Interest reduced on dollar, euro loans

The interest rate on euro-denominated NPLs has been reduced by 0.6 per cent to reach 4.8 per cent per year, while the rate for dollar – denominated NPLs has been cut by 0.1 per cent to touch 4.2 per cent per year. — Photo bizlive.vn

The Viet Nam Asset Management Company (VAMC) has cut the applicable interest rates on euro and US dollar-denominated non-performing loans (NPLs) purchased from credit institutions.

Accordingly, the interest rate on euro-denominated NPLs has been reduced by 0.6 per cent to reach 4.8 per cent per year, while the rate for dollar – denominated NPLs has been cut by 0.1 per cent to touch 4.2 per cent per year.

However, the interest rate on Vietnamese dong-denominated NPLs remains unchanged at 9.6 per cent.

The new interest rates are applicable in the first quarter of this year, from January 1 to March 31.

As per Circular 19, the State Bank of Viet Nam requires VAMC to review and adjust the interest rates applicable on purchased NPLs in keeping with the repayment capacity of the borrowers, the interest rates prevalent in the market and based on the agreement with customers. These interest rates will be publicised by VAMC quarterly.

This is the seventh time VAMC has announced an adjustment in interest rates applicable to purchased NPLs. The company had adjusted interest rates for the first time during the second quarter of 2014, when it decided to significantly cut interest rates on NPLs bought in dong from 15 to 18 per cent per year to just 10.7 per cent per year.

VAMC General Director Nguyen Huu Thuy said the company acquired bad loans worth nearly VND111 trillion (US$4.84 billion) at book value from credit institutions last year, in exchange for special bonds.

The VAMC has purchased bad debts worth VND243 trillion ($10.6 billion) since its launch in 2013.

Besides the NPL acquisition, VAMC and the credit institutions have so far together retrieved NPLs worth VND22.783 trillion ($994.8 million) by selling loans and secured assets.

Site for customs checks to be built at Moc Bai border gate

A goods storage site for joint checks between Vietnamese and Cambodian customs forces will be constructed at the Moc Bai International Border Gate in the southern province of Tay Ninh under a project recently approved by the provincial People’s Committee.

Accordingly, Tan Cang Hiep Luc JSC - a subsidiary of the Tan Cang Sai Gon Corporation will be the investor of the project, which will cover an area of 8,000 ha and include storage facilities, working offices and parking lots.

It aims to ease increasingly serious congestion at the Moc Bai border gate and also for its Cambodian counterpart, the Bavet border gate, thus facilitating trade activities between the two countries.

Kieu Cong Minh, deputy head of the economic zones management board in Tay Ninh, said the project will create a foundation for deploying a one-stop-shop customs model for exports and imports at the Moc Bai-Bavet border gates, under an agreement signed between the two Governments.

Once completed and operational, the site is expected to facilitate w ork of customs officers when conducting joint checks on export and import goods.

Footwear industry exports to grow 20 per cent

Export value of the domestic leather and footwear industry could grow between 15 per cent and 20 per cent this year due to opportunities from free trade agreements (FTAs).

At a conference on production, export and import of leather and footwear in Ha Noi yesterday by the Viet Nam Leather and Footwear Association (Lefaso), Deputy Minister of Industry and Trade Ho Thi Kim Thoa said signing of negotiations on the Trans Pacific Partnership (TPP) deal and other FTAs would present more opportunities in production and business for Viet Nam's enterprises, including firms from the textile, garment, leather and footwear industries, reported online newspaper bnews.vn.

"To take advantage of those agreements, the local leather and footwear industry should prepare material at home to join preferential tariffs from the deal when exporting their products to the US, the European Union and some other markets," Thoa said.

Nguyen Duc Thuan, Lefaso chairman, said the local leather and footwear industry will have more business opportunities from the agreements, including the TPP, but those agreements will also create more challenges for the export activities of local footwear firms.

However, buoyed by the recovery in the economy and trade activities, the local firms expect to achieve high growth in revenue this year, he said. To ensure that, they should implement technology to improve production.

Last year, the domestic leather and footwear industry gained a year-on-year increase of about 16 per cent in export value to US$15 billion, including $12 billion from footwear, and $3 billion from handbags.

This year, the industry expects to reach a growth rate at 15-20 per cent in export value due to leftover development from last year and more export opportunities from the FTAs, especially from the ASEAN Economic Community and the TPP, Thuan said.

In 2015, traditional markets of the local footwear products registered high exports as against 2014, including the US with growth rate at 20 per cent, the EU at 10 per cent, and China at around 50 per cent.

The local footwear firms had also initiated reforms in production to increase productivity and quality of products, and also sought and expanded their export markets, he said.

A representative of the Phong Chau Leather and Footwear Company said last year, the company expanded its export markets to Africa and the ASEAN countries so its export value increased between 5 per cent and 7 per cent in 2015, as compared with 2014.

This year, the company will promote exports to those markets, while seeking out new export markets and increasing investment for expanding production scales.

SME support law needed

There’s a need to build a law to support small and medium-sized enterprises, according to several experts in the field.

The SME community has become an important part of the economy, making up 95-97 percent of enterprises in the country, contributing over 40 percent of GDP and creating more than 50 percent of employment, said Tran Ngoc Liem, Deputy Director of the Vietnam Chamber of Commerce and Industry ( VCCI ) - Ho Chi Minh City Branch.

Thus, supporting SMEs is crucial to maintaining the economy’s driving force, especially in the context that ASEAN, of which Vietnam is a member, has approved the Strategic Action Plan for SME Development 2016-2020, he added.

To support SMEs, there’s a need to give priority to administrative procedure reforms, as a number of regulations from the current laws are overly complicated for small and medium sized enterprises, according to Hoang Van Son from the VNC Law Office.

He also said the new laws should delete unnecessary fees and charges, with the aim of reducing the financial burden on business and production activities.

Recent surveys showed that most SMEs have not attached much importance to market research, product promotion activities or building business culture.

SMEs need to be provided with market information, and trade promotion support, so that they can develop strategies and the business culture, for sustainable development and improving competitiveness, said experts.

Vinh Phuc seeks to export farm products

The northern province of Vinh Phuc plans to expand cultivation of its strongest exports in farm produce, such as red-flesh dragon fruit, Hong aromatic bananas and chayote (a type of gourd.)

Recently, local authorities signed memoranda of understanding (MOU) on cooperation in production and export of agricultural products with enterprises from Taiwan, Japan and Malaysia.

The province has been accelerating agriculture restructuring, focusing on developing its strongest products for large-scale production using high-tech methods.

It has zoned off an area for cultivating safe vegetables by 2020, and has so far outlined 39 safe vegetable production practices.

As many as 113 agricultural production establishments were recognised to meet safe vegetable production regulations, while 35 others received Vietnam Good Agriculture Practices ( VietGap) certificates.

To realise its objectives, the locality is calling for investment in agriculture and hopes to attract interest from many domestic and foreign investors.

A red dragon fruit growing project was piloted in Lap Thach district from 2011-2013 on an area of 100 ha. Annual profit from the fruit reached around 350-400 million VND (15,750 – 18,000 USD) per ha.

Thousands of hectares of Hong aromatic banana and chayotes are also being planned for Tam Dao, Yen Lac and Vinh Tuong districts.

EVN to add 22 power projects to rural programme

The Electricity of Vietnam (EVN) group said it has completed investment preparation for a series of rural power supply projects, to commence in the 2015-2020 period.

The Ministry of Industry and Trade has approved EVN’s feasibility research reports of 22 electricity projects in rural and island areas in the period under the Electricity Supply Programme for rural, mountainous and island areas in 2013-2020, ratified by the Prime Minister.

EVN will work as the coordinator of the projects and its subsidiaries: North, Central and South Power Corporations will be investors.

According to the group, 21 out of the 22 projects will supply electricity from the national grid to local communities, and one will source electricity from a combined electricity production network of wind, solar energy, and diesel-fueled systems.

Over 7,236 km of medium voltage lines, over 13,640 km of low voltage ones , and more than 8,500 transformer stations will be built during the period, benefiting over 262,500 rural households in 22 provinces and cities nationwide.

The projects are expected to contribute to promoting poverty reduction and socio-economic development in benefiting localities.

Three more fish breeding facilities earn Global Gap certificate

Three more Tra fish breeding facilities in Tieu Can District of the Mekong Delta province of Tra Vinh have earned the Global GAP certificate.

The three facilities - Tieu Can in Hung Hoa Commune, My Kieu in Tieu Can town and Kim Loan in Tap Ngai Commune- produce a combined 11.5 million fish fry a year.

Director of Tra Vinh aquacultural breeding centre Le Tan Thoi said the centre has assisted local small-scale breeding facilities in adapting to international standards in aquaculture, particularly in breeding Tra fish.

The fish is an export staple of the province, which is facing technical barriers in many markets in the world. The supply of fish fry meeting international standard will help ensure the quality of products for export, Thoi said.

In 2014, a cooperative of Tra fish farmers in Tra Vinh became the first small-scale fish farm in Vietnam to be awarded the Global GAP certificate for their 1.2 ha fish farm.

However, dropping prices of tra fish have discouraged local farmers. Last year, only 20 households in the province raised the fish on a total area of 10.4 ha, producing an output of 4,300 tonnes.

Wood firms seek new business strategies

Wood enterprises gathered at a workshop in Ho Chi Minh City on January 20, to map out business strategies in 2016.

The event was held by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA).

Chairman of the HAWA Nguyen Quoc Khanh said 2016 is opening up excellent opportunities for the wood sector, especially with Vietnam having joined the ASEAN Economic Community last year, and signed a series of new-generation free trade agreements (FTAs).

Businesses should have a new vision to orient their development in the light of global integration, he said.

Chairman of the Truong Thanh Furniture Corporation Vo Truong Thanh, suggested businesses should maintain many sources of material supply which can guarantee criteria on product origins - in accordance with the commitments of the free trade agreements.

This will help businesses secure their foothold in the domestic market and boost export activities, he said.

Meanwhile, Chairman of the Woodland Co. Ltd Vu Hai Bang, warned that the pressure on labour resources will become heavy if the Trans-Pacific Partnership (TPP) Agreement comes into effect, and more foreign direct investment (FDI) businesses enter Vietnam .

To ensure sustainable development, wood companies should increase investment in design and imaging - to develop recognisable brand names, he suggested.

While it is advisable for business players to devise their own strategies to join the free trade markets and economic integration, experts noted that embracing links in the field is important to enhance competitiveness.

The HAWA should serve as a bridge for businesses to set up a chain of material supply and demand, along with production and distribution.

Businesses could work together to share experience in technological transfer, improve management capacity, and human resources training, experts said.

Support to help craft villages build own brands

Supporting craft villages to build their own brands amidst strong international integration is a priority of the Vietnam Association of Craft Villages (VACV), said Chairman Luu Duy Dan on January 20.

At the VACV’s 10th founding anniversary celebration in Hanoi, Dan said his organisation will actively help its members build brands, register trademarks, and export products.

The VACV will step up personnel training for small-and medium-sized enterprises, especially in business administration, international practice and e-commerce, as Vietnam is strongly integrating into the world.

To revitalise craft villages, the association will help the villages cooperate with one another, modernise production and environmental treatment technologies, and create highly aesthetic products. More exemplary artisans will also be honoured, Dan said.

He noted that the VACV has organised over 200 fairs, exhibitions and customer meetings over the past decade to promote the sale of handicrafts. It has also offered training to over 8,330 craft students, and honoured 57 outstanding craft villages and over 330 artisans.

The association has worked with partners from Japan, the Republic of Korea, China and Germany, the Japan International Cooperation Agency, and the UN Development Programme to advertise the villages’ products, he added.

Data shows that Vietnam has 5,096 craft villages, including over 400 traditional ones. It boasts more than 200 types of handicrafts with many of them dating back centuries ago such as Van Phuc silk, Ngu Xa bronze products, Bat Trang ceramics, and Kim Bong wood products.

HCM City eyes boost for suppliers

The Ho Chi Minh City People's Committee is likely to approve a project to promote support industries next month, heard the "Vietnam - Japan Supporting Industry Forum".

Referring to the ‘Supporting Industry Development' project,' Nguyen Phuong Dong, deputy head of the city Industry and Trade Department, told the forum on January 19, "We will submit solutions and detailed plans to promote the industry soon."

The project will seek to analyse the status of supporting industries in the textile-garment, footwear-leather, electronics-IT, automobile manufacturing and assembling, mechanical fabrication, and hi-tech sectors, and seek the best producers for making products for them.

A HCM City Supporting Industry Development Centre would be established to support the industries, department officials said.

The Government had, in a decree last November, announced the latest incentives for supporting industries. The income tax rate is now 10 percent for the first 15 years after initial waivers, import tax is waived on goods used to create fixed assets and the six supporting industries can pay value-added tax on revenues on a monthly, quarterly or yearly basis.

Yasuzumi Hirotaka, head of the HCM City office of the Japan External Trade Organisation (JETRO) said that the city should set up a fund to provide low-interest credit for companies in the supporting industries.

The city has set up a series of funds to support small- and medium-sized enterprises (SMEs), but most SMEs do not have assets to mortgage.

"The city also has a fund SMEs can borrow from without a mortgage if they have good projects," Dong said.

The Government has also mandate that SMEs in supporting industries can borrow up to 70 percent of their capital on the basis of guarantees provided by the Credit Guarantee Fund for SMEs.

The city is earmarking a 200ha area exclusively for supporting industries at the Hiep Phuoc Industrial Park in Nha Be district.

In mid-March a meeting of supporting industry companies in Vietnam, Japan and ASEAN will be held in HCM City.

Phu Hung Securities Corporation operates after merger

The State Securities Commission (SSC) of Vietnam on January 20 granted a certificate of operation to Phu Hung Securities Corporation (PHS) after the company merged with Hanoi-based An Thanh Securities Company (ATSC).

According to PHS General Director Chia Ken Chen, the merged enterprise has chartered capital of 202.5 billion VND (9.03 million USD). He said that the share swap ratio for PHS shareholders is 0.482, and for ATSC shareholders it is 0.857.

The shake-up process has been made to ensure investors’ rights and interests, Chia Ken Chen underscored.

At the granting ceremony, SSC Vice Chairman Pham Hong Son stated that the merger of the two securities companies is part of the nation’s process to restructure the stock market.

During 2011-2015, the SSC reduced the number of securities brokerage companies by 25, accounting for 25 percent of the licensed firms, Son underscored, adding that improvements can been seen in the financial situation of the remaining securities companies as a result.

Japanese firms bring information technology to Vietnam’s farms

Japanese experts will pilot measuring about 1,000 square metres of farm land in the northern province of Ha Nam to collect information and plan suitable production.

The systems for collecting information about local land and weather will be installed by Fujitsu, a Japanese information and communication technology company.

The information then will be transmitted to Aeon Agri Create Co., Ltd, which has been coordinating 19 farms in Japan, for further analysis and directions.

The Vietnam Women’s Union, the only local organisation partner in the project, is tasked with updating the market prices of local produce. Farmers can access the information through their mobile apps.

Complex agricultural distribution in Vietnam has made it difficult for growers to be aware of the prices of their products when they reach consumers. The project could help them understand the market and be ready for popular, profitable production.

Previously, Fujitsu and FPT have announced the official completion of their FPT-Fujitsu Akisai Farm and Vegetable Factory project, which applies cloud computing technology to develop a smart agricultural model in Vietnam.

Urbanisation begets need for more housing

Viet Nam needs more drastic measures to boost housing development as the country's rapid urbanisation coupled with a young population has made it an urgent issue.

Experts said it was important to improve the living environment and conveniences as urban spaces were becoming narrower.

Tran Dinh Thien, director of the Viet Nam Institute of Economics under the Viet Nam Academy of Social Sciences, said that measures should be initiated to prevent an urban boom from becoming opportunities for property market speculation.

In recent years, urbanisation has been rapid not only in major cities such as Ha Noi and HCM City, but also in other provinces and cities such as Bac Ninh, Thai Nguyen, Quang Ninh, and Dong Nai, apart from Binh Duong and Ba Ria-Vung Tau.

Statistics showed that in 1997, only 20 per cent of the country's population lived in urban areas and real estate deals were conducted largely without bank loans. However, things have changed today when the percentage of urban residents has risen to 34 per cent of the population and bank loans have become more popular for real estate transactions.

With an anticipated population of 51 per cent in 2016 with the trend of smaller households, housing demand in urban areas would keep rising, especially the demand for social housing projects.

A senior expert of the Noruma Research Institution was quoted by the Vietnam Finance newspaper that the support policies for social housing development in Viet Nam remained ineffective as only a few people were lucky enough to be able to get access to preferential loans.

The newspaper cited statistics that 67 per cent of surveyed people aged between 25 and 40 did not own homes, and 60 per cent of them demanded one. Roughly 75 per cent said that they wanted a house but could not as they were financially incapable.

Experts said at a recent conference about housing issues in Viet Nam that the country needed long-term financial policies for social housing development as the government's VND30 trillion (US$1.34 billion) support package would end in June this year.

Viet Nam was urged to raise policies to support young people aged around 30, with medium incomes, to buy houses as those were in high demand.

Hidenori Hashimoto, a representative from the Japan International Cooperation Agency in Viet Nam, was quoted by the Voice of Viet Nam news website that Japan wanted to invest in social housing development for the youth in Viet Nam through official development assistance.

Accordingly, Japan and the banks might provide loan supports to those who were capable of paying back debts in five to 15 years.

Ministry puts 2015 budget deficit at 5% of GDP

Deputy Minister of Finance Vu Thi Mai said the nation’s budget deficit was VND226 trillion (US$10 billion) in 2015, equivalent to 5% of gross domestic product (GDP) but still at safe levels approved by the National Assembly (NA).

At a 2015 review conference in Hanoi on January 14, the ministry said Vietnam’s GDP was VND4,400 trillion in 2015, higher than the figure announced by the General Statistics Office earlier by VND300 trillion. If the ministry’s figure is correct, the actual overspending would be higher.

However, the exact budget deficit will only be known 18 months later when the NA approves the 2015 national budget.

According to Mai, last year’s budget collections neared VND990 trillion, or 8.6% higher than the target and rising by 14.6% from 2014. The ministry virtually met the target for central budget collections, so the Government did not have to use VND10 trillion earned from State capital divestment in case of a decline in budget collection.

Most localities realized or beat their budget revenue goals last year. Besides, the ministry imposed tough controls on overspending, with the State Treasury paying over VND736 trillion for regular expenditures.

Meanwhile, nearly 29,000 wrong spending cases were uncovered. The ministry cut the regular spending estimate of State agencies by over VND4.1 trillion to ease budget deficit.

Proceeds from Government bond sales hit over VND256 trillion last year, or 2.5% higher than targeted. Ending 2015, public debt was estimated at 61.3% of GDP, government debt at 48.9% of GDP, foreign debt at around 41.5% of GDP, which were within the levels approved by the legislature.

Regarding the 2016 targets approved by the NA, Mai said budget collections are projected at around VND1,000 trillion and spending at VND1,273 trillion, resulting in a deficit of VND254 trillion (4.95% of GDP).

To cope with the slump in oil prices, the ministry has envisaged different budget scenarios, including those for the oil prices of US$30 a barrel and less than US$30 a barrel.

Mai said crude oil-related direct and indirect collections account for only 10% of the total budget collections. Experience in 2015 suggests that falling fuel prices can leave positive impacts on economic growth and create more sources for tax collections.

Therefore, the decline triggered by the oil price plunge can be offset by the increase in budget collections from domestic sources. The ministry will strengthen budget controls to realize this target, Mai affirmed.

Besides, the ministry will enhance management to reduce regular expenditures, keep overspending within the allowed limit and control public debt in 2016, Mai said.

Sabeco pays extra VND991 billion for State budget

Saigon Beer, Alcohol and Beverage Corporation (Sabeco) had to pay an extra nearly VND991 billion (around US$44.2 million) for the State budget in 2015 as required by inspectors of the Ministry of Finance, according to the ministry.

Sabeco was forced to pay the additional amount after inspectors of the ministry launched snap probes into a business group and eight corporations including Sabeco last year, heard a recent meeting on inspections last year and plans this year.   

Tran Van Vuong, chief inspector of the ministry, did not elaborate on the additional payment of Sabeco and did not confirm whether the payment included a special consumption tax debt of VND408 billion accumulated from 2013 the State Audit asked to collect from the corporation.

In July last year, the State Audit requested a collection of the amount as it found signs of tax evasion at Sabeco when it sold products to Saigon Beer Co Ltd at discount prices and its subsidiary then sold the products to agents at higher prices to reduce tax payments.

However, Sabeco said it observed relevant regulations, including those in the ministry’s Circular 05 guiding the implementation of the law on special consumption tax.

The ministry’s inspectors said large firms usually do not report to tax agencies their real revenues and profits and do not sufficiently transfer their profits to the central supporting fund for enterprise reform and development as required.

Last year, Vietnam Engine and Agricultural Machinery Corporation paid nearly VND2 trillion for the State budget in terms of profit contribution to the fund.

Saigon Beer Co Ltd posted revenue of more than VND31.8 trillion (over US$1.4 billion) and profit of around VND4.2 trillion last year. The company paid VND7.7 trillion in taxes.

HCM City firms prepare ample goods supply for Tet

Member enterprises of HCMC’s price stabilization program have prepared plentiful goods supply to meet surging demand of local consumers during the upcoming Lunar New Year (Tet) holiday.

Le Ngoc Dao, deputy director of the HCMC Department of Industry and Trade, told a meeting on Wednesday that enterprises of the program are ready to supply goods totaling over VND16.2 trillion (US$722.6 million) for Tet, up VND462 billion year-on-year.

Enterprises pledged not to increase prices, especially of essential products of the price stabilization program, Dao told the meeting with member enterprises of the program.

Dao noted that goods prices have not fluctuated in the run up to Tet. However, she urged companies to keep a close watch on market developments and inform the department of products with signs of price increase.

Nguyen Quoc Chien, head of the pricing division under the HCMC Department of Finance, said in general goods prices were stable last year and prices of many products even dropped.

Chien said enterprises of the program have already registered prices of their goods, so prices will be stable during Tet. On top of that, there will be sharp price cuts for certain goods a few days ahead of the holiday.

Representatives of the Saigon Union of Trading Co-operatives (Saigon Co.op), Saigon Trading Corporation (Satra) and supermarket chain Big C have pledged to keep prices for their goods stable at their facilities during Tet.

Phan Van Dung, head of the sales department at Vissan Co Ltd, said the firm has stored 3,000 tons of fresh meat including pork and beef and 3,800 tons of processed products to supply the market.

But Dung is concerned about weak demand during Tet as many consumers will go to provinces for family reunion and travel out of the city during the long holiday. For fresh and processed food products, Dao called for firms to carefully check storage facilities and supermarkets to examine their display shelves to ensure food safety.

Inter-sectoral teams will strengthen inspections and controls in the coming days to make sure food supplied by member enterprises of the program meet hygiene and safety requirements.

Dao also stressed the importance of ensuring the safety and quality of goods sold through mobile channels ahead of Tet.

The Department of Industry and Trade announced an organization plan for the next price stabilization program. Dao said the program will cover groups of food, schooling items and dairy products, and call for firms to sign up before the deadline comes at the end of January.

Nguyen Nguyen Phuong, head of the department’s commercial division, said the next price stabilization program will focus on high quality products meeting VietGap and GlobalGap standards, brand building and preparations for making the most of opportunities from the Trans-Pacific Partnership (TPP) trade pact.

Pig, cow herds in city up strongly

The livestock sector in HCMC reaped success in 2015 as pig and dairy cow herds expanded sharply compared to the previous year, according to the municipal Department of Agriculture and Rural Development.

The city had a total dairy cow herd of 160,000 head in 2015, up nearly 26% year-on-year and accounting for over 58% of the national herd, heard a meeting on the department’s activities in 2015 and its plans for 2016 on January 13.

Dairy cows in the city could produce 275,000 tons of fresh milk, up 9% and making up 43% of the country’s total fresh milk output.

The department said the pig herd grew by over 30% last year to 360,000 head.

However, the department wanted the livestock sector to focus more on quality than herd expansion. Therefore, the department plans to reduce the herds of dairy cows and pigs to 100,000 and 350,000 head respectively.

A delegate at the meeting cast doubt on the feasibility of reductions in dairy cow and pig herds in the city since reality showed that numbers of cows and pigs have climbed year after year. This suggested that farmers in the fields could still earn profit.

A report of the department showed the dairy cow herd in the city increased by an average of 10% per year and milk output picked up by an average of 6% a year while the pig herd grew 4.2% per year in the 2011-2015 period.

Vinh Phuc axes delayed projects

The northern province of Vinh Phuc has got tough on long-stalled projects and those which have failed to comply with the regulations, according to the provincial Investment Promotion Agency (IPA Vinh Phuc).

The agency said on its website that seven foreign direct investment (FDI) projects whose registered capital totaled over US$300 million lost their investment certificates last year.

They included the US$76.59 million Ba Thien industrial park project of Taiwan firm Compal. Compal got an investment certificate in 2007 and pledged to develop an industrial park for technology enterprises on 327 hectares.

By the time the provincial authority decided to cancel the investment certificate, the investor had only finished ground leveling and construction of roads, and wastewater and drainage facilities.

Another big project that was invalidated last year is the US$200-million mobile phone project of Taiwan firm Foxconn. Licensed in 2008, the project was

scheduled for operation one year later, but work has yet to start on this project.

Domestic investors lost their investment certificates as well. According to IPA Vinh Phuc, the province took back the investment certificates from 14 domestic projects with total registered capital of over VND3.58 trillion last year. They included a university project of Vietnam National Oil and Gas Group, which was required to divest from non-core businesses.

However, the 2015 FDI approvals in the province were high, with 30 fresh FDI projects worth a combined US$269.48 million and 26 operational projects adding an extra US$197.15 million. In all, the total FDI pledges amounted to US$466.62 million last year, over two times higher than the target.

Meanwhile, the province’s domestic investments in 2015 almost doubled the target with around VND9.14 trillion registered for 44 new projects and VND333.25 billion for four operational projects.

Vinh Phuc now has 205 FDI and 601 domestic projects with total capital pledges of US$3.25 billion and over VND44 trillion respectively.

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