State Bank raises US dollar price

The State Bank of Vietnam (SBV)’s selling and purchasing prices were officially set at 21,350 VND and 21,600 VND to one US dollar on January 12, up 150 VND and 200 VND respectively.

The move was made in an effort to slow the exchange rate’s decline after the inter-bank rate was raised by 1 percent on January 7, as well as to support exports.

In response to the State Bank's fixed rate, selling prices are ranging from 21,300 VND to 21,320 VND, with purchasing prices between 21,380 VND - 21,385 VND, to one US dollar at commercial banks such as Techcombank and Vietcombank.

The State Bank is prepared to buy and sell US dollar in a bid to stabilise the foreign exchange market.

More banks offer low-cost loans for home buyers

An additional eight commercial joint stock banks will join the government’s 30 trillion VND (1.4 billion USD) housing credit stimulus scheme, improving access to loans for low-cost apartments.

New low-cost loan providers include the Vietnam Export-Import Bank (Eximbank), the Bao Viet Commercial Bank, the Saigon Commercial Bank (SCB), the Vietnam Public Commercial Bank (Pvcombank), the Tien Phong Bank (TPBank), the Oriental Commercial Bank (OCB), the Vietnam Prosperity Bank (VPBank), and the Southeast Asia Bank (SeABank).

The eight banks will join five commercial banks with half their capital owned by the State in the scheme, including the Vietnam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Bank for Industry and Trade (VietinBank), the Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Mekong Housing Bank.

Launched in June 2013, the credit package offers loans with a maximum interest rate of 5 percent to individual borrowers for no longer than 15 years.

Vietnam, Italy share banking experience

Policies to stabilise the monetary market and finance small- and medium-sized enterprises (SMEs) topped the agenda of discussions between visiting Vietnamese financial and banking officials and representatives from the Association of Banking in Italy (ABI) in Rome on January 9.

The host highlighted the role of the central bank and commercial banks in supporting SMEs and support industry as well as policies to monitor the banking system.

To stabilise monetary policies and better support SMEs, the Italian side suggested a close coordination between banks, enterprises and relevant agencies, adding that support activities should focus on measures to prevent crises, improve SMEs’ capacity and increase their access to capital sources.

On behalf of the Vietnamese delegation, Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed what shared by the Italian side will be valuable experience for Vietnam , especially when the country is restructuring the banking system in general and the financial system in particular.

During the visit, the delegation is scheduled to work with Italy’s central bank, commercial banks and Ministry of Economic Development.

More trade opportunities at home, abroad in 2015

The newly-approved 2015 national trade promotion programme worth 100 billion VND (4.7 million USD) has been highly acclaimed by businesses, bankers, and localities across the country.

The programme covers 212 projects involving the expansion of markets at home and abroad, trade promotion in economic zones, training for businesses, cooperatives and marketing organisations.

It will also focus on the domestic market, including establishing distribution channels in rural, mountainous and border areas, which is in part to spread the campaign “Vietnamese prioritise Vietnamese goods”.

During a conference in Hanoi on January 9 to review the 2014 national trade promotion programme and launch tasks for 2015, Deputy Minister of Industry and Trade Do Thang Hai urged firms to seize opportunities offered by upcoming free trade agreements with the European Union, the Republic of Korea, the Union of Customs of Russia, Belarus and Kazakhstan, among other deals.

Reviewing the 2014 performance, Deputy Director General of the Vietnam Trade Promotion Agency (Vietrade) Ta Hoang Linh said his agency gave forecasts on domestic and foreign markets and held trips to exhibitions and fairs abroad for Vietnamese enterprises and vice versa.

It also offered assistance to businesses, especially those engaging in agro-forestry-fisheries and the processing industry, in seeking additional export markets and expanding local market shares, he added.

PM okays industrial cluster plan

Prime Minister Nguyen Tan Dung has just approved a programme to develop and upgrade industrial clusters and value chains for products with competitive advantages in five sectors.

The sectors are electronics and information technology, textiles, food processing, agricultural machinery, and tourism and related services.

By the end of 2015, the programme aims to complete the task of identifying and studying potential regions with industrial clusters and products with competitive advantages so that they can be marked for attracting investment and kick-starting pilot projects.

By 2020, it is expected that the pilot projects will be operating in the potential regions with comprehensive mechanisms and policies to attract investment, improve interconnectivity and human resources, and apply scientific and technology advances to improve value chains and industrial cluster models.

Industrial clusters will be developed and upgraded in cities and provinces based on products that the localities enjoy advantages in making. Some examples are consumer electronics in Binh Duong; visual electronics in Thai Nguyen, Bac Ninh, Bac Giang, Hanoi and Hai Duong; and IT and IT-related services in Hanoi, Ho Chi Minh City and Da Nang.

Textile industrial clusters will be based in Thai Binh, Nam Dinh, Ninh Binh and Bac Giang while garment ones will be located in HCM City and the central region.

The programme will develop seafood processing clusters in the Mekong Delta, and those for seafood and agricultural products along coastal, Central Highlands provinces and the northern midlands.

Agricultural machinery clusters will be developed in Hanoi, Hai Duong, Hai Phong, HCM City, Long An and Dong Nai.

The country will also establish tourism clusters, like the marine eco-tourism cluster in Hai Phong and Quang Ninh; the sea-resorts and cultural heritages cluster in Da Nang , Hue and Quang Nam ; and water-sports, entertainment and rural discovery cluster in Khanh Hoa and Binh Thuan.

Tourism clusters in Binh Dinh, Phu Yen and Ninh Thuan will also lean towards eco-tourism with their well-preserved landscapes, while HCM City and Ba Ria-Vung Tau will focus on developing services and entertainment industries.

To implement the programme effectively, two sets of solutions have been proposed.

Policy solutions will target attracting investment, applying sci-tech advances and developing human resources.

The other group of solutions will carry out projects in several areas. Some of these will increase the capacity of sci-tech research institutes, improve connectivity between training facilities and businesses, upgrade logistics networks to improve regional links in production and procurement, and improve rice processing in the southern region.

Five-star hotels shine in Hanoi

Hanoi’s hotel market, particularly the five-star segment, performed well through peak season in the last quarter of 2014, reported the international real estate service firm Savills Vietnam.

The occupancy rate rose by 3 percentage points and the average room revenue (RevPAR) increased 3 percent from 2013. The five-star segment’s occupancy rate experienced a 10 percentage point increase alone.

Overall, five-star hotels accounted for 56% of the market share while four-star hotels contributed the least to the total revenue.

An additional 30 hotels will be opening in 2015 onwards, nearly 72 percent of which are expected to be five-star quality. The new facilities will offer approximately 5,000 rooms.

According to the Hanoi Department of Culture, Sports and Tourism, a total of 18.4 million tourists arrived in Ha Noi last year, an 11 percent increase from the previous year. Three million of which were international visitors, representing a 16 percent increase from 2013. The volume of Korean, English, American and French tourists has continued to increase, peaking at a 50 percent annual growth.

New record for auto sales in 2014

As many as 157,810 automobiles were sold in 2014, representing the highest number in the recent five years of annual auto sales in Vietnam, according to the Vietnam Automobile Manufacturers’ Association (VAMA).

The figure represented a 43 percent increase from 2013. Of them, cars surpassed 100,000 units, reflecting a 43 percent soar while trucks reached 57,371 units, a sharp 42 percent increase.

While the sales of locally-assembled automobiles were 32 percent higher than last year, the industry saw a dramatic 83 percent surge in sales of imported vehicles.

In December alone, customers bought a total of 20,208 vehicles, up 27 percent against last month and 53 percent above the same period last year, making it the 21st month with increased sales and the highest sales month over the last three years.

Truong Hai and Toyota were the two most popular manufacturers last year, with Truong Hai selling 42,399 cars and Toyota following closely behind with 40,820 vehicles.

Ford came in third place with 13,988 units, followed by Honda with 6,492 cars and GM Vietnam’s 5,134 autos.

Long An border gate zone approved as Mekong Delta’s economic hub

The Prime Minister has approved a broad plan for developing the Long An border gate economic zone to 2030, with the hopes of making it one of the Mekong Delta region’s industrial, commercial and service hubs.

The zone, located in the Mekong Delta province of Long An and bordering the Cambodian province of Svay Rieng, will extend across 13,080 hectares of land and include an international border gate, Binh Hiep, and a secondary border gate, Long Khot.

According to Decision No 07/2010/QD-TTg, established on January 25, 2010, the zone will cover seven communes and one town.

By 2020, the zone is intended to have a population of 58,000 people, with 30,200 living in urban areas (52 percent). This is expected to increase to 105,000 in total and 70,000 living in urban areas by 2030.

The zone will have 425 hectares set aside for industrial parks, 146 hectares for small-scale industrial parks, and another 54 hectares for mini industrial areas.

2015 business start-up programme launched

The Vietnam Chamber of Commerce and Industry (VCCI) on January 10 honoured winners of the business start-up competition 2014 and launched the 2015 business start-up programme.

The programme is to bring business projects to life through the development of networking and training, consultancy and investment linked to building a community of highly-capable businesspeople.

Addressing the launch ceremony, VCCI Chairman Vu Tien Loc called for more incentives for start-ups since the Vietnamese enterprises are in a small number with not a high quality.

The programme will be a useful playground for young people nationwide who are interested in running a business and contribute to building a creative business community in the future, Loc added.

Dam Quang Thang, General Director of Vietnam Agricare company, member of the competition’s review board, held that many projects are feasible and applicable.

The first prize of the 2014 competition went to the A-seedling project by students from the Vietnam Institute of Agriculture.

The San Tuyen tea production and distribution project and the cochineal breeding project won second prizes.

Vietnam attends 7th Vibrant Gujarat Global Summit

Vietnamese Ambassador to India, Ton Sinh Thanh attended the 7 th Vibrant Gujarat Global Investment Promotion Summit, which opened on January 11 in Gardihinaga city, Gujarat state, India.

The Vietnamese diplomat announced his intent to meet with the Association of Exporters and Importer (EXIM Club) to examine collaborative potentials between the two countries’ economies, as well as discuss national trade cooperation specifically with the Gujarat state.

Event participants included Indian Prime Minister Narendra Modi and numerous high level officials and representatives from over 90 countries and prominent enterprises.

Delegations will focus on fostering sustainable development, creativity, skills development, knowledge sharing, and systematic work initiatives within the state.

The event presents opportunities for other nations to develop business ties with India and forums for international policy-makers, industrial leaders, specialists, and well-known academics to exchange views.

PM Modi will meet with high-level leaders and policy-makers from the US, the UK, Singapore, Poland, and Bhutan during the event to discuss joint efforts and mutual economic, national defence, and anti-terrorist interests, among others.

The biennial event will run from January 11-13, sponsored by the US, Japan, Australia, Canada, the Netherlands, Singapore, South Africa and the UK.

Tien Giang looks to produce clean eggs for export

The Mekong Delta province of Tien Giang plans to foster advanced technology applications to produce clean and high-quality poultry eggs in an attempt to boost exports.

The province currently houses about 1.5 million quails and one million black chickens, among other chicken varieties farmed under strict food security requirements to produce quality eggs for export.

One breeding farm, owned by Phan Van Tieu in Phu Kiet commune, Cho Gao district, has 4,000 black hens that can produce up to 1,200 eggs each day.

According to the Director of the Southern Centre for Policy and Strategy for Agricultural and Rural Development Nguyen Van Giap, their centre has provided breeding skill training for 60 local households. Of these, eight have been selected to farm between 1,000-2,000 black chickens for eggs as a trial, in order to examine export potential in Japan, Australia, and the Republic of Korea.

After a four-year effort to meet all requirements of the strict market, the Nguyen Ho quail breeding farm in Long An commune, Chau Thanh district has joined with the fruit export company Tien Giang Food Corp to export 12 million canned quail eggs to Japan since late 2013. With over 60,000 quails, the partnership is currently exporting 2 million canned quail eggs to Japan each month.

Deputy Director of the provincial Department of Agriculture and Rural Development Le Minh Khanh said there is a huge demand for canned quail eggs in Japan, and the Nguyen Ho farm is among the two local facilities that meet the Japanese partner’s strict requirements.-

Mekong Delta targets 13 percent rise in per capita income

The Mekong Delta forecast a per capita income of 43 million VND (2,047 USD) in 2015, a 13.1 percent increase from 2014. The city of Can Tho is expected to lead this increase with an income of 79.3 million VND (3,776 USD).

To achieve this goal, the 12 regional provinces and Can Tho city intend to restructure the agriculture, industry, and trade sectors to raise their value above 1,308 trillion VND (62.28 billion USD), which would represent an annual increase of 9.4 percent. Development in these sectors would be designed to thereby stimulate a rise in individual income, said Nguyen Phong Quang, Vice Chairman of the Steering Committee for the Southwest Region.

Specifically, local provinces will form farming areas dedicated to rice, fruit trees, and aquaculture products with high economic values and efficient productivity. Nearly 4.2 million hectares of land will be zoned for rice cultivation and 310,000 hectares for fruit trees, with an additional 800,000 hectares of water surface dedicated to aquatic products.

With these designated zones, the Mekong Delta expects to harvest 25 million tonnes of rice with 80 percent deemed high quality, 3.7 million tonnes of aquatic products, and 360,000 tonnes of fruit in 2015, bringing the region’s agricultural production value to 94 trillion VND (4.47 billion USD), a 5 percent increase from 2014, Quang said.

Efforts will also be made to strengthen the local processing industry and bring its industrial production value to 498 trillion VND (23.7 billion USD) –about 59.7 trillion VND higher than last year—he added, continuing that eight coastal provinces will focus on processing aquatic products and animal feed.

Meanwhile, coconut processing will be further developed in Ben Tre, fruit processing will be facilitated in Tien Giang, Vinh Long, and Can Tho, and sugar production will be fostered in Hau Giang, Soc Trang, Tra Vinh, and Long An.

Quang also commented the region intends to generate a 2015 regional trade value over 650.2 trillion VND (30.96 billion USD), up 16 percent from 2014, and an export revenue of 11.9 billion USD, a 7.5 percent annual increase.

They will assist 80,000 businesses to expand their presence in the domestic market through wholesale and retail channels as well as trade fairs. Local exporters will receive assistance in maintaining their shipments to traditional markets like the US, the EU, China, Japan, and the Republic of Korea with additional opportunities to join in a number of trade promotion activities and fairs in Russia, Germany, Australia, and the United Arab Emirates this year, Quang noted.

Further, the provinces will provide vocational training to 210,000 people across 369 educational establishments. Up to 11,000 small-scale projects will be implemented, creating jobs for 110,000 individuals and raising the employment rate in 2015 up 6 percent to more than 410,000 workers.

The Mekong Delta will also offer mortgage loans worth over 350 trillion VND (16.67 billion USD) to 254,000 low-income households, coupled with effective social welfare programmes, he said. Can Tho city also held the highest per capita income across the Delta in 2014 with 70.2 million VND (3,342 USD), compared to the regional average of 38 million VND (1,809 USD) – 7.6 percent higher than 2013.

The Mekong Delta has a total area of around 40,000 square kilometres and is home to a population of 18 million. It is a major aquaculture region and the largest rice production hub of Vietnam.

Hanoi cuts procedural time for enterprise establishment

Hanoi has shortened the processing time for establishing an enterprise from five to three days as of January 1.

The city is Vietnam's first locality to implement this reduction. However, other localities are also required to do so under the new Law on Enterprise adopted by the National Assembly in 2014.

"The city has taken the initiative in implementing this regulation. This will help attract more investors as they will find it more convenient to establish enterprises," Deputy Minister of Planning and Investment Dang Huy Dong said.

"I am sure that the city's competitiveness index will improve remarkably thanks to this move. Enterprises are the economy's backbone and they have the right to enjoy the best business conditions," Vietnam Investment Review reported.

Trinh Thi Ngan, head of the Hanoi Small and Medium-sized Enterprises Association's Consultancy Board, expected the move to "greatly benefit enterprises," especially as they continued to face "increasing difficulties."

However, she said the department needed to "clarify procedures and business incentives" to make it easier for companies to complete the procedures.

More than 13,400 enterprises were established in the capital in 2014, equal to 96.5 percent of the 2013 figure. Charter capital totaled 98.43 trillion VND (4.7 billion USD), down 11.4 percent on the year.

Meanwhile, 735 enterprises went bankrupt, up 1.5 percent, and more than 2,400 enterprises registered to suspend operations, down 11.5 percent.

The number of enterprises changing their business type was nearly 32,300, up 28 percent. Two enterprises had their business licences revoked for submitting fake business registration dossiers.

In 2014, the city attracted 418 new foreign invested projects with a total registered capital of nearly 1.4 billion USD, up 26 percent on the year and 7.4 percent more than the target of 1.3 billion USD.

Local firm to supply steel structures for suspension bridge

Thanh Long Joint Stock Company will become the first local firm to supply large-sized steel structures for a cable suspension bridge project in Vietnam since the work had been procured mainly by Chinese and Japanese producers.

It secured a deal with the Republic of Korea’s joint venture of Hanshin Engineering & Construction and GS Group in Ho Chi Minh City on January 9 to be supported in technology and consultation in producing large-sized steel structures contracted.

The company will manufacture structures requiring about 7,000 tonnes of steel in total for Vam Cong cable suspension bridge, one of the four biggest and most modern in Vietnam.

The 2.97km-long Vam Cong bridge, is estimated to cost 271 million USD, contributed by the RoK’s ODA and Vietnamese corresponding capital.

Spanning the Hau River, it will connect Dong Thap province with Can Tho city, establishing a link between the western area and the central Mekong Delta, thus lessening traffic load on National Road 1A.

Consumer goods market not reacting to fuel price cut

Despite a plunge in fuel prices since late July, prices of consumer goods have remained consistent, dissuading buyers and limiting purchases.

The prices of vegetables, meat and fish in Hanoi went unchanged from the fourth quarter of 2014 to January 8, 2015, with beef at 170,000 – 200,000 VND (8-9 USD) per kilogram, chicken at 100,000 – 120,000 VND (4-6 USD), and prawns at 400,000 – 460,000 VND (19 – 21 USD) per kilogram.

Although vegetables initially experienced a 10-20 percent decrease in prices, costs have now returned to their higher rates recorded in late 2014, including tomatoes that cost 15,000 VND (0.70 USD) per kilogram or watercress sold at 5,000 VND (0.20 USD).

On the contrary, the transport market has responded to the fuel price decline with nearly 80 taxi operators and 60 transport firms reducing their costs early this year by 3- 15 percent, said Chairman of the Hanoi Transport Association Bui Danh Lien.

Nguyen Manh Tuan, Deputy Director of My Dinh bus station, said many operators have decreased their fares by 4-20 percent.

Within the farming market, low petrol prices have had a marginal impact on cattle feed with an incremental price drop between 0.5 and 1 percent in the fourth quarter 2014, said Chairman of the Vietnam Feed Association Le Ba Lich.

Chairman of the Hanoi Supermarket Association Vu Vinh Phu has called on State management agencies to rearrange the supply chain to ensure goods are made available at affordable prices, especially during volatile times.

Since last July, fuel costs have declined by roughly 8,000 VND per litre (0.3 USD).-

Business start-up 2015 launched

The Vietnam Chamber of Commerce and Industry (VCCI) on January 10 held an awards ceremony for winners of the Business Start-up Competition 2014 and launched the Business Start-up Programme 2015.

The prorgamme is aimed at realizing business projects through the development of a business start-up network and accelerating training, consultancy and investment link to build a community of strong and professional business people.

VCCI Chairman Vu Tien Loc said Vietnamese businesses remain in a small number with not a high quality. So, it is essential for the Government to devise support policies for the setting up of more businesses and improvement of their quality.

The Business Start-up Programmes together with other VCCI’s projects on start-up training, business development and competitiveness improvement have proved very helpful for young businesses in Vietnam.

In the framework of the Business Start-up Programme 2015, feasible projects will be assisted by VCCI in their implementation and long-term and sustainable development process, Loc underscored.

This will be an useful playground for young people nationwide to start-up business and contribute to building a creative business community in the future, Loc added.

Meanwhile, Dam Quang Thang, General Director of Vietnam Agricare Ltd, member of the competition’s consultancy board held that many projects are applicable.

The first prize of the 2014 competition went to the A-seedling project of students from the Vietnam Institute of Agriculture. The San Tuyen tea production and distribution project and the Cochineal breeding project won second prizes.

Excess capacity clouds the outlook for steel sector in 2015

Integration and growth are the new buzzwords for the steel sector in Vietnam as business enterprises look at global markets not just to sell steel, but also to acquire the raw materials to fuel further expansion.

In 2014, the steel sector obtained a growth rate of 12% thanks to active support from the Government and great effort by enterprises within the sector.

Steel output jumped 10-15% to hit an all time record high of 12 million tonnes in 2014, meeting both domestic demand and exports, according to statistics from the Ministry of Industry and Trade.

Welded steel pipes had a particularly strong year. In spite of a US anti-dumping lawsuit on welded steel pipes and welded stainless steel pressure pipes, enterprises throughout the sector report higher growth compared to previous year.

Welded steel pipe output shot up 40% on-year to hit 1.3 million tonnes, 1.1-1.2 million almost all of which had been consumed by year’s end.

The favourable results have been attributed to a well implemented State policy to reenergise consumption. The restarting of many construction projects during the year in conjunction with a VND30 trillion State stimulus package helped jump-start the demand for steel.

In particular, an inter-circular effective June 1, 2014 issued by the Ministry of Industry and Trade and the Ministry of Science and Technology redefined the standards for the quality of domestic and imported steel.  The circular was instrumental in curtailing trade fraud.

Vice Chairman of the Vietnam Steel Association Nguyen Van Sua said high growth is evidence that Vietnamese steel can be competitive in the global marketplace.

Sua cited iron sheet as a prime example of the success of the sector for 2014, for which Vietnam led the world in production at 2.7-2.8 million tonnes, far outpacing Thailand output at 2 million tonnes.

The investment that the sector made in technology and better management efficiency over the past few years returned big dividends in 2014 and most certainly would continue to pay off in 2015, Sua said.

Leading market analysts have forecasted that the steel sector will face more difficulties in 2015 as new trade pacts come into effect and price competition intensifies as tariffs are reduced.

They also anticipate anti-dumping lawsuits by enterprises around the globe will pick up as it is becoming increasingly popular to use these types of legal maneuverings as trade protection measures to avoid direct and fair competition.

VSA Chairman Pham Chi Cuong said governmental agencies at all levels should pay more attention to the steel industry by devising specific measures including adjusting the sector’s master development plan and balancing supply and demand.

They should also initiate measures, including anti-dumping lawsuits if appropriate; to prevent low quality imported products from entering the domestic market to ensure healthy competition among businesses.

VSA has forecasted the steel sector would achieve growth of 11.8% in 2015. To obtain the target, VSA has proposed relevant agencies recheck investment projects to eliminate inefficient ones to avoid a supply and demand imbalance.

It is incumbent upon the government to open door in 2015 to allow private enterprises in the steel sector to get involved in State-owned projects to increase demand and help keep pace with the increase production, Cuong concluded.

Vietnam Trade Office issues internet scam alert

Vietnamese business enterprises have been put on alert by the Vietnam Trade Office in the Netherlands over instances of internet scams and are urged to be cautious of fraudulent activity.

The warning follows revelations that a Vietnamese enterprise recently was defrauded by a fake Dutch company – New Wells Commodities – whose internet website address is www.newwellsco.com.

The Vietnamese company placed an order for 40-50 containers of Heineken beer a month and paid New Wells Commodities a 30% deposit in advance. To add insult to injury the company then paid transport fees.

However, the shipment never arrived and upon further investigation by the Vietnam Trade Office there is no New Wells Commodities and the entire transaction was a sham replete with fake addresses.

 The Trade Office has advised all local businesses to be cautious and ask its representatives for assistance before paying for any large shipment of goods upfront before receipt and inspection of the items.

Nearly 158,000 automobiles sold in 2014

157,810 automobiles were sold in 2014, making the total turnover up by 43% against the previous year, of which cars rose by 43% to 100,000 and trucks by 42% to 57,371 units, according to the Vietnam Automobile Manufacturers Association (VAMA).

VAMA reported that sales turnover of domestically assembled automobiles surged by 32% while imported units rocketed 83%.

In December 2014 alone, 20,208 vehicles, including 13,221 cars and 6,987 trucks were sold, a year-on-year rise of 53%. This is the 21st month sales turnover that hit a record high over the past 3 years.

The automobile market also witnessed a fierce competition between Truong Hai (Thaco) and Toyota to lead the sales turnover.

Local business imports up to 3,000 cows from Australia monthly

Trung Dong Ltd Company in Bien Hoa City, Dong Nai province imports around 1,500-3,000 cows from Australia worth US$1.5-3 million each month.

The company’s Director Truong Thi Dong said each month the company supplies around 600-1,200 tonnes of fresh beef to domestic supermarkets.

The cows are granted certificates of veterinary inspection by the Australian Quarantine and Inspection Service (AQIS) before being shipped to Vietnam.

After the cows arrived at Go Dau Port, the Department of Animal Health under the Ministry of Agriculture and Rural Development (MARD) will fulfill all procedures relating to veterinary quarantine services. And then the cows will be transported to a breeding farm in Tan Hoa ward, Bien Hoa City.

Doosan Vina sends filters to Chile

Doosan Heavy Industries Viet Nam Company (Doosan Vina) has shipped reverse osmosis (RO) desalination filter systems to Chile, following the Escondida Water Supply project agreement signed last February.

The Quang Ngai-based company told Vietnam News yesterday that this was the first shipment of the 1,705-tonne filter equipment to the Escondida copper mines, located in northern Chile, for supplying 220 million litres of water for 550,000 people each day.  

As planned, the second round of cargo will be shipped to Chile on January 18, and the last units and facilities of the filter system will be exported from February 15 to April 30. The company is the first producer of RO desalination filter systems in Viet Nam.

Vinatex holds first shareholder meeting following equitisation

The first shareholder meeting of the Viet Nam National Textile and Garment Group (Vinatex), which is preparing to operate as a joint-stock company, was held on Thursday.

During the meeting, Le Tien Truong, general director of Vinatex and the representative of State capital in the group, announced that the firm would offer initial shares in 2017.

The group also appointed people to the management board. Among seven members of the board, four are representatives of the State capital, while the other three are property giant Vingroup's (VIC) Le Khac Hiep as vice chairman, VID Group's Le Dinh Ngoc and VinaCapital's Don Lam.

Meanwhile, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said that by the end of this year, the group would fully divest from 37 subsidiaries, while increasing investment in some of the member companies.

Last year, Vinatex's revenue hit VND51 trillion ($2.3 billion), rising 13 per cent compared to 2013. It has received enough orders for the first half of this year.

From 2015 to 2017, Vinatex aims to earn revenues of VND1.26 trillion (US$59.1 million), VND2.68 trillion ($125 million) and more than VND3.65 trillion ($171 million); and net profits of VND288 billion, VND343 billion and VND412 billion respectively.

Vinatex has been equitised at a time when the textile and garment industry faces an influx of both opportunities and challenges, with free-trade agreements involving South Korea, the Russia-Belarus-Kazakhstan Customs Union and the Trans-Pacific Partnership (TPP).

In September, investors purchased more than 90 per cent of its initial public offering, nearly half of which were bought by foreign investors.

OCB freezes accounts of Ocean Hospitality

The Ocean Bank (OCB) blocked the accounts of Ocean Hospitality on January 7, two days after it did the same with the hotel operator's parent firm, the Ocean Group.

Ocean Hospitality Chairman Ha Trong Nam shared the development on the company's website and in despatches sent to the State Securities Commission and the Ha Noi Stock Exchange on January 8.

The Ocean Group said in an online statement on Thursday that the account freeze is temporary and has been implemented to aid police investigations into allegations of lending operation violations at the bank, following a criminal prosecution decision issued by the authorities last October.

"All operations and transactions of the Ocean Group are still taking place normally and are under our control," the notice said, adding that the company's accounts at other banks and credit institutions are also operating normally.

"Currently, we are working with the Ocean Bank and relevant agencies to clarify this blockade request, and will notify you as soon as possible," it told customers, partners and shareholders.

Former Ocean Bank deputy general director Nguyen Van Hoan was arrested on December 22 for allegedly acting as an accomplice of Ha Van Tham, who was the former chairman of the bank and was arrested on October 24.

The police found that Tham had signed a decision approving a VND500 billion (US$23.4 million) loan to the Trung Dung Commercial Ltd Company, even though he was aware that the firm's loan application was unsatisfactory.

Financial reports for the third quarter of 2014 revealed that on September 30, the Ocean Group had deposited over VND407 billion ($19.38 million) out of its total VND550 billion ($26.19 million) deposited assets, at the Ocean Bank.

The company borrowed nearly VND655 billion ($31.19 million) from the bank, or 22 per cent of its total debt. It is also among the largest shareholders of the bank, owning a 20 per cent stake in the bank.

The Ha Noi-based Ocean Group has a charter capital of VND3 trillion ($142.86 million) and deals in banking and finance, real estate, hotel and media. It reportedly owns nearly 67 per cent of Ocean Hospitality's equity.

On January 9, Ocean Group shares hit dived, closing down 0.4 points at VND6,300 ($0.3) per share on the HCM Stock Exchange.

Ocean Hospitality shares also saw no trading, with their reference price anchored at VND25,100 ($1.2) per share on the Ha Noi Stock Exchange.

The accounts of the Pacific Asset Management Company were also blocked at the Ocean Bank on January 5 following a police order. The firm reportedly holds a 5.97 per cent stake in Ocean Hospitality and is chaired by Ocean Hospitality Deputy General Director Le Minh Thanh.

Investors withdraw from parking lots

Nguyen Huu Tin, deputy chairman of the HCM City People's Committee, has instructed the Department of Transport and other relevant agencies to work together to draft preferential policies for attracting investment in underground parking lots in the downtown area.

His reaction came soon after two investors wanted to pull out of the projects citing low returns on huge investments.

The Viet Nam Urban and Industrial Zone Development Investment Corporation asked to withdraw from a proposed project to build a lot under Tao Dan Park in District 1 at an estimated cost of VND1.4 trillion (US$67 million).

The Indochina Group, the other would-be investor seeking to pull out, is to build under the Hoa Lu stadium at a cost of VND1.6 trillion.

Tin also called on related authorities to review parking space in downtown public places and high-rise buildings to calculate how much space is available – to tweak the designs of the proposed underground lots and determine their parking rates.

Meanwhile, work on the lot under District 1's Le Van Tam Park will finally start at the end of April following a four-year delay while procedures are being wrapped up for the one under Trong Dong Theatre.

Based on a 2008 master plan, the city is set to build eight underground lots in District 1.

Highway to join provinces

A project to connect the central provinces of Nha Trang and Phan Thiet with a VND46.3 trillion (US$2.1 billion) highway is awaiting the Ministry of Transport's approval.

Once integrated into the North-South highway network, the Nha Trang-Phan Thiet highway would shorten the travel time to Khanh Hoa, Ninh Thuan and Binh Thuan provinces.

The project would be completed in two phases, beginning with a four-lane highway designed for a 100 km/h speed limit and then adding two lanes, according to Project Management Unit 6 (PMU 6).

If the Ministry of Transport gives it a green light, the project would start in the third quarter and finish in 2020. The highway would have 11 intersections, 83 tunnels bypassing residential areas, 97 bridges and a 2km tunnel through Nui Vung Mountain.

Fourteen autonomous and semi-autonomous toll stations would be set up along the highway as well as eleven rest stops, two maintenance workshops, four repair shops and a highway management centre.

Guidelines issued on selling public firms

Prime Minister Nguyen Tan Dung has signed Decree128/2014/ND-CP regulating the sale of wholly State-owned enterprises (SOEs).

According to the decree, the price of a sale will be defined in accordance with the method of selling (auction or direct sale), payment method, registered price and the number of employees that the buyer will continue to hire, with the price being no less than the reference price.

In the event that two buyers seek to purchase a SOE, the company will be sold through auction with a commitment to handle labour issues. If there is only one buyer, the method chosen will be direct negotiation.

The proceeds from the sale will be contributed, in part, to the State budget, with the amount being equivalent to the value of the land use rights. The remaining money will pay for the costs of preparations of the sale, resolving debts that the buyers do not inherit and implementing policies for employees.

Other destinations for money received from the sale include corporate arrangement support funds.

The decree will take effect in March and is designed for the purpose of moving forward with the process of restructuring and equitising SOEs based upon Government guidelines.

Land prices soar in Binh Duong Province

Land prices have recently shot up by 30-40 per cent in the southern province of Binh Duong after a series of major housing and other property projects got under way there, according to analysts.

The projects include the US$1.2 billion Japanese-invested Tokyu Binh Duong Urban Area, N.H.O's VND600 billion First Home Premium, and Gloucco Land's The Canary.

Besides, Singapore's VISP has begun work on the 4,300ha Binh Duong Industry-Service-Urban Complex, which has reportedly helped attracting foreign investors to Binh Duong.

The analysts said that since 2014 the province's property market has showed distinct signs of recovery.

Land prices have risen consistently, particularly near the Binh Duong Industry-Service-Urban Complex, which along on major routes to HCM City and provinces in the south-east and Central Highlands regions.

Explaining the Binh Duong market's early recovery, they pointed to the fact that the province has been in the forefront of attracting domestic and foreign investors.

Last year it attracted $1.53 billion in foreign investment, a majority of which flowed into the property market.

To date the province has attracted FDI worth $20 billion.

Strong development of social and transport infrastructure is one of the main reasons for Binh Duong's attractiveness for foreign investors.

It has an excellent road network that makes it very easy to get around for business purposes.

In addition to important highways like DT 742, Vo Van Kiet, Nguyen Van Linh, and National Highway 13, Binh Duong also plans to develop seven metro routes that will connect the province with HCM City and other cities and provinces in the Southern Key Economic Zone.

The provincial administration's priority for investment in clean industrial parks such as Hi-tech Mapletree, VSIP I, and VSIP II has also made a significant contribution to attracting foreign investors.

As for social infrastructure the province has all kinds of services and facilities of good enough quality to meet even foreigners' demands.

They include schools (Kindleworld International School, Mien Dong International School and Viet-Duc International University), hospitals (Binh Duong General Hospital and the 512 General Hospital), major malls and supermarkets (Metro, Saigon Coop, Lotte Mart, Aeon, Big C, Citi Mart) and parks.

New Binh Duong City would become a centrally-administered city by 2020, another reason for the province to become attractive to foreign investors, especially those in the property sector, the analysts said. 

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