reed Tradex made the assessment at a press conference in Hanoi on May 8, ahead of the Industrial Components & Subcontracting Vietnam (ICSV) exhibition 2014 and the Vietnam Manufacturing Expo 2014.

Reedtradex - ASEAN's leading exhibition organiser, signed an agreement with Hanoi Hanoi’s Department for Industry and Trade for contract of the two events, which will take place at Hanoi-based Friendship Palace, from August 27-29.

Local industrial producers are expected to seize the opportunity to approach latest innovations, state-of-the-art solutions and services on offer by 200 foreign firms at the expo.

There will be the chance to seek customers and trade partners, and network with suppliers for better control of demand for imported industrial components.

Duangdej Yuaikwamdee said Vietnam is enjoying rapid export growth, while other ASEAN member countries are facing a decrease in export turnover.

He spoke highly of Vietnam’s economic development, technology, trade and human resources, especially in the field of automobile industry. Due to a sharp increase in domestic demand and tax reform, the country’s auto sector is likely to achieve a growth rate of 10 - 15% this year, he predicted.

According to Vietnam Custom statistics, Vietnam earned approximately US$529 million from export of machines, equipment, tools and manufacturing components in the first quarter of 2014, up 15.61% from the previous year.

Boom in garment and textile exports to the US

The American Chamber of Commerce in Vietnam (Amcham) has predicted that Vietnam’s US exports will reach US$28.1 billion this year, including US$9.7 billion from garment and textile exports.

Amcham has also forecast that Vietnam’s trade surplus with the US is estimated at US$22.7 billion while bilateral trade will hit US$33.6 billion this year.

Amcham quoted the US Department of Commerce as saying that Vietnam’s garment and textile exports to the US have accounted for 36% of the country’s total exports to the market.

The chamber projects that the US garment and textile imports from Vietnam are expected to reach US$10.5 billion in 2015, US$12.5 billion in 2017, US$14.3 billion in 2019, US$16.2 billion in 2021, US$18 billion in 2023 and US$19.9 billion in 2025.

At present, Vietnam ranks third among ASEAN countries exporting goods to the US just behind Malaysia and Thailand. The country is set to be an export leader among Southeast Asian nations to the US by 2015.

US increases tra imports in Q1

The US was the largest export market of Vietnamese tra fish in the first quarter of this year, stated deputy chairman of the Viet Nam Association of Seafood Exporters and Producers (VASEP),Vo Hung Dung.

Dung said earlier this week at a briefing of the association and Cuu Long (Mekong) delta provinces and cities in Can Tho City that Viet Nam's export value of tra fish in the first quarter of this year had a year-on-year increase of 5.17 per cent to US$408 million.

The US became the largest tra fish importer from Viet Nam and the EU was the second largest, Dung added.

In the first quarter, the export value of tra fish had a year-on-year surge of 15.25 per cent to $84 million in the US market while a year-on-year fall of 13.13 per cent to $82.87 million in the EU.

Meanwhile, the export value of tra fish to Brazil and ASEAN countries reached $68 million, he stated.

At the meeting, a representative of the Directorate of Fisheries pointed out that by the end of April, the Cuu Long Delta region had harvested 253,000 tonnes of tra fish and had a total area of 2,814 hectares for tra fish farming.

The VASEP reported that early this month, the price of tra fish for export processing reduced to VND24,500 per kilogram after increasing to VND24,600–25,600 per kilogram in March and April.

However, it was still higher than that of VND22,600–23,200 per kilogram in early this year because this was not the time for harvesting tra fish, the association stated.

Dung remarked that because the price is high, farmers will profit from growing tra fish, but the farmers have not yet increased investment in tra fish because the price is unstable.

He noted that in the past, the Government had policies to solve difficulties in production and trading of tra fish for enterprises, including credit loosening policies.

Businesses expect these policies to be continued next year so that they can further invest in improving quality and quantities of tra fish and ensure sustainable development of the industry in the coming years.

Tech firms showcase new imaging kit

Three separate exhibitions related to imaging opened yesterday at a single venue in HCM City with around 120 companies from Viet Nam and 30 other countries and territories taking part.

They are Viet Nam International Photo and Imaging, Viet Nam International Broadcast and AV Show, and Viet Nam International LED/OLED Technology Show.

Some famous names like Canon, Pentax, HTC, Oppo, Rang Dong, and Dien Quang are present at the three-day event.

The exhibitions provide companies an opportunity to show off their most modern and advanced technologies and equipment such as LED/OLED products and components, LED/OLED lighting and applications, cameras and camcorders, lenses for them, headphones and earphones, and amplifiers.

They also offer manufacturers and distributors of the products to look for partners in Viet Nam.

"The event will bring to domestic businesses, scientists, and others interested a broader and more practical picture of hi-tech and modern industries and help forecast development trends," Vu Van Khiem, general director of the Ministry of Science and Technology's Department for Southern Affairs, said.

Nick Yoshida, president and CEO of Canon Marketing Viet Nam, said: "Digital imaging is truly flourishing, particularly in Viet Nam. So much so that it is rapidly establishing itself as a central aspect of the culture here.

"We are happy and excited to find so many photographers, ladies and men, young and mature, from professionals to enthusiasts and beginners, who are expressing their passion and creativity, using our extensive range of imaging products, from input to output."

The three-day exhibitions are on at the Sai Gon Exhibition Convention Centre in District 7 and hope to welcome 30,000 visitors.

Rubber firms ask for tax break

The Viet Nam Rubber Association asked the concerned ministries this week to exempt the rubber industry from paying the 3 per cent export tax.

According to the association, it made the request because of the difficulties the industry is facing due to a sharp drop in prices and demand in the world market.

According to the Ministry of Agriculture and Rural Development, the rubber industry saw a year-on-year decline of 23.1 per cent in export volume to 144,000 tonnes, and a fall of 42 per cent in the export value to US$292 million in the first quarter of this year.

Over the last few months, the export price of local rubber dropped several times to reach as low as VND40 million, or $1,900, per tonne recently, which was half the 2011 price, because of oversupply in the world market.

Farmers and enterprises producing rubber have faced major difficulties in production and business due to the decline in exports. There are no signs of the industry making a rebound yet.

Banh Manh Duc from the Hoa Binh Rubber Company told Dau tu chung khoan (Securities Investment) newspaper that with falling rubber prices, most of the rubber companies have reduced their targets this year to lower than the 2013 target.

The Hoa Binh Rubber Company's net revenue in Q1 this year declined by 45.7 per cent to only VND46 billion ($2.19 million), Duc said.

The Phuoc Hoa Rubber Company also expects to gain a profit of only VND211.27 billion ( $10.06 million) this year, which is down 43.14 per cent from last year, according to the newspaper.

Although the global demand for natural rubber is forecast to grow by 4 per cent in 2014, the market expects to see a surplus of 373,000 tonnes this year, a fourth year of oversupply.

Worries over the economic growth and the demand from China, which buys 60 per cent of Viet Nam's rubber, have sent the global rubber price benchmark on the Tokyo Commodity Exchange to near 18-month lows.

The country can export only roughly 1 million tonnes of rubber in 2014, down 7 to 10 per cent against last year, but the export value can drop sharply by 25 to 30 per cent to total between $1.8billion to $2 billion, as the prices could fall by 16.3 per cent from 2013, according to the association.

Viet Nam is the world's third-largest natural rubber producer after Thailand and Indonesia.

Phu My Fertiliser to pay $45m in dividends

Phu My Fertiliser Corp (DPM) next month will spend VND950 billion (US$45 million) to pay out dividends despite poor business result in the first quarter of this year.

DPM, one of the top 30 shares by market value and liquidity on the HCM City Stock Exchange, will pay a cash dividend at the rate of 25 per cent. The deadline for shareholders to register to participate in the payout is May 20, with the payment to be made on June 13.

The company has already paid a cash dividend at the rate of 25 per cent, lifting the total cash dividend of 2013 to 50 per cent, equivalent to VND1.9 trillion ($90 million).

The fertiliser company has also just announced consolidated business results from the first three months of this year, with its net profit reaching just VND381 billion ($18 million), down nearly 46 per cent compared to the same period last year.

Its revenue also took a hit of 13.22 per cent during the period, reaching more than VND2.5 trillion ($118.5 million).

The firm attributed the fall to lower sale prices compared to the first quarter of last year, while volatility on the financial market slashed finance-related revenues by 40 per cent during the period.

The company has set modest business targets for this year and has expressed concerns with volatility in the fertiliser market. Its total revenue is projected at VND8.7 trillion ($412.3 million) while net profit is expected to reach VND1.219 trillion ($57.8 million), down 19.5 per cent in revenue and 45 per cent in profit from last year. The uncertainty has also led the company to trim its dividend rate to just 25 per cent this year.

Local banks fund PVD $160m to purchase oil rig

Three domestic commercial banks have signed contracts worth US$158.7 million with PetroVietnam Drilling & Well Services Corporation to buy the jack-up rig PV Drilling VI on Tuesday.

They are the Bank for Foreign Trade of Viet Nam (Vietcombank), the Viet Nam Export and Import Bank (Eximbank) and the Southeast Asia Commercial Joint Stock Bank (SeABank).

Singapore-based PV Drilling Overseas, a subsidiary of PVD, will be in charge of rig construction project worth $226.7 million.

PV Drilling Overseas said the rig, which is expected to go into operation in March 2015, is capable of operating in depths of up to 400 feet (121.92m) underwater and could drill up to a maximum depth of 30,000 ft (9,144m). The rig can hold up to 150 people and is designed to allow aircraft such as Sikorsky, S61N and special Mi-17.

Former Agribank chairman joins national finance advisers

Central Economic Committee deputy head Nguyen Ngoc Bao has been appointed as a member of the National Advisory Council for Financial and Monetary Policies by Prime Minister Nguyen Tan Dung.

Bao replaces the committee's director, Vuong Dinh Hue, in the council. He was formerly the chairman of the Bank for Agriculture and Rural Development (Agribank).

The advisory council is chaired by Deputy Prime Minister Vu Van Ninh, with 29 members. Its vice chairmen are State Bank of Viet Nam Governor Nguyen Van Binh and National Finance Supervisory Commission Chairman Vu Viet Ngoan.

The council is responsible for proposing important policies and projects to the Government on financial and monetary issues. It also gives professional advice to the Prime Minister on related operational measures.

Science week opens in Da Nang

The central city hosted the nation's first National Science and Technology Week yesterday.

The event provided a forum for Vietnamese scientists, for students to display their innovations and for foreign experts to share their experiences and update themselves on technology and research.

"It's not only an event for Vietnamese scientists, but also for younger people," Deputy Minister of Science and Technology, Tran Quoc Khanh, said.

"Viet Nam's science and technology sector aims for rapid and sustainable development over the next six years," he said. "The event is part of a series of programmes to be held in Ha Noi, HCM City, and Bac Giang."

Recent statistics show that Viet Nam's investment in Research and Development was only about 0.7 per cent of its GDP (equal to US$700 million), of which 70 per cent came from the Government's budget.

Viet Nam and Finland are co-operating on the second phase of an Innovation Partnership Programme in Viet Nam between 2012-16. Many hi-tech businesses from Finland have been seeking investment opportunities in Viet Nam.

The programme, which provides Official Development Assistance from Finland, aims to strengthen Viet Nam's National Innovation System.

The first phase of the programme was launched in 2009 in Ha Noi, Hai Phong, Da Nang, Thua Thien-Hue, HCM City, Can Tho, Lam Dong and An Giang.

National Science and Technology Week will continue with workshops and conferences today and tomorrow.

Scientists from the United States, Japan, Korea, Finland, Thailand, Indonesia and the Philippines are attending.

More opportunities for producers in support industry

The Industrial Components and Subcontracting Vietnam (ICSV) Exhibition 2014 and the Vietnam Manufacturing Expo 2014 slated for August 27-29 in Hanoi will allow domestic manufacturers to seek new business and investment opportunities.

Vice Director of the Hanoi Department of Industry and Trade Dao Thu Vinh made the assessment at a press conference in the city on May 8.

She added both events are expected to help boost the transfer of advanced and energy-saving technologies between producers operating in the support industry, which contributes to increasing benefits of industrial products and reducing production costs.

Through the expos, support-industry enterprises based in Hanoi will be able to foster trade promotion activities, further meet demand of foreign-invested and assembling firms and expand their exports.

Executive Director of the Thailand-based Reed Tradex Co., Ltd Duangdej Yuaikwamdee said local industrial producers are expected to seize the opportunity to approach the latest innovations, solutions and services offered by 200 participating firms at the expos.

Meanwhile, the exhibitions will be good chances for foreign investors to seek Vietnamese partners and grasp information on their demand for imported spare parts, he added.

Representatives from Reedtradex, one of ASEAN’s leading exhibition organisers, and the municipal department signed a contract for the expos and discussed ways to enhance trading activities through such events.

According to the General Department of Vietnam Customs, the country earned 529 million USD in January from the export of machinery, equipment and vehicle spare parts, a year-on-year hike of 15.61 percent.

EVN to ensure sufficient water for agricultural production

Electricity of Vietnam (EVN) has pledged to ensure enough water for agricultural production and domestic use in the central and Central Highlands regions during summer and the summer-fall crop, which begins in April and ends in August.

The corporation recently organised working sessions with representatives from the Department of Agriculture and Rural Development, hydropower plants and relevant agencies in Phu Yen, Quang Nam, Ninh Thuan and Binh Thuan provinces in order to adjust the supply of water from reservoirs to lowlands.

Accordingly, from now until August, reservoirs at local hydropower plants will discharge water through the generation of electricity at least 12 hours a day. The discharge will depend on the water demands of local people.

EVN said that in May it will utilise thermoelectricity resources to ensure the power supply for the southern region and effectively operate hydropower plants in the regions.

In the first four months of 2014, the country’s output of commercial electricity stood at 38.5 billion kWh, up 8.31 percent from the same period last year.

Mekong Delta city saves 13 mln kWh of electricity

The Mekong Delta city of Can Tho saved 13 million kWh of electricity over the first four months of 2014, up 9 percent from a year earlier, according to the municipal Department of Industry and Trade.

To that end, the city has further publicised energy saving measures, such as avoiding the use of high-consuming devices during peak hours and using compact fluorescent lamps and solar water heaters.

Local agencies, restaurants and trade centres have also been asked to cut down decorative and advertising lights.

In addition, the Can Tho Electricity Company has constructed more 110kV power lines and distribution networks and repaired other facilities to reduce the power loss rate.

Dutch companies eye investment opportunities in Mekong Delta

A delegation of Dutch enterprises had a meeting in Can Tho city on May 8 with representatives from Mekong Delta businesses to seek investment opportunities in the region.

The Dutch companies mainly operate in riverbed and seabed dredging activities, wastewater treatment and farm produce quality control.

Dutch Consul General in Ho Chi Minh City Simon Van der Burg said that the meeting offered a chance for the two sides’ businesses to seek partners and exchange demands for cooperation.

According to the Vietnam Chamber of Commerce and Industry, the Netherlands is one of the largest European investors in Vietnam, with two-way trade hitting 3.6 billion USD in 2013. It has invested in 192 projects totaling 6.3 billion USD in the Southeast Asian country.

In the Mekong Delta region, the Netherlands has also carried out a lot of programmes to support the area, including one helping it cope with climate change.

The same day, the delegation was received by senior officials of Can Tho city.

Chairman of the municipal People’s Committee Le Hung Dung pledged that all issues relating to administrative procedures will be dealt with in a maximum of five working days.

Techcombank receives top awards

The Technological and Commercial Joint-Stock Bank (Techcombank) has recently been voted as “the b est commercial bank”, “the best retail bank”, “the best internet bank” and “the best customer service bank” in Vietnam in 2014.

This is the first time the bank has simultaneously won the four awards from the UK-based Global Banking & Finance Review, the world’s leading banking-financial magazine.

The prizes are the newest evidence of the bank’s commitment to continuously improving the banking technology platform in order to better the quality of its services, thus meeting the increasing demand of customers.

The bank has been evaluated for its investment in developing technological infrastructure with an average 15 million USD per year.

With this investment, the bank has met criteria on bank transactions such as fast growing branch networks, and pre-eminent service quality.

Techcombank has previously won a series of titles, such as the eAsia Award 2013 Prize for “e-commerce solutions in order to narrow the digital divide”. It was named “the Best Internet Bank of Vietnam ” in 2013 and “the B est Retail Bank in Vietnam ” for three consecutive years from 2011- 2013.

The bank has developed a nationwide network with more than 315 branches and transaction sites, connecting with more than 12,000 ATM machines in the BankNet and Smartlink systems and more than 2,000 card acceptance points.

Currently, more than 3.3 million individuals and over 45,000 businesses are using Techcombank’s services.

VietJet Air to operate direct flights to Singapore

Vietnam’s VietJet Aviation Joint Stock Company (VietJet Air) will open direct flights from Ho Chi Minh City to Singapore on May 23.

VietJet Air announced at a press conference in Singapore on May 8 that the Ho Chi Minh City-Singapore route will initially operate seven round trip flights per week. The number will be raised to 14 in the near future, to meet increasing demand.

At the press conference, VietJet Air Vice President Nguyen Thi Thuy Binh said that this is the airline’s second international air route. The first one flies to Bangkok, Thailand.

She added that VietJet Air plans to operate other direct flights from Hanoi to Incheon (the Republic of Korea) and Siem Riep (Cambodia), and from Ho Chi Minh City to Taiwan and Hong Kong (China) later this year.

According to Luu Duc Khanh, VietJet’s Managing Director, Singapore is a great entry to the Asia Pacific market, especially for tourists to connect to this part of the world.

Therefore, VietJet Air has chosen Singapore as its next destination, he said, adding that it also plans to fly to the US, Australia and some European cities in three to five years.

VietJet Air becomes the seventh airlines operating direct flights between Singapore and Hanoi, Ho Chi Minh City and Danang of Vietnam, together with Vietnam Airlines, Singapore Airlines, Tiger Airways, Jetstar Asia, Silkair and Lion Air.

According to the Transport Ministry, the Vietnam-Singapore aviation market in 2013 reached 966,000 passengers, an increase of 1 percent over the previous year.

Interest rates poised to fall further: paper

Local banks are expected to cut interest rates further sometime this year as deposits have been increasing while credit growth has remained sluggish, the Saigon Times Daily reported.

A new round of interest rate reductions is just a matter of time as government bond yields and interest rates on the inter-bank market have kept falling. As of April 22, the banking system reported a deposit growth rate of 3.09 percent while its lending inched up a mere 0.62 percent, the Daily cited the central bank as saying.

Furthermore, there have been no positive signs in banks’ cash flows, signaling yet another round of interest rate cuts.

In April, the Hanoi Stock Exchange held 19 bond auctions, raising over 13.2 trillion VND. However, the bond volume on the primary market tumbled 62 percent against the previous month.

Coupons hovered around 5.58-5.69 percent per annum for two-year bonds, 6.07-6.9 percent per annum for three-year debt papers, 7.12-7.8 percent for the five-year tenor, and 8.7 percent for the 10-year term. They declined by 0.4 to 0.41 percentage points per annum against March.

Since early this year, the State Treasury has mobilized over 80.6 trillion VND from G-bond sales. The agency is the issuer of around 90 percent of G-bonds.

However, last week’s winning coupons of two, three and five-year G-bonds dropped 10 to 20 basic points against the week before. G-bond investors estimated that bond yields would move flat or drop slightly in the next few weeks.

Bond yields on the secondary market have stood at 5.6-5.8 percent, 6.07-6.3 percent and 7.12-7.25 percent per annum for tenors of two, three and five years respectively.

Statistics of banks showed that credit institutions did not show up at auctions on the open market for the second straight week before the national holidays of Vietnam Reunification Day and International Labor Day that ended on May 4.

Meanwhile, the central bank still offered 1 trillion VND each session with a coupon of 5.5 percent per annum for the seven-day tenor. The week before the holiday also saw no loans falling due on the open market.

Given slow credit growth and huge surplus capital, banks have no demand to take out loans through open market operations or purchase bonds.

Interest rates on the inter-bank market have been in decline for short tenors while long-term rates have remained unchanged. The overnight rate has been 1.65 percent per annum, one week at 1.9 percent, two weeks at 2.2 percent, dropping 0.15 to 0.3 percentage points against the previous week respectively. Meanwhile, the one-month rate has stayed unchanged at 3.35 percent per annum.

Large banks have continued to offer loans on the open market with most transactions focusing on tenors below one month.

VietinBank to own over 10% of Haiphong Port

Haiphong Port One Member Company Limited will launch an initial public offering (IPO) on May 14 and the Vietnam Bank for Industry and Trade (VietinBank) will become its strategic partner through a 10.26% stake acquisition.

Leaders of Haiphong Port met representatives of investment funds in HCMC and Haiphong last month to introduce its equitization plan to potential investors.

According to the plan approved by Vietnam National Shipping Lines (Vinalines), Haiphong Port will sell up to 25% of chartered capital to investors and the remainder is still retained by the State.

Besides a 10.26% stake for strategic shareholder VietinBank, Haiphong Port will sell 11.51% of the 25% shares via public auctions and the rest to its employees.

Earlier, VietinBank wrote to the Ministry of Transport seeking approval to become the strategic stakeholder of member ports of Vinalines when these ports went public, starting with Haiphong Port. The share purchases are regarded as a way to convert debts owed by Vinalines and its member units to VietinBank into equity, with the bank’s ownership percentage being the highest.

Among the credit institutions that lent to Vinalines, VietinBank is the biggest creditor. Total debt at the holding company Vinalines amounts to around VND2.622 trillion. Most of the loans were used to purchase ships in previous years but these ships ran at a loss.

According to an approved asset valuation plan, Haiphong Port’s value is VND4.314 trillion as of June 2013, with the State capital accounting for VND3.269 trillion. The estimated IPO price is VND13,500 per share.

Haiphong Port earned revenue of over VND1.5 trillion last year and saw its profit rise 13% year-on-year to VND142 billion.

As planned in the 2014-2018 period, the port can raise its pre-tax profit to VND216 billion this year and VND461 billion in 2018. The estimated dividend is 4% this year and 8% in 2018.

Haiphong Port continues investments in infrastructure development and equipment at Tan Cang Dinh Vu. The port is seeking approval from the Ministry of Transport to develop six piers able to handle container ships of 50,000-100,000 DWT at Haiphong International Gateway Port and in Lach Huyen facilities.

Locally-assembled OLED TVs to debut this quarter

South Korean electronics firm LG plans to launch the televisions assembled in line with organic light-emitting diode technology at its facility in the northern province of Hung Yen in the second quarter of this year.

Earlier this year, LG Electronics Vietnam rolled out a series of new TV models using high technologies, including the high-end LG EA970T, a curved-screen OLED TV model. This paper-slim model is 4.3mm thick and uses the OLED technology for better image display.

Four months ago, the company imported the LG 55EA9800, a curved-screen OLED TV model, for sale in Vietnam to gauge the market. The model was the first of its kind in the country and was priced at VND250 million at the time.

However, the company expects prices of OLED TVs to go down by 30% when these products are assembled here in this market.

Ko Tae Yeon, general director of LG Electronics Vietnam, said the company’s ambition was to dominate the high-end TV market segment, especially for the OLED models. Apart from the 55-inch EA970T, the company plans to market other hi-tech models with bigger screens.

LG will also sell 14 different models of Ultra HD and Full HD TV with screens of 32 to 55 inches or 84 inches before the World Cup 2014 soccer tournament starts in June this year as many Vietnamese take this occasion to buy new TVs.

No official prices have been made available for these new models.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR