Logistics firm targets 13% profit

Transimex-Saigon Corporation, which specialises in freight forwarding, container and barge transport, warehousing and port services, and others, hopes to increase its pre-tax profit by 13 per cent this year to VND125 billion (US$5.9 million).

At its annual shareholders meeting in HCM City yesterday, the company also agreed to pay a dividend of between 18-21 per cent. It paid 18 per cent last year.

The HOSE-listed firm reported a pre-tax profit of VND110.7 billion ($5.24 million) last year, a 16 per cent increase, on revenues of VND398.3 billion, said its chairman Bui Tuan Ngoc.

Big C launches e-commerce website

The French-owned supermarket chain Big C on Friday launched an online shopping portal under the Cdiscount brand.

Lancelot Salavert, e-commerce director of Cdiscount Viet Nam, said Cdiscount.vn initially would focus on four product categories, technology, home, health and beauty care, and mothers and babies, with about 7,000 products at good prices.

The young e-commerce market in Viet Nam offers great potential for players in the field, he said.

Despite forecasting fierce competition, Cdiscount.vn has set a target to become one of the leading e-commerce pages in Viet Nam in two year's time.

LAS production plant opens

Soft Industry Corporation (SIC) has opened its LAS production plant in Dinh Vu Industrial Zone in northern Hai Phong City.

The plant was built on 1.5 ha of land with investment capital of US$6.6 million. At the height of production, 22,000 tonnes of products will be processed for the domestic detergent industry and export market.

Italy's Desmet Ballestra supplies the plant with equipment.

SIC was established by Japan's Toyota Tsusho, Toyota Tsusho Viet Nam, and Formusan Union Chemical from Taiwan. Its domestic partners include Vico Company Ltd and My Hao Joint Stock Company.

The plant is one of the 11 projects funded by Japanese investors in the Dinh Vu Industrial Zone. The zone has so far attracted more than 50 investors from many foreign countries, with total registered capital of nearly $3 million.

Changes needed to push housing stimulus package

The State should amend regulations for receiving loans as part of the VND30 trillion (US$1.42 billion) stimulus package, to promote the future disbursement of loans, according to the Ministry Construction.

Interest rates for loans provided in the VND30 trillion stimulus package remain high, so only people who have mid-level and stable incomes are eligible for the loans, the ministry said.

The ministry said, at the meeting of the Central Steering Committee on Housing Policy and the Real Estate Market on Friday in Ha Noi, that the interest rate for loans under the package declined from 6 per cent to 5 per cent per year since January, but it is still high, and only people having higher incomes have the ability to apply for the loans.

The ministry also said that by April 15, five commercial banks had pledged to provide loans worth VND3.36 trillion ($16 million), as total outstanding loans from the package reached VND1.7 trillion ($80.9 million), reported the Voice of Viet Nam (VOV).

Of these, the banks have signed contracts with commitments of granting loans worth VND1.5 trillion ($71 million) for 3,962 households.

They also have given loans valued at VND711 billion ($33.8 million) for 2,297 households buying social houses, and VND793 billion ($37.7 million) for 1,665 households purchasing commercial houses.

The banks have disbursed VND496.6 billion ($23.6 million) for 2,139 households in Ha Noi and VND146 billion ($6.9 million) for 433 households in HCM City.

Meanwhile, the banks had commitments on providing loans worth VND1.86 trillion ($88.5 million) for 21 property projects, and disbursed 17 projects with total outstanding loans of VND723.8 billion ($34.4 million).

Therefore, the ministry has delivered a proposal to the Government to amend some regulations in the VND30 trillion ($1.42 billion) stimulus package to promote disbursement of the package.

It also said the time for paying back loans for individuals and households should increase from 10 to 15 years.

Further, the State should not limit areas and prices that are eligible for loans, while offering loans to State staff members and those in the armed forces in urban areas of the provinces and cities managed by the central administration who have difficulties in obtaining housing. They could receive loans to build new houses or maintain their existing houses with a maximum of VND840 million ($40 million) per person.

Meanwhile, the State Bank of Viet Nam has also proposed adding a number of commercial banks to the list of banks providing loans under the VND30 trillion package.

Also, the State Bank said that total outstanding loans provided for investment and trading of real estate during the first two months of this year increased 1.8 per cent to VND266.72 billion, as compared to the end of last year.

New fuel blends ethanol with gasoline

The sales manager of Saigon Petro Company, Tran Minh Ha, said that E5 gasoline marketing needs to be boosted, the Sai Gon Giai Phong (Liberated Sai Gon) reported.

The price for a liter of E5 (petrol containing five percent ethanol) is the same as A92 gasoline, noted Ha. Vietnam National Oil and Gas Group (PVN) fears that customers will hesitate to purchase E5 because they do not understand its benefits.

Relevant agencies should educate consumers about E5 before it becomes available in Quang Ngai, Ha Noi, Hai Phong, Da Nang, Ba Ria-Vung Tau, HCM City and Can Tho beginning December 1, said Nguyen Xuan Thuy, director of the Department of Industry and Trade in Quang Ngai province.

The E5 blend will be used nationwide starting December 1, 2015. Quang Ngai province, the pioneer for distribution of the blend, will supply stations with the fuel starting June 1.

The country has seven ethanol production plants, producing 535 million liters per year, according to the Ministry of Industry and Trade. This is enough to allow for the production of blends of E5 and E10 gasoline in 2014.

Additional plants are under construction to allow for the production of larger quantities of ethanol.

Petrol Vietnam provided only 22,000 cubic meters of gasoline E5 in the market in the last few years. This number accounted for only 1.1 percent of an ethanol plant's capacity.

Three out of 10 petrol wholesale companies have sold the E5 blend at 170 of 12,000 stations throughout the country. Stations with the blend include PV Oil, Petec, and Saigon Petro.

Consumption of the E5 blend was not as popular as expected in 2007, when it was released into the market.

Footwear exports to Spain jump

Viet Nam continued to be the second largest exporter of footwear to Spain in 2013, shipping 27.7 million pairs and earning 268.5 million euros, or US$371 million.

The volume of Vietnamese footwear exports to Spain increased by 11 per cent, but the turnover fell by 1.1 per cent over 2012, according to the Spanish Footwear Producers Federation (FICE).

A pair of Vietnamese shoes exported to Spain is valued at 9.67 euros, or $13.36, on average.

For many years, except 2011, Viet Nam has been the second largest exporter of footwear to Spain, second only to China.

In 2013, the total turnover of Viet Nam's exports to Spain reached $2.1 billion, up 24 per cent compared with 2012.

Statistics show that the main export items of Viet Nam to Spain include seafood, coffee, textiles and footwear, accessories and phones.

The import value too is slightly over 10 per cent, reaching $300 million, and includes major items such as chemicals, machinery, plastics, pharmaceuticals, materials for garments, leather and footwear. The two countries' trade turnover exceeded the milestone of 2 billion euros for the first time, reaching 2.3 billion euros in 2012, higher than the previous year, with a high trade surplus from Viet Nam.

Electric cable export revenue surges

Revenue from electric cables and wire exports rose 11.4 per cent over the same period last year, according to the Ministry of Industry and Trade.

Of the total US$157.35 million, Japan, one of the world's leading automotive producers, imported nearly 28 per cent, an increase of more than 8 per cent over the same period last year.

Japan was followed by China and South Korea, with $28.7 million and $14.39 million in the first quarter, up 130.77 per cent and 145.91 per cent, respectively, compared to the same period last year.

However, shipment of electric cables and wires to Singapore, Thailand, the Philippines and Laos fell significantly during the period.

Exports of electric cables and wires totalled nearly $700 million last year, according to the General Statistics Office.

Non-performing loans ratio stays high in HCM City

There were VND45.85 trillion, or US$2.183 billion, worth of non-performing loans (NPLs) in HCM City at the end of March, accounting for 4.85 per cent of the city's total loans.

The online Sai Gon Economic Times reported that the number of potentially irrecoverable debts, or Group 5 debts, remained high, representing 73.02 per cent of the city's total NPLs, a slight decrease from 75.7 per cent at the end of 2013.

According to the central bank's HCM City branch, the city's lending in the first quarter this year rose very slowly, by just 0.57 per cent, from the end of last year to VND954 trillion, or $45.428 billion.

Deputy Director of the central bank's HCM City branch Nguyen Hong Minh attributed the slow lending increase in Q1 to a weak demand of the economy.

Credit institutions too hesitated to lend as NPLs remained significantly high, Minh added.

Minh said that the credit growth in Q1 was mainly thanks to a rise in foreign currency lending, especially in January. Domestic importers borrowed large sums of foreign currencies in Q1 to import goods to meet the rising demand during the Lunar New Year holiday.

By the end of February, the outstanding loans in Vietnamese dong amounted to VND790.682 trillion, or $37.651 billion, down 1.38 per cent from the end of 2013. The outstanding loans in foreign currencies maintained steady growth in the first two months and reached VND155.611 billion, or $7.41 million, up 2.96 per cent from the end of 2013.

In Q1, firms in the prioritised industries of agriculture and rural development, export, small- and medium-sized enterprises, supporting industries and high-tech applications borrowed VND133 trillion, or $6.33 billion, up nearly 5.4 per cent against the end of last year. The preferential interest rates for the firms were under 9 per cent yearly.

Southern industrial zones need revamp

Long-term solutions to ensure the sustainability of industrial zones in the southern region are long overdue, heard a conference of leaders of departments of industry and trade from 20 provinces and cities last week.

Nguyen Nguyen Phuong, of the HCM City Department of Industry and Trade, told the conferees that the city had developed a plan that could be adopted by other provinces to develop industrial zones by 2020.

"We will stop the development of any industrial zone that has incomplete infrastructure or contains residential areas within its borders," he said.

He conceded that the cost of wastewater treatment facilities in industrial zones required a large amount of capital, and suggested that the Government use funds from the state budget to invest in such equipment.

Capital could be recovered, he said, by collecting fees (called environment fees) from businesses operating in the zones.

He said the city had asked the Ministry of Industry and Trade to give more autonomy to management boards of industrial and export processing zones in HCM City.

They are currently managed by either the Ministry of Industry and Trade or the Ministry of Planning and Investment.

The city has also recommended that specialised industrial zones be established for investors who have advanced technologies.

In addition, it also suggested establishing satellite businesses that provide support products and services for the region.

Nguyen Minh Toai, director of Can Tho's Department of Industry and Trade, has asked the Can Tho administration to approve a project to move factories that cause pollution out of residential areas.

Can Tho has also requested that the Government help build infrastructure in industrial zones.

Meanwhile, Nguyen Van Huu, deputy director of Binh Duong Province's Department of Industry and Trade, said the province needed support from the Government to develop a programme to save and use power efficiently.

Solutions needed for the power-savings programme include investment, training, technologies and cooperation, he said.

Also speaking at the conference, Le Duong Quang, deputy minister of Industry and Trade, said, "In the long run, the region must strengthen linkages with the rest of the country to lure more investment to the area."

"Most of the provinces and cities in the region are not cooperating with each other well, which has caused conflicts of interest among localities," Quang told Viet Nam News.

Quang said the region continued to struggle as the economy slowly recovers, affecting industry and trade.

He urged local departments of Industry and Trade in southern localities to complete development plans for the power and petrol sectors as well as industrial zones and other trade sectors.

The increasingly critical problems of environmental protection and food safety and hygiene, especially in the Southern region, were among the other pressing issues discussed at the conference.

The deputy minister noted that many processing firms such as leather and footwear as well as industrial zones discharge waste and contribute to air and water pollution.

"The Ministry of Industry and Trade has also asked local departments to work closely with the power sector to resolve site clearance issues related to the development of power projects," he said.

With the current development of industry and trade, there will be a serious shortage of electricity for industrial production by 2018, he said.

"Export businesses should also be more aware of trade remedies, such as anti-subsidy or anti-dumping cases, which major export markets can impose," he said.

He also emphasised the important role of associations in helping local exporters deal with anti-dumping and anti-subsidy lawsuits.

Covering an area of 71,963 square kilometres and accounting for 21.75 per cent of the country's area, the Southern region has 33.8 million people, or 38 per cent of the country's population.

The region has two major cities – HCM City and Can Tho – and 18 provinces. It is an attractive destination for investment, accounting for more than 55 per cent of the country's total foreign direct investment.

The first of its kind, the conference was organised by the ministry and Binh Thuan Province's People's Committee. The second conference will be held next year in Can Tho.

As part of the conference, more than 200 Vietnamese companies participated in an industry and trade fair that ended today in Phan Thiet in the central province of Binh Thuan.

The Southeastern Region Industry and Trade Fair and Exhibition 2014 is organised by the Ministry of Industry and Trade and the provincial people's committee.

The five-day event aims to attract investment by showcasing the socio-economic achievements, potential and investment incentives of Binh Thuan Province and other provinces and cities in the region.

It also aims to promote exchange between enterprises to help them seek partners and investment opportunities, increase sales, improve the quality of products, and create new products and enhance their competitiveness.

The fair, featuring nearly 600 booths, focused on Vietnamese goods and services with 90 per cent of the products and services made in Viet Nam.

Transport firms can pay road fee in installments

Transport enterprises who have to pay the road-use fee of VND50 million (US$2,380) per month or more will be allowed to pay every month instead of once a year as at present, a new draft decree has said.

The decree, which was prepared by the Ministry of Finance, stipulates that transport enterprises pay the fee the last day of the month.

Registration centres will be in charge of collecting the fee.

The decree was made following a proposal by many transport enterprises who protested at the large once-a-year payment.

The changes are expected to help transport enterprises avoid financial hardship, especially those controlling many trucks.

The decree also states that trucks owned by co-operatives and transport companies that closed down within 30 days would not have to pay the fee.

Vehicles used only at stations, ports, and mining and forestry areas will be exempt.

The fee levels will be adjusted for some kinds of vehicles. For example, buses will pay VND180,000 ($8.50) a month instead of the current VND590,000 ($28).

Previously, many enterprises protested at the collection of the fees, which they described as "improper".

Hoang Ngoc Thanh, director of Hoang Ha Transport Company in northern Thai Binh Province, said his company had more than 50 truck containers, and he had to pay more than VND400 million ($19,040) per year.

"It is improper. Not all of our trucks operate 30 days per month as they need time off for regular maintenance and drivers ask for their leave," he said.

The road-use fee, which requires motorbikes, cars and trucks and other engine vehicles nation-wide to provide funds for road maintenance, became effective on January 1 last year.

Vinacomin reports low turnover

Viet Nam National Coal–Mineral Industries Holding Corporation's (Vinacomin) turnover was VND26 trillion (US$1.23 billion) in the first quarter of the year, while its profit was VND550 billion ($26.1 million).

Nguyen Van Bien, Vinaconmin's deputy general director, announced at a press meeting in Ha Noi last week that of the total revenue, turnover from coal exploitation was VND13.3 trillion ($633 million), from electricity production was VND3.2 trillion (152 million) , and from mineral production was VND1.52 trillion ($73 million) .

The slow recovery of the world economy has resulted in decreasing coal consumption and sale prices, Bien said, adding that the group, however, would strive to meet financial balance and State budget collection while ensuring employees' welfare.

Figures from Vinacomin showed that coal output in the three-month period was 9.7 million tonnes, a reduction of 8 per cent compared with the same period last year and an achievement of only 26 per cent of the year's target.

Coal consumption was estimated at 9.35 million tonnes including 2.5 million tonnes for export and 6.8 million tonnes for domestic purposes, accounting for three-fourths of the total because of low export prices. The company had targeted to export 8 million tonnes of coal this year out of a total of 35 million tonnes.

The coal inventory at the end of the quarter was 7.6 million tonnes.

Alumina output in the period was 113,000 tonnes, while several minerals had an increase in output year-on-year of 104–142 per cent. Electricity production and consumption reached 2,600 million kWh, representing a five per cent increase compared with the same period last year.

The group ensured jobs for 126,000 labourers with an average income of VND7.7 million each per month.

However, Vinacomin's investment in the first quarter was low at VND2.45 trillion ($116 million), showing a 17 per cent year-on-year decrease.

Bien said Vinacomin has taken drastic measures to implement the restructure plan approved by Prime Minister Nguyen Tan Dung to focus on core businesses.

The group has dissolved so far this year 9 one-member limited companies involved in coal production to merge them with its branches to stabilise their operations.

It also equitised 2 out of 8 approved units and will move the remaining 6 units to joint stock firms from the beginning of next year.

It has targeted to complete the equitisation of all 8 units this year.

Vinacomin has also reduced its capital ownership in non-core businesses to less than 36 per cent and has divested from non-core businesses such as banking, financial investment, and infrastructure.

The total investment in non-core businesses was VND500 billion ($23 million) in five units including SHB Bank, SHS Securities Company, Sai Gon-Ha Noi Fund Management Company, and Hai Ha Industrial Zone in northeastern Quang Ninh Province.

He claimed the group has been waiting for favourable opportunities to divest all capital from SHB and SHS and ensure the availability of capital after the withdrawal.

Vinacomin has targeted to meet 50–52 per cent of the whole year's plans in the first half of the year. Coal consumption will be 9–10 million tonnes: 1.5–2 million tonnes for exports and 7.5–8 million tonnes for domestic consumption.

Violations rampant in state-funded projects

Numerous state-funded project developers have been found to have violated regulations on state capital management.

The 54km Cau Gie-Ninh Binh highway was one of many such projects listed by the State Audit of Vietnam (SAV) in its announcement at last week’s National Assembly Standing Committee meeting.

The project increased its budget 2.4 times against the $177.8 million set out in the initial plan. It is invested in by the Vietnam Expressway Corporation, with $47.6 million and the remainder through a government bond issuance and other state sources.

While this project is under-construction, it has seen very slow progress over the last four years.

SAV head Nguyen Huu Van said state coffers were feeling the pinch because of serious violations by numerous state projects.

“Hundreds of projects have significantly increased their budgets compared to initial estimates, and in most cases the reasons are not made public,” he said.

Other cases include the project investment to upgrade national roads (phase 1) was tripled from $109.2 million to $331.47 million, as well as the Ho Chi Minh highway’s Pac Bo-Cao Bang and Chon Thanh-Duc Hoa sections with an increase of $14.43 million. For national road 3’s Bo Dau-Ta Lung border gate section, capital more than doubled from $25.9 million to $61.9 million. The project to connect Vung Ang seaport to the Laos border saw an increase of $3 million.

According to the SAV, in 2012, the Vietnamese government was tightening public investment. However, for thousands of recently finished projects it is unclear where they sourced their capital, they are mostly in the provinces of Quang Ngai, Phu Tho, Kien Giang, Thanh Hoa, Thai Binh, Gia Lai, and Haiphong city.

Van also stressed that many localities announced new projects at a time when capital is very limited. Quang Nam has 501 projects, An Giang 325, Ninh Thuan 268, Phu Tho 298, Khanh Hoa 457, Hanoi 587 and Ho Chi Minh City 1,069.

“Notably, more than 4,000 projects have been delayed and are behind schedule,” Van said.

The National Assembly Economic Committee’s Chairman Nguyen Van Giau suggested investors in projects that have revised up their budgets must make public the reason behind this action.

“Those found to have violated regulations must be severely punished to ensure budgetary principles,” Giau said.

The SAV will conduct 161 audits this year in 35 provinces and cities, 15 ministries, 31 state-funded investment projects and 44 state-owned enterprises, financial organisations and banks. In 2013, some 149 audits were conducted.

Enterprises on the audit list include the Ministry of Transport’s Cuu Long Transportation Infrastructure Project Management and Development Investment Corporation, PetroVietnam, Electricity of Vietnam and Vinacomin.

Official urges SOEs to strengthen relationships

Chairman of the HCM City People's Committee Le Hoang Quan has urged enterprises, especially State-owned ones, to strengthen links for mutual development.

At a meeting with representatives from departments, agencies and State-owned businesses in the locality on Thursday, the mayor suggested that enterprises should focus on human resources development, particularly highly qualified staff.

As banks are reducing the lending rates, business players should have specific plans to access loans for investment in equipment and technology, he noted.

The local firms were also asked to work together for both extensive and intensive restructuring and stay proactive to cope with more severe competition.

According to the municipal Finance Department, HCM City is home to 108 State-owned companies, 15 of which are preparing procedures for merger, acquisition dissolution and bankruptcy.

In the first quarter of this year, these enterprises raked in VND15.6 trillion, or US$733 million, in total revenue, down 18.73 per cent year over year.

Foreign firms in Dong Nai require larger workforce

Foreign-invested enterprises in the southern province of Dong Nai are in need of about 25,000 workers in the second quarter of this year, according to the provincial Department of Labour, Invalids and Social Affairs.

Of the total, the firms are mostly keen on technical workers, while requiring fewer than 200 university graduates, the department said.

It added that in the first quarter, the enterprises had high demand for unskilled labourers. Among the nearly 450,000 working in almost 700 local enterprises, there are fewer than 30,000 university graduates, equivalent to 6.6 percent.

In Q1, more than 21,000 locals were employed, including 12,000 by foreign invested enterprises, the department added.

Le Van Hien, rector of LILAMA2 Vocational Collage under the Ministry of Construction, said more vocational skills are being added to the school’s training programmes in an effort to meet the demand of enterprises in the locality.

Kien Giang farmers gloomy despite bumper rice crop

Farmers in the Mekong Delta province of Kien Giang have enjoyed their most productive rice crop ever, with 2.2 million tonnes harvested so far this year across 305,856 hectares.

However, the mood is not overly optimistic, as the low current price of rice means lower profits.

The local rice price in recent days has tended to decrease, varying from 4,400 VND-5,700 VND depending on the quality.

Many farmers have chosen not to sell their rice immediately in the hope for the value rising soon, despite loan deadlines looming.

Since early this year, Kien Giang has experienced a 50 percent decrease in its rice exports against the same period last year, contributing to the plummeting value.

Many local enterprises could not sign export contracts, while many deals between farmers and distributors have been broken.

In an effort to seek a solution, the provincial Department of Industry and Trade has directed local enterprises to speed up the purchase of rice for farmers, while working harder to find new markets and partners for rice businesses.

Domestic retailers go in search of rural prospects

Rural areas are a promising market for domestic retailers as they face intense competition from foreign businesses, especially given the full opening of the retail market from next year.

Mai Thi Tuyet Hoa, director of Niesel Vietnam's Research Department, said at a conference on the country's retail sector held in Hanoi last week.

Hoa said that several domestic retail companies wanted to expand their market share in rural areas. The expansion to rural market was considered as one of the best solutions, although urban areas were the main focus of their development strategy.

"I think the impact of retailers in rural markets will be larger than in urban markets. Several big retailers, for example, Unilever P&G, as well as small firms have asked us to provide information about the characteristics of rural areas and the strategies that should be employed in these markets," Hoa said.

According to a survey conducted by Nieisel, customers in rural areas were strongly affected by advertisements and introductions from retailers. In addition, 90 percent of the retailers in the area tended to introduce products and advice buyers.

The survey also revealed that with 477,000 big and small shops in the country's rural areas, if on an average 64 customers visited a shop in a day, there will be about 2.75 million buyers who will buy products after retailers' introduced them.

"The data surprised many retailers and led them to rethink their development strategies in the rural market," she added.

Dinh Thi My Loan, chairwoman of the Vietnam Retailers Association (VRA), said these areas were promising markets because of the young population, integration trends and a modern retail system that was in its infancy.

"However, domestic retailers should not only expand their markets, but also ensure quality and gain customers' trust to compete with foreign firms," Loan said.

She added that customers' trust had gone down because of problems relating to products' quality.

The problems were unavoidable because of the sheer number of items in the market. However, it was important for the retailers to learn from the problems and make efforts to gain the trust of customers, she added.

Under the World Trade Organisation's commitment, Vietnam will fully open its retail market to foreign retailers by the beginning of next year.

Experts said foreign retailers with their financial might, trademarks and market experience will prevail in the market.

Several big retailers from Japan, the US, the Republic of Korea and Singapore are slated to start operations in the country.

In addition, the country already has two big foreign retailers, Big C and Metro Cash&Carry. Big C had expanded its chain. It now has 24 supermarkets nationwide.

It was forecast that the modern retail channel will account for 45 percent of the market in Vietnam by 2020.

The country's growth rate in the retail market was 23 percent, indicating its large potential.

PM approves project on improving power transmission

The Prime Minister has approved the content of a project aimed at improving the efficiency of the national power transmission network at a total investment of 897 million USD.

Under Decision 521/QD-TTg dated April 14, the Ministry of Industry and Trade will be in charge of the Transmission Efficiency Project (TEP), which is to be carried out by the National Power Transmission Corporation (NPT) under the Electricity of Vietnam group.

Loans worth 500 million USD will be sought from the World Bank for the project, while NPT will arrange the sourcing for the remaining 397 million USD.

The TEP will increase the transmission capacity and reliance of the 500kV transmission system, while enhancing the organizational, financial and operational capacity of the NPT towards becoming an independent company as part of the country’s effort to reform its electricity market.

The project will be carried out from 2014-2018 in all 63 cities and provinces nationwide.

Exports of electrical cables and wires grows 11 percent

Exports of electrical cables and wires reached US $157.35million in the first quarter this year, an increase of 11.4 percent over the same period last year, according to the Ministry of Industry and Trade.

Japan is the largest importer with total export turnover of US$43.78 million in the first quarter, an increase of 8.62 percent over the same period last year. This accounts for 27.8 percent of total export value.

China ranks the second largest importer growing 31 percent. South Korea ranks the third largest importer growing 46 percent.

Export turnover to Singapore decreased 35 percent since the same period last year. Imports for Thailand and the Philippines decreased 17 percent while imports for Laos decreased 58 percent.

Casumina opens Casumina Radial Factory

The Casumina Radial at Tan Uyen South Industrial Zone commenced operation on April 19.

The steel-truck tire manufacturing plant is located in Tan Uyen District, Binh Duong Province and is owned by Southern Industry Rubber Corp.

The manufacturing plant has capacity to produce one million tires per year, said Pham Phu Hong, general director of Casumina.

It uses modern production lines to product multiple types of tires. The plant has the technology to convert nylon into steel.

The plant includes technology from US, Italy, and Japan. It was built with a total investment of VND 3.4 trillion, covering an area of 120,000 square meters. The plant has over 1,200 employees.

The company pays VND 500 billion in taxes, said Hong. It is expected to gain VND 5 trillion in revenue from Casumina Radial to meet market demand.

Deputy Prime Minister Hoang Trung Hai attended the opening ceremony.

The plant is a good investment for the industry and we hope it contributes to the economy while also heightening competition, said Hai.

MASkargo flies A330-200 freighter to Hanoi

MASkargo has launched its first A330-200 freighter flight to Hanoi two years after the air cargo arm of Malaysian Airlines launched service to HCMC.

As scheduled, the A330-200 freighter flies to Noi Bai International Airport every Wednesday and Friday as part of its Kuala Lumpur-Singapore-Labuan-Hanoi-Kuala Lumpur route.

Mohd Yunus Idris, chief executive officer of MASkargo, said in a statement that Hanoi was known as a large base for exports of electronic parts and equipment as well as garments and footwear. MASkargo will support fast and efficient movement of goods to global destinations across Asia, Europe, India, Japan and the Middle East.

Idris said MASkargo saw huge potential to expand its business in Vietnam given the country’s GDP growth of 5.42% last year and rises in exports.

“We want to grow in the Vietnamese market by facilitating export and import links between Vietnam and its trading partners,” Idris said.

The presence of international manufacturing companies and the country's potential in air transportation has stimulated demand for fast and reliable air cargo movement, which is what MASkargo can offer to its customers.

Aviation Solutions Services Co. Ltd., MASkargo’s general sales agent (GSA), expects that an initial response to the freighter would be encouraging and in tandem with the country’s economic growth. The company said increased daily services could be considered in the near future.

MASkargo said the Kuala Lumpur-HCMC-Bangkok-Kuala Lumpur service in 2012 and has since seen strong demand on this route.

Currently, Malaysia Airlines operates daily commercial flights between Kuala Lumpur and Vietnam’s two biggest cities – HCMC and Hanoi.

HCM City taxman collects VND180 billion from capital transfer deals

The HCMC Department of Tax has issued decisions collecting more than VND180 billion (some US$8.53 million) worth of personal income tax from capital transfer activities linked to Hoan My Hospital and Pho 24.

A source from the agency declined to name the taxpayers but told the Daily that an individual who engaged in the Hoan My hospital transfer deal had been asked to pay over VND166 billion. The person was found to avoid paying the tax for the income made from the first transfer in 2010.

The real income from the deal was over VND500 billion higher than the amount that person had declared. As a consequence, this person is forced to pay VND166 billion, including the extra tax collection and the fine for slow payment.

In 2010, the individual at Hoan My Hospital paid over VND10 billion in personal income tax, the source said. Last year, the person made another capital transfer but filed enough tax as regulated, the source added.

Meanwhile, capital transfers among enterprises are not subject to any taxes as Vietnam and Singapore (the person transferred capital to a Singaporean firm) have signed an agreement for the Avoidance of Double Taxation.

For the Pho 24 deal, the department has also decided collection of personal income tax from six persons with their combined payment of more than VND16 billion.

Earlier, local authorities have expressed concerns over complicated capital transfer activities among many enterprises. Of which, Pho 24 and Hoan My Hospital are among the many businesses that have reportedly undertaken capital transfer and franchise deals but have not fulfilled their tax obligations.

Switzerland funds business improvement

The Swiss State Secretariat for Economic Affairs (SECO) will provide US$4.75 million for Vietnam to improve the business environment and expand the business registration system over four years.

The Ministry of Planning and Investment said that the fund would be spent continuing a project for “Expansion of National Business Registration System” to new commercial entities. This project is expected to cost some US$5.45 million and be executed until 2018.

The system was built and put into operation by the General Department of Taxation and provincial Business Registration Offices with financial support of foreign organizations from 2008 to 2013.

The project facilitates business registrations via the system for State-owned enterprises, those companies operating under the Enterprise Law and licensed by the management boards of economic or export processing zones, scientific technology firms, credit institutions and other business organizations.

Currently, the system is used by enterprises in 63 cities and provinces throughout the country for business, tax, statistics and customs registrations.

The national business registration portal at www.businessregistration.gov.vn now contains data of over 864,596 enterprises and entities operating in compliance with the Enterprise Law and 164,000 annual financial statements of shareholding companies.

CMC Infosec, Bkav offer free Heartbleed checks

CMC Infosec and Internet security firm Bkav are offering free checks that enable businesses, organizations and individuals to keep their information secure from the Heartbleed vulnerability.

Right after news on the Heartbleed bug surfaced, CMC Infosec said it had carried out checks and preliminary analysis to identify the number of websites of State agencies, banks and online payment systems vulnerable to the bug. A majority of these systems have been reviewed and have their security problems fixed.

However, CMC Infosec warned that it was difficult to know if such systems had lost private keys once they used to be vulnerable to the security threat.

To solve the security issues effectively, CMC Infosec provided free check service for companies and institutions to figure out whether their websites are vulnerable to Heartbleed attacks besides assisting them in remedying such problems.

Earlier, Bkav started a free supporting tool that allows users to check whether their websites are safe from the Heartbleed bug before each transaction. The possible information loss is considered as a serious threat for global online transactions as millions of participants worldwide may lose their personal information and money.

Bkav’s tool is available at Bkav.com.vn/sslScan. Before making an online transaction, users should access the website and type the link of the websites on which they are about to browse to make sure their transactions are safe.

In related news, Vietnam Computer Emergency Response Team (VNCERT) has urged local banking and electronic payment systems to immediately get updates about OpenSSL library and keep customers informed of the information vulnerability. Due to a security flaw in the open-source OpenSSL, payment portals and e-banking services among others may have their encryption keys stolen, VNCERT said.

The “TLS heartbeat read overrun” security flaw in OpenSSL library has been confirmed, allowing hackers to steal sensitive data like private keys. VNCERT therefore has warned State agencies to be on alert for the risk.

Ford Vietnam to roll out EcoSport after Escape assembly stops

Ford Vietnam is expected to assemble EcoSport, a smaller SUV (sport utility vehicle) model than the Escape this year after a stoppage of Escape production at the company’s factory in Hai Duong Province.

A source from Ford Vietnam told the Daily on April 16 that the company had stopped assembling the Ford Escape and did not have plans to import this medium-sized SUV from factories of Ford in other markets for sale in Vietnam.

The stoppage is part of the U.S. automobile maker’s plan. It is not because of low consumption of the Ford Escape but the end of the lifecycle of this model.

Ford Vietnam said that the Ford Escape had been sold out at its dealers. Around 10,000 Ford Escapes assembled by the firm are now on the roads of Vietnam.

The source also said that in the coming time, the factory of Ford Vietnam in the northern province of Hai Duong would assemble the EcoSport. This brand new model is being produced at Ford’s factory in Rayong, Thailand, for the Thai market and other countries in Southeast Asia.

The EcoSport, which is also assembled in China, India and South America, will be sold in more than 100 markets in the world. This is one of Ford’s strategic car models.

The car is expected to be available in Vietnam in the middle of this year.

Based on the Ford Fiesta platform, the EcoSport is equipped with a 1.5 liter Ti-VCT (Twin Independent Variable Camshaft Timing) petrol engine. The car features two gearbox options, including Powershift, a dual clutch six speed automatic gearbox, and five speed gearbox. Another highlight of the EcoSport is the equipment of the SYNC, a voice command system.

Even with the absence of the Ford Escape, Ford Vietnam still sold 817 cars in March, up 64% year-on-year, said Metelo Arias, general director of Ford Vietnam.

The first quarter of this year saw market share of Ford Vietnam increase to 8.1% compared to 7.1% a year ago.

North-south power lines suspended

Vietnam Electricity Group (EVN) has announced to switch off two 500 kV north-south power transmission lines to facilitate the construction of the 500 kV Pleiku-My Phuoc-Cau Bong line within this month.

According to a statement released on April 16, the 500 kV Tan Dinh-Phu Lam line is off from April 16 to 20 and the 500kV Dak Nong-Phu Lam line from April 24 to 27.

EVN calls for consumers to save electricity during the period to reduce pressure on the country’s current power grid.

The erection of the 500 kV Pleiku-My Phuoc-Cau Bong line is expected to be complete within this month.

Last November, the Dak Nong-Phu Lam and Phu Lam-Tan Dinh lines were also suspended at the same time for the construction of a power line connecting Pleiku, My Phuoc and Cau Bong.

EVN mobilized power from oil-fueled power plants in the country’s south like Thu Duc, O Mon and Can Tho with a total backup capacity of some 8,000 MW to make up for the temporary shortfall in the region.

The two lines have the highest combined capacity of around 2,000 MW a day. Power supply for southern provinces is falling short at the moment.

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