Vietnam's biggest cities rank bottom on competitiveness

Hanoi and Ho Chi Minh City are amongst the 20 cities with the lowest competitive index in the world, according to a new report Global City Competitiveness by The Economist Intelligence Unit (EIU).   

In the world chart consists of 120 cities, Hanoi ranked 104th with 38.8 points in 100 points rating scale while Ho Chi Minh city ranked 109th with 36.5 points.

Hanoi only makes 36th place and HCM City 39th place out of 44 cities in the Asia-Pacific region.

Despite the low competitive index, Hanoi had a good review in the ‘economic strength’ category. With 43.8 points, the capital is placed 20th in world top 30 along with Hong Kong. According to the report, Hanoi's GDP will have an average growth of 10.2% per year in 2010-2016 period.

The EIU said the report was developed to measures city indexes across eight distinct categories of competitiveness, including economic strength, human capital, institutional effectiveness, financial maturity, global appeal, physical capital, social and cultural character and environmental and natural hazards.

Stocks rise on soaring volumes and values

Stocks closed this morning's session up on both stock exchanges with increased trading volumes and values.

On the HCM City Stock Exchange, the value of trades soared nearly 50 per cent over yesterday morning, reaching more than VND1.08 trillion (US$51.4 million) while the market volume increased 42 per cent to 66.3 million shares.

The benchmark VN-Index advanced 0.62 per cent to finish this morning at 436.53 points, led by blue chips.

Nearly 50 per cent of the 30 leading shares by market value and liquidity posted gains, with insurer Bao Viet Holdings (BVH) and PetroVietnam Finance (PVF) hitting the ceiling prices, which also helped lift the VN30 Index by 0.57 per cent to 494.05.

Finance stocks led this morning's trades, with Military Bank (MBB), Sacombank (STB) and its securities arm Sacombank Securities Co (SBS) each seeing over 3.8 million shares changing hands. MBB and SBS edged up 2.1 per cent while STB closed up 1.8 per cent.

Gainers outnumbered losers by 123-84 overall.

On the Ha Noi Stock Exchange, the HNX-Index regained 1.75 per cent after two consecutive falling sessions, finishing this morning at 70.49 points. The value of trades was more than double that of yesterday morning, standing at almost VND1.04 trillion ($49.4 million) with nearly 75.7 million shares traded.

Losers overwhelmed gainers by 134-97.

Investors continued to speculate on shares of Habubank (HBB), pushing its volume of trades to 14.6 million shares this morning. HBB's share price was unchanged at VND6,200 a share.

Stocks cool as investors flee risk

Stocks sustained gains on the HCM City Stock Exchange yesterday, but sank on the Ha Noi bourse.

In HCM City, the VN-Index closed up by over a per cent to 433.86 points, even as decliners outnumbered advancers by 156-96.

Eleven of the 30 leading shares posted gains, with insurer Bao Viet Holdings (BVH), Sacombank (STB) and PetroVietnam Finance (PVF) each hitting their ceiling prices, helping lift the VN30 Index to a close of 491.23 points, a gain of about 1 per cent on the day.

Investors remained wary of a possible "bulltrap", keeping market volume unchanged at just 64 million shares, worth about VND986.5 billion (US$34.7 million).

Ninh Van Bay Travel Real Estate (NVT) concluded the session as the most-active share on the southern bourse on a volume of 4.66 million shares, closely followed by Sacombank (STB) with a volume of 4.5 million shares. NVT slid by 2.86 per cent to close at VND3,500 per share, while STB hit its ceiling price of VND22,300.

On the Ha Noi Stock Exchange, the HNX-Index lost 1.79 per cent to end yesterday's session at 69.28 points. The value of trades dropped 10 per cent to VND598.6 billion ($28.5 million), while volume plunged by 16 per cent to 67.4 million shares. Losers edged out gainers by a margin of 135-122.

Habubank (HBB) continued to be the most-active share nationwide with nearly 19 million shares traded. The State Bank of Viet Nam late Tuesday rejected a rumour that it had approved a takeover of HBB by Sai Gon-Ha Noi Bank (SHB) .

Except for some blue chips attracting foreign investor attention in HCM City, most stocks saw negative movements yesterday, including speculative stocks in Ha Noi such as Kim Long Securities (KLS) and VNDirect Securities (VND), Bao Viet Securities Co analyst Pham Tien Dung wrote in a report.

Foreign investors returned to being net buyers on the HCM City market yesterday, picking up shares worth a net of over VND172.6 billion ($8.2 million). By contrast, they were net sellers in Ha Noi market by a narrow margin of VND7.3 billion ($347,600).

Information which could affect the market in coming sessions would include first-quarter earnings by listed enterprises and net asset values of investment funds at the end of the first quarter, Dung said.

"In the short term, the market lacks supporting news," he said. "Thus, demand may weaken and only increase if share prices decline significantly."

Habubank dispels acquisition rumor

The rumor that Hanoi Building Commercial Joint Stock Bank, or Habubank, has been acquired by the Saigon - Hanoi Commercial Joint Stock Bank, or SHB, is groundless and inaccurate, said the former in a press release issued yesterday.

“The hearsay has adversely affected Habubank’s reputation and operation, as well as that of the whole banking system,” Habubank said in a statement.

“It has also interfered with information on the stock market, which can affect investors’ interests.”

For its part, the State Bank of Vietnam also rejected the information that it has green-lighted SHB to acquire Habubank.

“It is a false rumor, and SBV has yet to receive any proposals from either parties about the merger or acquisition,” the central bank said on Tuesday.

The merger and acquisition policy, as approved by the government in a bid to increase credit institutions’ health, safety, and financial ability, will be put under the close watch of the central bank and relevant agencies, SBV confirmed.

Meanwhile, SHB has neither rejected nor confirmed its alleged acquisition on Habubank.

“SHB is seeking partners for mergers to increase potential and expand operation in a bid to become the national and regional leading bank,” the bank said in a press release.

The plan is in accordance with the government policy, which encourages healthy banks to join hands in the restructuring process, the announcement read.

SHB also affirmed that it always remains obedient to the law on mergers and acquisitions, as well as the regulation on transparency and publicizing information.

“Therefore, should there be any information regarding our operation, SHB will provide the official announcements as required by law.”

More Japanese investors eye VN’s real estate

After a period of exploration, Japanese investors are starting to enter the Vietnamese property market, especially office buildings, residential areas and industrial properties.

It used to be Singaporean and South Korean investors rather than the Japanese who were interested in the local property market, especially apartment buildings in Hanoi and HCMC.

However, Japanese investors have started to step in after entering other Vietnamese markets such as finance, communication and consumption.

One good example is the US$1.2 billion Tokyu Binh Duong Garden City project which got off the ground last week.

Japan’s Tokyu Corporation has made their way into the Vietnamese property market through a strategic partnership with Becamex IDC Corp.

The Becamex-Tokyu joint venture invests VND25 trillion, or $1.2 billion, to develop the project which covers 71 hectares in Binh Duong New City, with space for entertainment, commerce and offices as well as some 7,500 housing units.

Tokyu Corporation is one of the leading Japanese firms operating in multiple fields including electric railway, urban development, transport, retail, hotel and education.

Last December, Tama Global Investment Pte., under Japan’s Tama Home Group, entered the domestic market by buying a 20 percent stake in Cotec Real Estate Development and Investment Joint Stock Co. (Cotecland), a subsidiary of Cotec Group, to become a strategic partner in property investment and business.

Tama Home is active in housing development and real estate business with 7 members under its umbrella. Tama Global Investment specializes in 2 major fields, property and finance.

Under the partnership, Tama Home will transfer advanced technology in property construction and construction management to the local partner in order to shorten building periods, reduce costs, improve product quality and increase profits.

Meanwhile, in the office building segment, a Japanese property investment fund has acquired the Centre Point building on Nguyen Van Troi Street, Phu Nhuan District in HCMC.

The fund is currently looking for another partner to transfer the building after a year of investment.

The industrial property segment is similarly bustling, with Long Duc Industrial Park in Dong Nai to be developed by Vietnam’s Donafood in cooperation with 3 Japanese partners,

Sojitz Corporation, Daiwa House Industry Co. Ltd. and Kobelco Eco-Solution Co. Ltd.

With the combined stake of 88 percent in the joint venture, the Japanese companies and the local partner will invest US$100 million in the 281-hectare industrial estate.

In the field of property services, KMIX Corporation, a Japanese private company, has bought a 45 percent stake in Huy Bao Company to penetrate the local high-rise building management and maintenance market.

The chairman of this corporation said Vietnam was an attractive destination for Japanese investors who have been facing a saturated market at home.

Su Ngoc Khuong, director of the investment department of Savills Vietnam, said 2011 was a year of fluctuations and difficulties for the real estate market.

However, from the viewpoint of Japanese investors, it is a potential and attractive market considering the young and dynamic Vietnamese population.

The yen appreciation and the Japanese government’s support of overseas investments have also encouraged Japanese investors to come to Vietnam.

Khuong said Japanese investors had high expectations about the recovery of the local property market particularly because the Vietnamese government had pledged to take measures to prop up the market.

Japanese investors make decisions based on the parameters of crowded markets, stable economic growth and rising income per capita and often conduct thorough research before investing, Khuong said. They only invest in areas with long-term potential.

Other experts said Vietnam’s realty market was attractive to Japanese investors because Vietnam was an emerging market with a golden population structure, low labor costs and strategic position.

Regardless of the global financial crisis, Vietnam still ranks 4th among the most attractive emerging markets to foreign investors, according to the Association of Foreign Investors in Real Estate (AFIRE).

Khuong said another reason was the strategic partnership between the two nations. When Japanese investors arrive in Vietnam, they are provided sufficient information and protected by the two governments.

Despite certain shortcomings, Vietnam’s property market will see breakthroughs in the coming time with the arrival of Japanese investors, Khuong said.

He said many partnerships were being negotiated. Office buildings, commercial centers, industrial parks and new urban areas will attract the most attention of Japanese investors.

Coke, Pepsi claim no cancer-causing substances in Vietnam products

Regarding the global concern that their products contain a cancer-causing substance, Coca-Cola Vietnam, and PepsiCo Vietnam have claimed that there are no such substances in their beverages that are manufactured and distributed in Vietnam.

In January, 4-methylimidazole, or 4-MI, a caramel coloring in the colas, was added to the list of chemicals covered by California's Safe Drinking Water and Toxic Enforcement Act of 1986, also known as Proposition 65, according to a recent report by Reuters.

High levels of the chemical have been linked to cancer in animals, Reuters said.

“No person in the course of doing business shall knowingly and intentionally expose any individual to a chemical known to the state to cause cancer or reproductive toxicity without first giving a clear and reasonable warning," it quoted the California statute as saying.

Coca-Cola confirmed that it has strictly followed food safety regulations in all countries that it has a presence in, said Nguyen Khoa My, director of public relations of Coca-Cola Southeast Asia.

In Vietnam, authorities have approved the caramel usage found in Coca-Cola products, said My.

“The caramel color in all of our products has been, is, and always will be safe,” Coca-Cola stated in its global press release, which deemed the cancer-causing caramel a misconception.

The leading global beverage producer also said it is not changing the world-famous Secret Formula for the Coke beverages, which has remained unaltered over the years even as the company has constantly updated its manufacturing processes.

Meanwhile, PepsiCo Vietnam said that all of the ingredients for its beverages are imported, and meet all international and domestic safety and hygiene standards.

There has yet to be any official research confirming the substances used in PepsiCo’s drinks manufacturing are cancer-causing, the company spokesperson claimed.

“We completely trust in the safety of the ingredients that make up Pepsi beverages, and thus do not put any warning on the products’ labels,” he explained.

Meanwhile, Coca-Cola Co and PepsiCo Inc are making changes to the production of the coloring caramel in their products to avoid the need to label the packages with a cancer warning, according to Reuters.

Both said on Friday that they had asked their manufacturers of the caramel coloring to alter their manufacturing process to meet the requirements of the California ballot initiative aiming to limit people's exposure to toxic chemicals.

The companies will first start using the altered 4-MI caramel coloring in California, and then expand the use of the substance over time, they said.

"Consumers will notice no difference in our products and have no reason at all for any health concerns," Reuters quoted PepsiCo spokeswoman Gina Anderson as saying in a statement.

“The modification to the manufacturing process will have no effect on the formula, color or taste of Coca-Cola,” company spokesman Ben Sheidler told Reuters.

Businesses blame banks, tax agencies for problems

While many local businesses are beleaguered by a number of difficulties, from exorbitant lending interest rates to unreasonable tariffs, responsibility for these issues is still being passed to and fro between credit institutions and tax authorities.

Many businesses are also on the brink of losing their home market share to foreign counterparts, due to their inability to access bank loans, and the rising cost of materials and labor, according to opinions raised at a meeting between Ho Chi Minh City’s government and enterprises operating in the city on Tuesday.

Speaking at the meeting, organized by the municipal Businesses Association, Nguyen Trong Hanh, deputy head of the HCMC Tax Agency, said the number of businesses shutting down operations in the first two months of this year has amounted to 2,500.

Businesses with positive value-added or corporate income tax rates account for a very small proportion of the total figure, added Hanh.

“[Businesses] cannot yield operational effectiveness due to the exorbitant lending interest rates,” he warned.

Hanh criticized banks for only focusing on lending on the interbank market, rather than providing credit support to businesses.

“As a result, those really in need of bank loans are those who cannot access them.”

The credit institutions’ recent announcements on cutting rates and assisting businesses were “only intended to feed the media,” Hanh charged.

“Tax agencies are willing to provide data if you want to see what banks actually do with their capital,” he claimed.

A chief of the HCMC branch of the State Bank of Vietnam said that lending interest rates are still too high.

“Outstanding loans on the interbank market soared in the last months of 2011, since banks had to improve liquidity,” he admitted.

While speaking at the meeting, executives of Dai Phat Corporation demanded that municipal authorities assist businesses to access bank loans at interest rates of 15 – 16 percent a year as quickly as possible.

The company representative said most businesses now have to borrow at more than 20 percent a year.

Dai Phat Corp itself has just borrowed VND30 billion (US$1.44 million) for a new project, with annual interest amounting to VND6 billion, he said.

“This has prevented businesses from borrowing loans to expand operation or implement new projects,” he stated.

Meanwhile, Dang Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of HCMC, warned that domestic businesses are likely to lose competiveness to foreign firms in their home market.

Foreign businesses, besides having their own advantages, also enjoy a lending incentive with lower rates than domestic ones, he said.

Hung added that the rising transportation, material, and labor costs have also burdened local businesses, sending the cost prices of their products soaring, and thus reducing their competitiveness in both the domestic and export markets.

Meanwhile, other manufacturers blasted the many unreasonable tariffs they have to clear amid the hard time of production.

“I have no idea on which ground the lawmakers have slapped a tax rate of VND40,000 on every kilogram of plastic,” complained Vu Cong Hoa from the HCMC Mechanics Association.

Businesses called on the government to provide tax exemptions on them for one year, or another particular period.

Other policies on reducing taxes, fees, and lending rates should also be quickly issued to enable businesses to earn profits and pay taxes, they said.

Macao businesses seek cooperation opportunities

A delegation representing 40 businesses from Macao (China) began a working visit to HCM City on March 13 to seek partners and strengthen economic and trade ties between the two countries.

The businesses are mainly operating in the food and beverage, retail, environment, financial investment and real estate management fields.

The Vietnamese Deputy Consulate General and Trade Counselor to Hong Kong and Macao, Pham Van Cong, said that economic ties between Vietnam and Macao remains modest with two-way trade reaching US$34 million in 2011.

Vietnam exports seafood, coffee, cashew nuts, vegetables and consumer goods to Macao, and imports primarily equipment and plastics.

An exchange on how to boost economic cooperation between Vietnam and Macao was also organized, aiming to introduce Macao’s potential to Vietnam, encourage businesses to invest in tourism, and provide updated information on markets and business registration procedures.

Vietnam attends AAHAR Int’l Food Fair in India

Hundreds of businesses from 19 nations across the world have gathered at the 27th International Exhibition for Food, Food Processing, Hotel and Restaurant Equipment and Supplies (AAHAR 2012) being held in New Delhi, India from March 12-16.

This is one of Asia’s major events to provide business opportunities for Indian and foreign partners.

Vu Tien Dung, Marketing Director of Viet Hung Food Industry Co, Ltd  - the first Vietnamese company attending the event, said that the company has spent six months conducting survey on the Indian market.

He said India, with a population of 1.2 billion, is likely to become a potential market for his company to seek partners and launch new products which suits Indian customer tastes.

The event was organised by the India Trade Promotion Organisation (ITPO) under the Ministry of Trade and Industry.

Danang attracts more foreign investment

In the first two months of this year, Danang has licensed five more foreign-invested projects with total registered capital of more than US$10 million.

Two of the projects are from the US and the others are from Belgium, the Republic of Korea and Japan.

According to the Danang Investment Promotion Centre, the city has so far attracted 213 projects capitalized at nearly US$3.2 billion, most of which concentrate on tourism, services, real estate and industry.

Service and tourism projects have particularly tapped into Danang’s potential, which is in line with the city’s plan for restructuring its economy focused on the service, agricultural and industrial sectors.

Focusing on the customer  

Vietnamese retailers need to change their business methods and improve the quality of their customer services to up competitiveness in the domestic market, according to Minister of Industry and Trade Vu Huy Hoang.

During a meeting with domestic retailers in the capital yesterday, Hoang said customers would support local distribution-retail channels that could provide professional services and products at reasonable prices.

In order to better enhance their presence in the local market, experts agreed that retailers should enhance their business methods to meet the demands of a modernising and fast-paced environment.

However, retailers complained they faced many difficulties in developing while struggling to access retail space and capital resources due to skyrocketing interest rates.

Harsh competition from foreign rivals was also problematic, they said.

Phu Thai JSC Board Chairman Pham Dinh Doan said local retail companies had encountered barriers in accessing land and retail space because some localities seemed to favour foreign enterprises over domestic ones.

Current policies were yet to provide many domestic retailers with sufficient assistance, resulting in their failure to gain sufficient and quality retail space, said Saigon CoopMart Board Chairman Nguyen Van Hoa.

Meanwhile, most domestic retailers were small in size with insufficient financial capacities, weak competition and human resources as well as inadequate infrastructure facilities, Hoa added.

He called on the Ministry of Industry and Trade to draw up effective policies focused on supporting firms in finance and personnel training.

A representative from the Ha Noi Trade Corp agreed, urging the State to consider offering incentives to retail enterprises that pioneered developing distribution channels in remote areas.

Closer co-operation between local retailers would be a good way for firms to compete against foreign rivals, he noted.

In order to solve difficulties facing enterprises, Hoang said the ministry would help develop local distribution-retail industries.

"We would consider allowing joint ventures between Vietnamese and foreign companies, in which domestic firms would hold 51 per cent stakes, to encourage the use of the locally made goods," Hoang added.

The ministry would also co-ordinate with the Ministry of Natural Resources and Environment to develop land sources for retailers and distributors while working with the Supreme People's Court to deal with trade suits.

Following five years as a WTO member, the Vietnamese retail industry has asserted its role in the country's economy.

The establishment of supermarkets, shopping centres and convenience stores had modernised the habits of Vietnamese customers, said deputy head of the Ministry of Industry and Trade's Domestic Market Department Hoang Van Nam.

There were 638 supermarkets and 117 shopping centres in the country by the end of 2011, Nam confirmed.

The ministry planned to develop domestic distribution networks to make them more professional and modern.

Viet Nam is considered an attractive retail market, with the total retail value of goods and services reaching more than US$90 billion last year, an increase of 24.2 per cent compared to 2010.

In 2011-20, it is forecast that the local retail market would grow by 10 per cent annually, with domestic goods accounting for 20 per cent of GDP.

Consumers pick highest quality companies

The Association of Vietnamese High-Quality Goods Producers yesterday published a list of 419 certified enterprises for 2012, selecting them from 716 companies voted by domestic customers.

Joint stock companies comprised 41.8 per cent of listed enterprises; 31.7 per cent were limited companies; 8.8 per cent were foreign investment companies; 3.3 per cent were private; and 2.4 per cent were State-owned.

The sectors that were well-represented were non-alcoholic beverages, pharmaceuticals, fish sauce, spices, dried foods, instant foods, sewing, embroidery and confectionery goods, said the association.

The association's survey on consumer awareness of brand names found that factors that affected purchasing decisions included trademarks, easy access to the product, price and consumption habits.

Around 72 per cent of consumers remain devoted to traditional markets and 28 per cent of them use modern distribution channels such as supermarkets and convenience stores.

On this occasion, association chairwoman Vu Kim Hanh introduced the project "Bringing Vietnamese goods to traditional markets" which is expected to increase the competitiveness of Vietnamese products and contribute to a sustainable development network of traditional markets in towns and cities nationwide.

Small businesses seek official help

Faced with capital shortages, higher production costs and a fall in overseas demand, small- and medium-sized enterprises (SMEs) in HCM City have asked the local government for help.

Nearly 60 per cent of SMEs do not have enough capital to maintain their production, according to Pham Ngoc Hung, deputy chairman of the HCM City Union of Business Associations.

Speaking at a meeting held in HCM City yesterday between city officials and business representatives, Hung said that many enterprises had had difficulty accessing capital from banks, leaving many of their projects at a standstill.

Interest rates on bank loans fell this year but remained high at more than 20 per cent, making it difficult for companies to earn profits. An increase in input costs has also caused problems for companies, especially SMEs.

In general, production costs have risen 30 per cent, but sale prices have increased by only 5-7 per cent, eating into profits, according to Hung.

For some companies, losses have occurred because of higher costs for materials, salaries, social insurance fees, land rentals, electricity and other services.

Tran Viet Anh, chairman of the Thu Duc Business Association, said companies were also paying too much tax for plastic bags.

Under the Environmental Protection Tax Law, environmentally friendly bags are not taxed, but companies often pay tax on the bags because there is no agency to verify which bags are classified as environmentally friendly.

As a result, tax agencies imposed the tax on all plastic bags, pushing up costs further. Agencies should devise a strategy to deal with the problem, Anh said.

Nguyen Trong Hanh, deputy head of the city's Taxation Department, said tax agencies had had problems assessing tax on plastic bags because the Ministry of Natural Resources and Environment had not developed any standards regulating environmentally friendly plastic bags.

In addition to rising costs, companies are also facing lower demand from importers because of economic difficulties globally.

For example, the garment and textile as well as leather and footwear industries have reported a significant drop in export orders this year, with some enterprises in the footwear industry reporting a drop of 30-40 per cent in export contracts.

Other problems for companies include labour shortages, especially for skilled workers, and cumbersome administrative procedures.

The city's Union of Business Associations urged local officials to help businesses access capital at lower interest rates so they could continue production and ensure work for employees.

Dang Duc Thanh, general director of Can Nha Mo Uoc Investment JS Company, said: "The municipal government should develop measures to rescue the property sector. If that sector developed, other industries like steel, construction materials would follow."

Meeting participants also asked the State Bank of Viet Nam to reduce interest rates on loans and set a ceiling on these rates.

A representative of the State Bank of Viet Nam's HCM City branch said the bank had provided loans for 87 per cent of applicants last year. The remaining 13 per cent of applicants did not meet loan qualifications. He also asked commercial banks to provide loans in foreign currency to companies with sufficient conditions to borrow US dollars.

They also requested that relevant agencies review the policy on land-use fees, saying that the fees should be lowered.

In addition, business representatives asked the city to contribute to social insurance payments for employees. Companies and their employees combined now contribute an average of 30.5 per cent for premiums, compared to 27 per cent previously.

New decree governs NGOs

The Government issued Decree No 12/2012/ND-CP on March 1, regulating the registration and operations of foreign non-governmental organisations (NGOs) in Viet Nam. The decree governs non-governmental and non-profit organisations, social funds, private funds, and other forms of organisations incorporated under foreign law which supports development efforts, humanitarian aid, or other non-profit purposes in Viet Nam.

NGOs seeking to operate in Viet Nam must have legal status under the laws of country of incorporation, have charter setting forth clear principles for operation, and have plans for programmes, projects or non-project assistance in compliance with social and economic policies of Viet Nam. The term of an operating licence for a foreign NGO is three years and can be extended.

Decree No 12 takes effect on June 1 and replaces Prime Minister's Decision No 340/QD-TTg of May 1996.

Decree regulates assets subject to security interests

The Government issued Decree No 11/2012/ND-CP on February 22 amending Decree No 163/2006/ND-CP of December 2006 on secured transactions. Under the decree, security interests can be formed in (i) assets securing loans, (ii) assets to be formed or legally constituted by the time the security interest is created, and (iii) assets that have been formed and are subject to ownership registration, but can only be registered after the security interest is created. Such future assets cannot include the land-use rights.

Where motorised vehicles, inland water transport vehicles, railway vehicles are sold without notice to or prior consent of the mortgagee, Decree No 11 requires that the vehicle registration authority must submit a written notice of reregistration or deregistration. This provision aims to prevent mortgaged vehicles from being transferred without the prior consent of the mortgagee.

Decree No 11 also provides guidelines with respect to the sale of other secured assets. Where it is mutually agreed to that secured assets be sold at auction, the prevailing laws on auctions will apply. Otherwise, the sale of secured assets will be subject to the agreement of the parties or subject to an appraisal by a licensed appraisal organisation prior to sale.

Decree No 11 takes effect on April 10.

Regulations drafted on import, export of medicines

The Ministry of Health recently invited public comment on the tenth draft of a circular to regulate import and export of medicines by foreign-invested enterprises (FIEs). Under the draft, only FIEs licensed and certified to import and export medicines would be permitted to do so. Such FIEs must have storage facilities in compliance with Good Storage Practices (GSP) standards. FIEs would be prohibited from distributing medicines in Viet Nam.

Seafood proceesor exports 15% more

Quoc Viet Seafood Processing's export turnover in the first two months surged by 15 per cent over the same period last year, posting a profit of US$16 million. The company's exports to Europe remain stable at present.

General director Ngo Van Nga said the company's shrimp exports to the US accounted for 30 per cent of the total value of all shrimp exports.

Quoc Viet Company is the country's second largest shrimp exporter after Minh Phu Seafood Corporation and is the country's fourth largest fisheries exporter.

Minister welcomes Belgian trade group

Projects in Viet Nam involving Belgian enterprises, particularly infrastructure construction projects, have achieved good results, according to Minister of Transport Dinh La Thang.

Thang was speaking at his meeting with a visiting Belgian economic delegation, led by Crown Prince Philippe, in Ha Noi yesterday.

Thang said he highly valued Belgian enterprise activities in the development of seaports and seaport services.

He expressed appreciation towards Belgium for selecting Viet Nam as the only nation in Asia that still received official development assistance from Belgium.

Thang said he would offer favourable conditions to help with Belgian enterprises' investment in the country.

For his part, Prince Philippe said Belgium hoped to be a gate to Europe for Viet Nam and it would promote co-operation with Viet Nam in the fields of infrastructure development, logistics and railways and port management.

On the same day, during talks between Foreign Minister Pham Binh Minh and Belgian Deputy Prime Minister-cum-Foreign Minister Didier Reynders, the two sides discussed issues aimed at enhancing relations between the two countries.

They agreed to increase exchanges of delegations and to organise activities for next year to celebrate the 40th anniversary of the establishment of their diplomatic ties.

The two sides agreed to boost co-operation in various fields such as politics, economy, education and agriculture and promote the implementation of signed agreements between the two countries.

They also agreed to create favourable conditions for businesses and investors seeking partnerships, and carrying out market research, in the fields of infrastructure, seaport development, logistics and health care.

Today the Belgian delegation is due to travel to Hai Phong to visit the Dinh Vu Industrial Zone, a project in which Belgian enterprises have invested.

BIDV targets 18% growth

The Bank for Investment and Development of Viet Nam (BIDV) has officially revealed its business plan at the first shareholders' meeting last Thursday.

This year, the bank has targeted 18 per cent growth in total deposits. The total outstanding loans are expected to increase by 17 per cent and the pre-tax profit to increase by 36 per cent compared with 2011. Accordingly, bad debts are estimated to remain below 2.8 per cent and the return on equity to reach 17 per cent.

WesternBank posts $7.6m profit

The Western Commercial Bank (WesternBank) has announced its 2011 pre-tax profit of VND161 billion (US$7.6 million), a 148 per cent year-on-year increase.

Total asset value reached VND20.5 trillion ($979.7 million), up 118 per cent on 2010.

The bank hopes to expand credit growth by 15 per cent this year, along with a total asset value increase of 15-20 per cent. It also expects profits to jump by 14 per cent during the year.

PPI seeks investors for project transfer

Pacific Property and Infrastructure Development Joint Stock Co. (PPI) has said it wants to find investors for joint investment or to transfer two property projects in HCMC’s Thu Duc District.

PPI early last year planned to develop PPI Tower worth VND313 billion and consisting of office and apartment sections in Hiep Binh Chanh Ward, Thu Duc District. Under the plan, the 15-floor project would be completed this year and provide 80 apartments and around 8,000 square meters of office space for lease.

However, an area of around 2,400 square meters for this project is currently being put up for sale at a price of VND29 million per square meter.

Besides, PPI is seeking a partner or investor for a complex of luxury apartments, commercial and service sections near the Saigon River named Water Garden and also located in Hiep Binh Chanh Ward, Thu Duc District.

According to some market observers, the property market has now turned quiet, and this is a chance for capable investors to make investments through mergers and acquisitions (M&A).

The current stagnation on the local property market has created many investment chances for foreign firms who have cheaper capital sources, according to Savills Vietnam.

Savills said that the number of fund management companies and real estate investment funds would increase. Besides, the market is still seen to contain many long-term potentials and opportunities for investors.

For example, foreign investors in 2007 found it hard to acquire good land sites, but similar sites were widely offered for sale last year. However, the price and evaluation are what decide the success or failure of the M&A transaction.