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Vietnam recorded a trade surplus of 110 million USD with Indonesia for the second consecutive year in 2012.
Bilateral trade turnover reached 4.6 billion USD, a year-on-year decrease of 0.02 percent compared with 4.606 billion USD in 2011.
Vietnam ’s export revenue to Indonesia was 2.358 billion USD last year, a year-on-year decrease of 0.05 percent. Rice exports generated revenue of 458 million USD, telephones and electronic components generated 315 million USD.
Vietnam imported 2.247 million USD of goods from Indonesia in 2012, including 232 million USD in paper, and 142 million USD in cooking oil. It also bought machines and components, chemicals, computers and electronic devices.
The country recorded a trade surplus of 111 million USD with Indonesia in 2011.-
Vietnam Airlines runs HCM City-Thanh Hoa route
The national flag carrier, Vietnam Airlines, officially launched the Ho Chi Minh City-central Thanh Hoa province air route, with the first flight landing Tho Xuan Airport, Thanh Hoa on February 5.
With five flights using Airbus A321 per week, the air route, Vietnam Airlines’ 39 th domestic one, is expected to meet increasing local travel demand, especially during the upcoming Lunar New Year holiday.
The route is hoped to help promote investment and socio-economic development in Thanh Hoa and the Northern Central region thanks to its link with Ho Chi Minh City , the country’s largest economic hub.
On the occasion, Vietnam Airlines also launched a promotional ticket programme for the route users.
Before the debut of the new air route, the number of passengers travelling between Thanh Hoa and Ho Chi Minh City via Vinh Airport in Thanh Hoa’s neighbouring Nghe An province varied from 60,000 to 70,000 per year.
Asiana Airlines to buy stake in shopping centre
The Republic of Korea's flag carrier Asiana Airlines said that it will buy a 50 percent stake in the Kumho Asiana Plaza Sai Gon commercial centre and hotel complex in Ho Chi Minh City from an affiliate.
The 50 billion won (47 million USD) acquirement will be carried out this month, according to the carrier.
The 225 million USD centre is located at 39 Le Duan Boulevard, District 1, and consists of a 21-story five-star hotel with 300 guest rooms and three 32-story office and apartment buildings.
Kumho Asiana Plaza Sai Gon is a joint venture between Kumho Engineering & Construction, with a 65 percent stake, and two local partners – Saigontourist and HDSC – with a combined 35 percent stake.
Both Asiana Airlines and Kumho Engineering & Construction are owned by Korean Kumho Asiana Group.-
Corporation works to better power transmission
The Vietnam National Power Transmission Corporation (NPT) has said that it plans to invest 16.9 trillion VND (805 million USD) in power transmission lines this year, up 1.36 times from the previous year.
Accordingly, the NPT will put into operation 54 transmission lines ranging from 110kV – 500kV and launch additional 50 similar projects, especially those in the southern region.
On top of this, the corporation will deploy projects to improve the efficiency of official development assistance use and transmission capacity of power grids across the north.
In order to seek and utilise the needed sum, NPT will focus its efforts on improving the quality of investment, borrowing from various commercial banks and financial institutions, and scrutinising operation and management models to ensure minimal costs.
It will also call for new loans from domestic and foreign financial organisations in the time to come.-
Trade surplus with Americas hit 15 billion USD
The nation’s trade surplus with markets in North and South America reached 15.3 billion USD in 2012, an increase of 15 percent over the previous year, according to the General Department of Customs.
The total value of trade with the Western Hemisphere climbed to 31.3 billion USD, of which Vietnam’s export value accounted for 23.3 billion USD.
Rising export value to American markets continued to drive the trade surplus with the region.
The US remained Vietnam’s leading importer, with an import value of 19.5 billion USD last year, an increase of 16 percent over 2011. Canada bought 1.14 billion USD worth of Vietnamese goods, Brazil , 710 million USD and Mexico , 685 million USD.
Textiles and garments were the top export earner, with a value of 8 billion USD to American markets, up 9 percent. Footwear followed with 3 billion USD, up 17 percent. Wood products, seafood, equipment, and electronic products also generated export earnings of at least 1 billion USD each.
In 2012, Vietnam implemented a number of trade promotion programmes to boost exports to American countries.
The Forum on Vietnam – Latin America Trade and Investment, with participating businesses from 13 Latin American countries, also facilitated Vietnamese and Latin American investors in indirectly discussing measures to boost trade and investment.
Although trade between Vietnam and American countries has increased at an average rate of 30 percent annually, from 300 million USD in 2000 to more than 15 billion USD in 2012, trade experts say the market is not yet fully tapped.
Skills shortage threatens to stunt business growth
Businesses around the world are reporting a skills shortage epidemic that is weighing on growth prospects, according to the latest Grant Thornton International Business Report.
The findings in the report were based on a survey conducted between August and December 2012 of about 6,400 chief executive officers and other senior executives from all industries.
Over one in four businesses surveyed said they expected their 2013 expansion plans to suffer as a result of skills shortages, with the rate rising to more than one in three in the so-called BRIC economies (Brazil, Russia, India and China).
Almost four in ten businesses around the world were struggling to recruit the right people, with 64 per cent citing a lack of technical skills as the primary problem, the survey found.
“The concern is that a lack of talent will dampen business productivity, ultimately threatening future growth and profitability,” the report said.
“With unemployment running so high in many mature economies, it is somewhat ironic that business leaders are concerned by a lack of skills,” commented Grant Thornton International’s Paul Raleigh.
“In the short-term they will need to plug these skills gaps with people from outside the organisation as best they can,” he added.
“But in the longer-term they need to invest in their internal training programmes to mould the people that will help them deliver on strategy, innovate and ultimately grow,” he noted.
A lack of experience (56 per cent) or qualifications (54 per cent) were also mentioned, and one in five business leaders complained of restrictions on immigration as an obstacle to recruiting talent.
In Viet Nam, the lack of work experience was cited by 84 per cent of survey respondents, while 70 per cent complained of a lack of appropriate qualifications and 61 per cent noted a surprisingly low quantity of applicants for skilled positions.
A shortage of technical skills was nearly as much an issue in developed as emerging economies, the report said, with 61 per cent of businesses surveyed in the BRIC countries identifying it as a major problem, compared to 65 per cent of companies in the G7 developed nations and 57 per cent in the developing economies of the Asia-Pacific region.
Economists urge effort to build services sector
The services sector is in a slump along with the rest of the economy, and economists have suggested measures to help it recover.
Services account for a growing share of the economy, expanding in the last four years to account for over 50 per cent of the gross domestic product.
But analysts said even this is far short of potential in a market of nearly 90 million consumers.
To continue growing, however, they said the sector needs many big changes.
Truong Dinh Tuyen, a member of the National Monetary Policy Advisory Council, said the services sector could only grow rapidly if living standards are high.
So, it is essential to improve living standards in the country, he said.
Besides, it is necessary to have policies to encourage foreigners to buy houses in the country so that they would use domestic services, helping the sector develop, he said.
He stressed the need to revive industry since thriving manufacturing companies would use various services.
The Government should allow the currency to depreciate when inflation is down to benefit exporters and improve the economy’s competitiveness.
Later it could keep the exchange rate stable to prevent speculation and curb inflation, he said.
Dr Nguyen Duc Kien, vice chairman of the National Assembly’s Economics Committee, said overall confidence has to be revived for the services industry to recover.
Authorities need to help businesses overcome their difficulties and enable them to access credit at reasonable interest rates.
Banks should be encouraged to offer cheap loans to certain priority sectors like agriculture, exports, supporting industry, small and medium-sized enterprises, technology- and labour-intensive firms, and developers of low-income housing, he said.
He called on companies to speed up their restructuring process to improve efficiency and minimise costs.
He suggested that they should cut prices to liquidate their massive inventories and make strenuous efforts to expand both their domestic and overseas markets.
Viet Nam is increasing its presence in the global services market through its membership of the Association of Southeast Asian Nations and commitments it made upon joining the World Trade Organisation in 2007.
The country’s services sector is forecast to grow by 8.85 per cent annually and account for 42-43 per cent of the country’s GDP by 2020.
CMMi requirement poses difficulties for software firms
While CMMi (capability maturity model integration) is helping software firms increase their competitive edges, the requirement for a CMMi certificate is a big obstacle for software firms.
Most of the small and medium firms can’t afford the $25,000 they have to outlay to get one and so they become second rate companies, with the bigger firms getting all State business, company leaders said.
According to the Ministry of Information and Communication, CMMi would help software and digital content firms standardise production processes and quality management and help improve competitiveness.
With more enterprises having CMMi, Viet Nam would become more competitive in the world market.
Since 2010, the ministry has run the VND60 billion (US$2.8 million) State-funded project to support enterprises building up to apply the production process in accordance with CMMi standards.
Every firm joining the project can send its staff to the CMMi training courses and receive the prop-ups of $25,000 to be spent on the building and implementing of production process in accordance with CMMi standards.
Fourteen enterprises obtained CMMi certificates level 3 in 2010-12 and one obtained CMMi level 5 (TMA Solution).
However, $25,000 only covered 50 per cent of the total businesses had to outlay to obtain a CMMi. Most small and medium enterprises could not afford the other $25,000, because they were small and medium in size.
The CMMi once again came under the spotlight as the ministry made public the draft regulation on the procurements for State budget-funded projects.
The draft regulation says projects would give priority to software products made by the enterprises which had one of the certificates: ISO 9001, ISO 27001 and CMMi level 3 or higher.
Nguyen Van Hien, director of iNet Solution, said the regulation would “kill” small information technology firms, give big firms the opportunity to dominate the market and install barriers which may impede the development of the Viet Nam’s information technology.
Others also warned that if Viet Nam attached too much importance to the requirements in certificates, enterprises with the most certificates would win most of the bids, leaving no opportunity for enterprises with fewer certificates.
Once big firms won the bids and got contracts, they would outsource to smaller firms which would act as the sub-contractors. As such, small firms would remain “small” forever because their financial capacity did not allow them to obtain certificates.
Hien said only new software outsourcing firms needed a CMMi as a document to prove their professionalism to the clients who placed orders. It was because the firms which did the outsourcing did not master source codes; therefore, the customers needed to consider the professionalism of the partners before making a decision for easier management and development in the future.
Meanwhile, the companies which made software and did trade with their software products needed to find optimum quality processes for themselves, with no need to have CMMi. Most of the big software groups in the world do not much care about CMMi, he said.
Pham Hong Quang, director of CadPro, while agreeing that CMMi was very useful, said there were many things Vietnamese firms needed to receive support for, other than CMMi, such as making better products.
Builders abandon unfinished projects
The continuing slump in the property market, now four years old and counting, is forcing developers to sell out unfinished projects to other developers.
It is benefiting both the sellers, who can finally get a major portion of their money back, and buyers who do not have to go through the rigmarole of applying for licenses and acquiring land.
Luong Tri Thin, general manager of Dia oc Dat Xanh Company, said 2013 would see lots of developers, both domestic and foreign, selling their projects.
Singaporean, Malaysian, and Japanese developers were interested in the Vietnamese real estate market, and were looking to snap them up, he said.
“Japanese investors are eyeing buildings in major cities, Singaporeans are interested in housing projects, and Malaysians are looking to develop urban areas,” he said.
In the second half of last year Hoang Quan Consulting Trading Service Real Estate Corporation bought four projects, three of them housing.
This year it has bought a part of the 3.53-ha Nam Hiep Thanh housing project in the Phu My new urban area in southern Ba Ria – Vung Tau Province developed by Nam Hiep Thanh Investment Joint Stock Company.
Hoang Quan acquired 1.168ha, named it Cinderella 2, and will build terrace houses and villas.
Hoang Quan Corp also intends to buy more projects that have “soft” price to diversify their products.
Dia oc Dat Xanh announced plans to buy two apartment projects in HCM City, and wrapped up purchase of one of them at the end of last month, the 3.6-ha Sunview 7 in Thu Duc District.
The VND1.2 trillion project, developed by Sai Gon General Service Company (Savico), consists of five blocks of 20 floors with around 2,000 apartments, and is meant for low-income earners.
The firm is negotiating for the second, a 3.2-ha project in Go Vap District with four blocks of apartments.
At the end of last year it had bought two other apartment projects in HCM City — in Go Vap and Thu Duc Districts — from Thien Loc and Gia Phu real estate firms.
Thin said the company would continue to look at other feasible projects for buying.
The sellout is also happening in the north.
Thu Duc Housing Development Corporation recently sold its VND80 billion Dong Mai project in Ha Noi’s Ha Dong District.
On January 16 Vinaland, a property-focused fund, sold its project at 30 Nguyen Du Street, Ha Noi, to tobacco company Vinataba for US$3.3 million.
Song Hang Company bought a share in the Hatoco apartment project on Tran Phu Street in Ha Dong from Ba Dinh Land for VND500 billion ($23.8 million).
Busy 2013 for central city ports
The central city’s ports are scheduled to receive 4.6 million tonnes of cargo, including 165,000 TEUs (twenty-foot equivalent unit), and earn VND348 billion (US$16 million) this year.
According to Nguyen Thu, general director of Da Nang Port, Tien Sa Port only allows access to 30,000 DWT (deadweight tonnage) ships, while 50,000 DWT container ships can dock at Lien Chieu.
The Japan International Co-operation Agency (JICA) Viet Nam had agreed to provide financial aid to Lien Chieu Port and Tien Sa Port’s second phase of construction.
Last year, 4.2 million tonnes of cargo were shipped via the ports of Tien Sa and Lien Chieu with total revenue of VND330 billion ($16 million), contributing VND17 billion ($800,000) to the state budget.
The ports also hosted 40,000 tourists from cruises, a 7 per cent increase from 2011.
Da Nang exports earn $1.5bn
Central Da Nang City’s exports earned US$1.5 billion last year, of which the industrial exports accounted for 86 per cent, Vice Chairman of the city’s People’s Committee Phung Tan Viet said at a year-end meeting with the city’s industry and trade department.
“It’s the first time the city has achieved the figure. However, it’s also a significant growth of exports during the economic downturn,” he said.
The vice chairman added that exports from foreign-invested projects represented 53 per cent of the city’s total exports last year.
According to the industry and trade department, the city’s industrial production value reached VND14.6 trillion ($695 million) last year, an 8.6 per cent increase in comparison with 2011.
Da Nang attracted 241 foreign-invested projects with a total capital of $3.6 billion, while the tourism sector hosted over 2.6 million tourists, bringing in VND2.6 trillion ($124 million).-
Cable maker takes over rival in $3.4 million deal
Viet Nam Electric Cable Corporation (CADIVI) bought Sai Gon Cable Company, part of the Sai Gon Cable and Telecommunication Material Joint Stock Company (SACOM), for around VND90 billion (US$4.3 million).
With total production area of 4.5ha, the company primarily manufactures telecommunication cables and electric cables with annual outputs of 800.000km of twin telecom cables and 700-800 tonnes of electric cables respectively.
This productivity is expected to earn CADIVI additional profits of about VND2 trillion ($96.15 million) per year, said CADIVI general director Nguyen Loc.
VPBank, Vinacomin to collaborate in credit, forex, investments
VPBank and the Viet Nam Coal and Mineral Industries Group signed a comprehensive co-operation deal yesterday in Ha Noi.
Under the agreement, the two sides will work together in sectors including credit, money flow management, forex trading, bonds, securities services and investment. VPBank will also grant credit products to the group and its members.
VPBank provided US$10 million to the group for building the Cam Pha Thermal Electricity Plant. The two sides have also implemented preferential policies for each other’s customers.-
VFA sets floor price for rice exports
The Viet Nam Food Association (VFA) has announced new floor prices for rice exports that will take effect on February 6.
The minimum export price for five per cent broken rice will go up to US$410 per tonne from the current prices of about $390 per tonne, while 35 per cent broken rice will be exported at no less than $365 per tonne.
The fixing of floor prices is to encourage rice exporters not to set lower prices since the prices of Vietnamese rice was now $30-40 lower than that of Pakistan and Indian rice, the association said.
The VFA has called on rice exporters to strictly adhere to floor prices, adding that they can decide on their own prices for other varieties.
In January, rice export fell in both volume and value over last year, the association said.
Exporters shipped 404,095 tonnes for a free-on-board (FOB) value of $183.4 million, a reduction of 35.68 per cent in volume and 36.94 per cent in value over December in 2012.
The average FOB price during the period was $453.95 per tonne.
VFA chairman Truong Thanh Phong said rice prices at the end of last month fell by $20-30 per tonne compared to the end of December due to low demand in the world market and stiff competition among rice exporters.
In January, VFA members signed contracts to export 1.24 million tonnes of rice, and delivery of 637,000 tonnes have to be made this year on contracts signed last year.
This meant another 1.4 million tonnes of the grain (in addition to the 404,095 already sent in January) have to be shipped in the first quarter, he said.
Currently, VFA member companies are buying rice under a plan to buy one million tonnes from the winter-spring crop to support farmers, Phong said.
Paddy purchase prices have risen slightly to VND5,400-5,500 for a kilogramme, he said, adding that this was good for farmers.
Delta city boosts rice exports
Can Tho exported 76,660 tonnes of rice and 14,166 tonnes of seafood last month, earning more than US$82 million, a year-on-year increase of 3.3 per cent.
The city is expected to ship 860,000 tonnes of rice and 170,000 tonnes of seafood abroad by the end of this year, pushing revenue from the city’s ten key export items to $1.46 billion, up 17.8 per cent over 2012.
The Mekong Delta city is upgrading infrastructure, expanding industrial zones, and completing transport projects to boost its exports. It is also improving the quality of agricultural products for export and taking advantage of incentive policies.
Municipal authorities are intensifying measures designed to stabilise market prices and ensure an adequate supply of essential goods for domestic consumption.
In order to attract more investors, Can Tho is also simplifying administrative procedures, offering incentive tax policies and improving its business climate.
Drought could cause power shortages
Viet Nam may face a power shortage during the dry season due to serious droughts that have hit the country's central and southern regions since late last year.
Speaking at a recent meeting about power supply between January and June, deputy general director of Electricity of Viet Nam (EVN) Dang Hoang Giang said that since late last year, there had not been enough rain to fill reservoirs at hydropower plants.
Shortages would be more severe in southern provinces because no new power sources had been added to the national grid, he said.
EVN was also concerned about the shortage of gas to generate power between July and September.
EVN said it would need to mobilise 1.8-2.4 billion kWh of diesel-fuelled power which would drive up production costs, he said.
He explained that on average, 1kWh generated using hydropower cost VND1,437, but 1Kwh generated by diesel cost VND4,500 – 4,800, so billions of Vietnamese dong would be added to production costs.
The Ministry of Industry and Trade announced that this year, total power production and imports would be over 133,4 billion kWh, 11 per cent higher than last year.
Of the total expected power supply, hydropower would account for about 40 per cent, thermal gas 33 per cent, and coal 22 per cent.
This year, EVN planned to import nearly 3.7 billion kWh from China, one billion kWh more than last year.
According to the National Centre for Hydro-Meteorological Forecasting, drought and water shortages in central and Central Highland regions were expected to be very serious this dry season. Water levels in Thanh Hoa and Nghe An's rivers were expected to be 15-30 per cent lower than that in previous years, and Central Highland rivers were forecast to fall 10-15 per cent.
Reservoirs to release water to parched farms
The water level of rivers will likely fall by 30 per cent this dry season, forcing hydro-electricity plants in central and Central Highlands provinces scramble to ensure a steady electricity and water supply.
The National Centre for Hydro-Meteorological Forecasting said droughts and water shortages in these areas were expected to be more serious than ever.
"River water levels in Ha Tinh and Binh Thuan provinces would be 40-50 per cent lower than in previous years and neighbouring areas would also see significant reductions in water," they said.
Dang Van Tuan, general director of the Ba Ha Hydro Electricity Plant in central Phu Yen Province, said that reservoirs in the Ba Ha River currently held only 40-60 per cent of their capacity, as the river had reached its lowest level since the beginning of the year.
The plant is producing less electricity in order to save water. However, along with the Hinh and Krong H' Nang facilities, the plant is still responsible for providing more than 20,000ha with water for farming, he said.
Director of Dong Nai Hydro Electricity Plant in Dong Nai Province Pham Van Cuc shared Tuan's concern, saying the absence of rain since October meant that the water level in Dong Nai 3 Lake was 5 metres lower than usual.
"There would be no rain forecast for the next two months, compounding the problem," he added.
And Deputy General Director of the Da Nhim-Ham Thuan-Da Mi hydro electricity plant Do Minh Loc said the plant remained responsible for supplying water to Binh Thuan and Ninh Thuan provinces, even though all of its lakes were 3-5 metres lower than usual.
Tuan said the plant had made plans with the province's Agriculture and Rural Development Department to operate reservoirs and provide water for farming.
He said the plant generated electricity for eight to ten hours per day depending on the timetable of pumping stations and water volume flowing to the reservoirs. In the case of drought, the plant will rely on the water stored in reservoirs.
Meanwhile, Cuc, director of the Dong Nai Hydro Electricity Plant, said the plant had compromised with localities to ensure enough water for their irrigation. The plant would still reach its yearly production goal of 1.3billion kWH, he said.
Loc of the Da Nhim-Ham Thuan-Da Mi hydro electricity plant said that to combat the drought, the plant would generate electricity at 50cu.m per second during rush hours, holidays and weekends.
Embattled real-estate firms leave projects in the lurch
The continuing slump in the property market, now four years old and counting, is forcing developers to sell out unfinished projects to other developers.
It is benefiting both the sellers, who can finally get a major portion of their money back, and buyers who do not have to go through the rigmarole of applying for licences and acquiring land.
Luong Tri Thin, general manager of Dia oc Dat Xanh Company, said 2013 would see lots of developers, both domestic and foreign, selling their projects.
Singaporean, Malaysian, and Japanese developers are interested in the Vietnamese real estate market, and are looking to snap them up, he said.
Japanese investors are eyeing buildings in major cities, Singaporeans are interested in housing projects, and Malaysians are looking to develop urban areas, he said.
In the second half of last year Hoang Quan Consulting Trading Service Real Estate Corporation bought four projects, three of them housing.
This year it has bought a part of the 3.53ha Nam Hiep Thanh housing project in the Phu My new urban area in Ba Ria – Vung Tau Province developed by Nam Hiep Thanh Investment Joint Stock Company.
Hoang Quan Corp also intends to buy more projects that have “soft” price to diversify their products.
Dia oc Dat Xanh announced plans to buy two apartment projects in HCM City, and wrapped up purchase of one of them at the end of last month, the 3.6ha Sunview 7 in Thu Duc District.
The VND1.2 trillion project, developed by Sai Gon General Service Company (Savico), consists of five blocks of 20 floors with around 2,000 apartments, and is meant for low-income earners.
The sellout is also happening in the north.
Thu Duc Housing Development Corporation recently sold its VND80 billion Dong Mai project in Ha Noi’s Ha Dong District.
On January 16 Vinaland, a property-focused fund, sold its project at 30 Nguyen Du Street, Ha Noi, to tobacco company Vinataba for US$3.3 million.
Song Hang Company bought a share in the Hatoco apartment project on Tran Phu Street in Ha Dong from Ba Dinh Land for VND500 billion ($23.8 million).
Firms selling last minute Tet tours by land
Travel agencies say most tours to foreign countries during the Tet holiday have been booked long ago.
Only tours by land will be sold until the last minute, they add.
Nguyen Thi Tuyet Mai, head of Communications at Fiditour, said the firm was still receiving bookings for overland tours to Phan Thiet, Ninh Chu, Nha Trang, and Buon Ma Thuot departing on the second and the fourth days of the New Lunar Year.
Tourists can also buy a trip to Con Dao Island by air on all days of the holiday, she said.
The Young Generation Company is still selling tours on land that depart on the second and the fourth day of the new year to Da Lat, Ninh Chu, Nha Trang and to Cambodia.
Tran Van Dong, director of Phu Quoc-based Huong Bien Travel Company, said room rents at two and three-star hotels on the island have increased by at least 30 per cent.
On the seashore, two-star hotels are offering rooms at VND900,000 (US$43) per night, while others are charging VND650,000 ($31) per night.
Several travel agencies have announced that they have booked rooms in various locations for the Tet festival. Travelers can contact them to get these rooms to avoid being stung by middleman, the agencies say.
The continuing slump in the property market, now four years old and counting, is forcing developers to sell out unfinished projects to other developers.
It is benefiting both the sellers, who can finally get a major portion of their money back, and buyers who do not have to go through the rigmarole of applying for licences and acquiring land.
Luong Tri Thin, general manager of Dia oc Dat Xanh Company, said 2013 would see lots of developers, both domestic and foreign, selling their projects.
Singaporean, Malaysian, and Japanese developers are interested in the Vietnamese real estate market, and are looking to snap them up, he said.
Japanese investors are eyeing buildings in major cities, Singaporeans are interested in housing projects, and Malaysians are looking to develop urban areas, he said.
In the second half of last year Hoang Quan Consulting Trading Service Real Estate Corporation bought four projects, three of them housing.
This year it has bought a part of the 3.53ha Nam Hiep Thanh housing project in the Phu My new urban area in Ba Ria – Vung Tau Province developed by Nam Hiep Thanh Investment Joint Stock Company.
Hoang Quan Corp also intends to buy more projects that have “soft” price to diversify their products.
Dia oc Dat Xanh announced plans to buy two apartment projects in HCM City, and wrapped up purchase of one of them at the end of last month, the 3.6ha Sunview 7 in Thu Duc District.
The VND1.2 trillion project, developed by Sai Gon General Service Company (Savico), consists of five blocks of 20 floors with around 2,000 apartments, and is meant for low-income earners.
The sellout is also happening in the north.
Thu Duc Housing Development Corporation recently sold its VND80 billion Dong Mai project in Ha Noi’s Ha Dong District.
On January 16 Vinaland, a property-focused fund, sold its project at 30 Nguyen Du Street, Ha Noi, to tobacco company Vinataba for US$3.3 million.
Song Hang Company bought a share in the Hatoco apartment project on Tran Phu Street in Ha Dong from Ba Dinh Land for VND500 billion ($23.8 million).
Removing economic bottlenecks
Senior economic expert Tran Hoang Ngan believes that effectively implementing Government solutions will help Vietnam’s economy develop steadily and fulfil major targets set for 2013.
In January 2013 the government issued two resolutions proposing a number of solutions for revamping business production, shoring up ailing markets and settling bad debts.
According to Ngan, a member of the National Assembly Committee for Economic Affairs, the resolutions resulted from the government’s examination of the economy’s weaknesses in 2012, taking into account the impact of the global economic recession.
The national economy only grew five percent last year, the lowest rate in 13 years and the second annual reduction in a row.
Although inflation was kept below 2011 levels, boomerang inflation and macroeconomic instability remain threats.
Businesses are struggling to clear out inventories, free themselves from bad debts and warm up the real estate market.
People, especially the poor, social policy beneficiaries and low-income earners are still living hard lives.
In the two resolutions, the government has worked out immediate and long-term solutions for speeding up economic restructuring, focusing on the process underway in State corporations, economic groups, public investment, commercial banks and the financial market.
The government underlined the need to remove economic bottlenecks restricting goods exchange, hindering the sale of large amounts of unsold goods, and limiting business production capital flows, adding to bad debt pressure and hurting employment opportunity generation.
Ngan says tax reductions, tax relaxation and tax refunds are considered effective remedies for businesses in difficulty.
To unfreeze the property market, the government agreed to offer preferential credit arrangement to house buyers, including loans with low interest rates and longer payment deadline. It also decided to re-examine and adjust property projects close to market needs.
To firm up the macroeconomic stability and control inflation, the government will apply a tight fiscal policy, practice thrift and closely monitor State budget spending.
It will also monitor market fluctuations closely, identifying it as crucial to inflation containment in Vietnam.
The senior economic expert concurs that these solutions meet the economy’s current practical requirements.
Rice farmers in Mekong Delta face depressed prices
This year, income of rice farmers in the Mekong Delta has dropped by 50 percent compared to last year, as traders and enterprises refuse to raise prices.
Productivity in the winter-spring rice crop has also fallen by at least 20 percent due to poor quality seeds.
With less flooding this year, farmers in the Mekong Delta sowed early and are already beginning to harvest the 250,000 hectares of paddy crop, much sooner than in previous years, while traders and enterprises prepare for Tet.
Sales though are slow and businesses are taking full advantage of the situation and offering depressed prices.
As far as farmers and the local governments are concerned, Truong Thanh Phong, Chairman of the Vietnam Food Association (VFA), assured purchase of all farmers’ rice stock during Tet. Phong expects exports to improve in March which may increase the price of rice.
The winter-spring crop is the main crop of the year and farmers need to make profits after failure of two earlier seasonal crops. Accordingly, the government and VFA should adopt new policies to stabilize price and secure farmers. This same issue has been raised many times in the past.
Binh Duong exports surge in January
Enterprises in southern Binh Duong province have generated 1.3 billion USD from exports in the first month of 2013, marking a 70 percent rise year-on-year.
According to the Binh Duong Association for Exporters, turnover of key export items such as wood products, textiles, footwear and electronics increased by 15 to 30 percent during the month.
Association chairman Pham Van Xo said: “This not only a positive beginning but also provides impetus for the rest of the year.”
“This year, Binh Duong will strive for annual export growth of between 20 to 25 percent,” Xo said.
In another bright sign Xo said all members of his association had already inked export contracts for the whole year with foreign counterparts, with garment and leather footwear sectors winning the largest deals.
The provincial enterprises this year will focus on exporting quality affordable products.
Experts forecast the province’s exports would remain stable this year as the EU and US economic are on tract for recovery and partner in these markets are targeting the cheap goods markets where Vietnam has considerable strength.
Last year, Binh Duong posted an export turnover of 12.13 billion USD, representing a year-on-year increase of 16 percent as a result of concerted efforts from provincial authorities and enterprises in fostering trade promotion and expanding export outlets, according to the provincial official website.
It is now home to 1,725 exporters, shipping products to 143 countries and territories including the US, EU, Japan, the Republic of Korea and China.
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