Tien Giang promotes industrial parks

Traffic flow near the Tan Huong industrial park in Tien Giang

The Mekong Delta province of Tien Giang has devised numerous comprehensive measures to fully explore local industrial parks (IPs) and industrial clusters (ICs).

Tien Giang focuses on luring investment in infrastructure facility in IPs and ICs, and developing multi-sector IPs with a wider range of products to meet domestic and export demand.

Efforts will be made in simplifying administrative procedures and facilitating operation of the investors in the IPs, such as Tan Phuoc 1, Soai Rap Petroleum Service Zone, Gia Thuan 1, 2 Clusters.

According to Cao Minh Tam, head of the Industrial Zones Management Board, the Government has approved planning for seven IPs on a combined area of over 2,083 hectares.

Currently, Tien Giang has established and put into operation four IPs on 1,101.47 hectares, with a total investment of 100 million USD and over 2.93 trillion VND (129 million USD).

Besides, the province put into operation four ICs, namely An Thanh, Trung An, Tan My Chanh, and Song Thuan. 

So far, the IPs and ICs in the province have created jobs for 92,561 labourers, 84 percent of them work in IPs.

In 2017, enterprises in the IPs target to reach 58.5 trillion VND (2.57 billion USD) in industrial production value.

EVN asked to enhance service quality

Prime Minister Nguyen Xuan Phuc has urged the Vietnam Electricity (EVN) to focus all resources to supply higher quality and more reliable power for socio-economic activities and people’s daily use.

As the major State-run firm in the power sector, the EVN was asked to improve its restructuring efforts, thus enhancing its effectiveness and competiveness.

The PM requested the firm renovate and re-arrange the power generation, distribution, retail and operation systems as well as the electricity market to ensure the introduction and effective functioning of the power wholesale market.

The PM also directed the EVN to own only six power plants with important socio-economic, security and defence significance and other plants with close links to these major plants.

The firm was also asked to make public its cost and power price, while being more determined in fighting corruption, improving service, strengthening administrative reform and improving online payment services.

The Government leader also urged the EVN to continue reducing the time it takes for businesse to access power, making Vietnam among the four ASEAN countries with shortest time for power access.

The firm was also reminded to pay more attention to the application of environmental protection during the construction of power projects, especially coal-using thermal power plants, while working to minimise environmental pollution during the operation of power plants.

Kolon Group subsidiary approved for US$220 million plant

The Republic of Korea (RoK)'s Kolon Industries Inc., a subsidiary of Kolon Group, has been licensed to invest US$220 million in a factory manufacturing KVT-1 industrial fabric for automobile tires in the southern province of Binh Duong.

According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), Kolon Industries' project was among the four biggest projects licensed in January this year, contributing to the 6.6% on-year increase in the country's total newly-registered and expanded capital, to US$1.42 billion.

The investment certificate is a landmark for the Korean firm to realise its investment capital of US$1 billion in the province.

In late 2016, Kolon Industries and leaders of the Binh Duong People’s Committee signed a Memorandum of Understanding to confirm the firm’s investment plan.

According to Kolon Industries’s plan, the US$1 billion investment capital will be disbursed in three phases. 

The first phase, with a total investment capital sum of US$220 million, will be disbursed in the 2017-2018 period and the US$600 million second phase will last until 2026. The US$1 billion mark will be hit sometime after 2026.

Establishing its first nylon production factory in 1957, Kolon Industries is currently expanding operations into four major business divisions, namely industrial materials, chemicals, electronic materials, and fashion. 

The company earns approximately US$100 billion in revenue each year. It currently has factories in the RoK, China, Indonesia, and Mexico. 

The corporation plans to globalise its business lines in automotive materials, advanced materials, optical films, chemicals, and fashion production by increasing investment in high-value products.

Its parent company Kolon Group was licensed for a US$14.1 million airbag manufacturing facility in Binh Duong in 2015.

Seafood exports to China expected to surpass US$1 billion

China is considered an emerging market of Vietnam seafood, and exports to the market are expected to hit US$1 billion this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Shrimp exports to China jumped 23% to US$431 million last year. China was the biggest consumer of Vietnam prawn which accounted for 58% of the country’s total shrimp exports to the market.

China also overcame the EU to become the second largest importer of Vietnam tra fish (catfish) with an estimated value of US$305 million, up nearly 90% against 2015.

Truong Dinh Hoe, General Secretary of VASEP, said despite its market instability and risks, China’s shrimp consumption demand tends to increase sharply, particularly now that the income of average Chinese goes up while domestic production capacity seems to grind to a standstill.

It is expected that with the current growth rate, seafood exports to China will surpass US$1 billion this year, Mr Hoe forecast.

However, VASEP said Vietnam seafood exporters will face a number of challenges as raw material prices remain high. Currently, they are around 10-30% higher than those in India and Thailand.

Hue EZs, IZs target 20 projects   

Central Thua Thien- Hue Province aims to attract 20 projects to its economic zones (EZs) and industrial parks (IPs) with total registered capital of some VND6 trillion (US$264.3 million).

To this end, the province’s Economic Zone and Industrial Park Management Board will launch investment promotion programmes that focus on fostering partnership with investors having adequate financial resources in infrastructure, Nguyen Que, deputy head of the board, said.

According to Que, currently, the board is working with major domestic firms, including FLC Group, VinGroup, Bitexco and Viglacera, and strengthening coordination with foreign partners, including JICA, KOICA and JETRO, in investment promotion.

For projects being implemented in the Chan May-Lang Co EZ, provincial authorities have been assisting in the construction process and in capital disbursement, including the second phase of the Lang Co Laguna, Minh Vien Lang Co Resort, Wharf 3 at Chan May Port; infrastructure of Viglacera’s industrial park; Bitexco’s Lap An eco-tourism project; and infrastructure of Sai Gon-Chan May industrial and non-tariff zone.

According to Nguyen Van Cao, chairman of Thua Thien- Hue People’s Committee, the province has implemented a number of measures to boost investment, such as improving investment and business environment and addressing issues in the aftermath of the sea environment incident that occurred last year.

In the future, Thua Thien Hue will also enhance the quality of business associations and trade organisations for better connectivity among enterprises. The province will invest over VND2 trillion in socio-economic infrastructure and industry development programmes in 2017.

At the same time, this central province will also restructure its vocational training system and step up administrative reform, striving to conduct over 50 per cent of its administrative procedures online, and apply the one-door model at the provincial and district administration centres, thus raising the satisfaction rate for implementing administrative procedures among residents and businesses to over 80 per cent, Cao said.

Last year, local EZs and IPs attracted 14 projects with total investment of nearly VND4.9 trillion, bringing the total number of projects located in their facilities to 140, worth over VND63.7 trillion. Of the projects, 36 are run by foreign investors, with registered capital almost reaching VND31.2 trillion. 

HCM City seeks new social housing models     

HCM City Party Secretary Dinh La Thang has urged local authorities to consider implementing a social housing policy that has helped attract more investors in Binh Duong Province.

Thang said that HCM City wanted to provide more housing to lower-income workers, but that implementation had been difficult as investors were often reluctant to pour money into such projects.

Thang asked Binh Duong Province’s authorities during a recent meeting in the province to help HCM City officials develop a better social housing policy.

He said that administrative procedures on such buildings, which usually contain apartments of 25-35 square metres, could be as streamlined as those used for commercial housing.

Tran Thanh Liem, vice chairman of Binh Duong’s People’s Committee, said that 25 out of 43 social housing projects in the province had been completed and put into use, with a total area of 491,000 sq .m and an average price of VND4 million (US$177.8) per sq metre.

The Investment and Industrial Development Corporation (Becamex IDC) is the main investor of social housing projects in the province, which has 2 million people, 52 per cent of whom are migrants from other provinces and cities.

Liem said the province, before providing land to property companies to build social housing, ensured that all people affected by new housing projects received compensation payments.

Around 200 enterprises in the province’s industrial parks have built a total of 270,000 sq .m of housing space for their workers.

Liem said the province had issued regulations, as part of its industrial development plan, that require land be set aside for housing for workers.

The province has also streamlined administrative procedures for investors in social housing.

Nguyen Van Hung, CEO of Becamex IDC, said that regulations for social housing eligibility should be adjusted and that anyone who has job but who has never owned a house should be allowed to buy social housing.

Vice chairman of HCM City People’s Committee, Le Van Khoa, said the regulated maximum profit for investors in social housing of only 10 per cent was too low to attract investors.

Hung said that Becamex IDC was not yet earning profit from its social housing projects in the province, but expected to see profits over the long term.

He said that companies willing to wait for profits over the long term should work with the government to offer accommodation for workers.

Most social housing projects in Binh Duong Province are near urban areas and industrial parks, which attract a large number of workers.

This, in turn, helps attract investors who want to open companies and factories in urban areas and industrial parks built by Becamex IDC, the representative said.

The need for low-income housing in the country is emphasised in the government’s National Housing Development Strategy.

Last year, an additional 0.5 million sq metres of social housing in urban areas were built, raising the total area to 3.3 million sq metres.

Prime Minister Nguyen Xuan Phuc recently instructed several agencies and all local authorities to improve housing availability.

He has asked provincial and city People’s Committees to provide land and simplify administrative procedures to encourage property companies and enterprises with a large number of workers to build social housing, especially for workers at industrial parks. 

He said that localities must ensure the quality of social housing, as well as traffic, health care, educational and cultural conditions, near the housing projects.

Phuc has also asked the Ministry of Construction to conduct research on new materials to help reduce prices of social housing.

Regulations require that localities in the country allocate 20 per cent of funds received from investors in new urban zones and commercial buildings (of less than 10 hectares) for social housing projects, Phuc said. 

Furniture firm gets delisting warning     

The Ho Chi Minh Stock Exchange (HOSE) has sent a delisting warning to Truong Thanh Furniture Corp. (TTFC) after its losses surpassed its charter capital.

The TTFC’s revenue report for the fourth quarter of 2016 says the post-tax income for stockholders was minus VND145.7 billion (US$6.5 million), with a yearly accumulated loss for 2016 of VND1.62 trillion ($72.9 billion) on December 31, 2016.

The company’s actual chartered capital is just VND1.44 trillion ($64.8 million).

The company’s stock, coded TTF, had been trading under special supervision after its financial report on 2016’s second quarter documented a large amount of loss and an allegedly retroactive adjustment that seriously impacted its business and financial situation. The HOSE had to step in and act on behalf on investors.

As such, if the final comprehensive financial report for 2016 from TTFC lists accumulated losses surpassing its chartered capital, HOSE would commence procedures to delist TTF stock from the exchange.

However, after two consecutive drops on the exchange, TTF had successfully swum upstream during Tuesday. With a rise of 6.8 per cent, TTF stock was standing at a ceiling price of VND5,000 ($0.22) per share, with successful transactions of over 1.2 million units and a surplus of nearly 70,000.

The company has had to take out a series of loans to make up for losses in 2016, mostly short term financial ones amounting to VND2.6 trillion ($117.1 million) and long term ones worth VND30 billion ($1.35 million).

According to the company, these loans have served to increase working capital needed for production.

The company’s largest debtor so far is the Viet A Bank with VND653 billion outstanding ($29.4 million), followed by Dong A Bank with VND124 billion ($5.58 million).

VN’s steel, iron import value rose 30%    

Viet Nam’s import value for steel and iron products continuously surged sharply in the first month of 2017 to US$710 million, the General Statistics Office reported.

The value rose by up to 30 per cent against the same period last year.

Last year, the import value of steel and iron products was also high at $8 billion, up 7.3 per cent against the previous year. The imports were mainly from China (accounting for 55.1 per cent), South Korea (12.8 per cent) and Taiwan (8.9 per cent).

As a large import steel volume from China has caused major damage to domestic steel production, the Ministry of Industry and Trade has decided to apply trade defence measures to ensure fair competition with imported products and promote the country’s steel sector.

For this purpose, certain kinds of steel ingots and long steel imported into Viet Nam from various countries and territories have been subject to temporary safeguard duties of 23.3 per cent and 14.2 per cent respectively.

The steel industry is likely to enjoy 10-12 per cent growth next year, said the Viet Nam Steel Association. 

PM hails JETRO's efforts urging Japanese investment

Prime Minister Nguyen Xuan Phuc has lauded the Japan External Trade Organisation’s (JETRO) co-ordination with Vietnamese agencies on a programme calling for Japanese investment in Viet Nam in the first half of 2017.

At a meeting with JETRO Chief Representative in Viet Nam Atsusuke Kawada in Ha Noi on Tuesday, the PM stressed that the programme was aimed at introducing Viet Nam’s image, socio-economic development, investment environment, co-operation potential and opportunities to Japanese firms, especially small- and medium-sized enterprises (SME).

He said Japanese SMEs’ creativity and high technology was required for Viet Nam’s startups.

Phuc expressed hope that the two sides would work hard to make Japan the largest investor in Viet Nam, thus contributing to socio-economic development of the country.

He asked Vietnamese agencies to co-ordinate closely with JETRO to popularise partnership, investment and trade opportunities in Viet Nam among the Japanese business community.

The government leader noted that Viet Nam was set to welcome the Japanese emperor and queen, asserting that the visit was a good sign for bilateral relations.

For his part, Atsusuke Kawada said although Japan ranked second among foreign investors in Viet Nam, it operated 549 projects in the Southeast Asian country in 2016, the largest number in comparison with other foreign investors.

This showed Japan’s interest in the Vietnamese market, he said, adding that JETRO has also been regularly consulted by Japanese firms on investment in Viet Nam.

By the end of December 2016, Japan undertook 3,280 foreign direct investment (FDI) projects in Viet Nam, with total registered capital of US$42.05 billion, accounting for 14.3 per cent of FDI capital in the country.

With this result, Japan ranked second among 116 nations and territories investing in Viet Nam.

Further, besides undertaking significant investment in Viet Nam, Japan was also a large trade partner of the country. Import and export turnover between the two countries reached an average growth rate of 13.9 per cent per year in the last 10 years. The turnover increased from $9.93 billion in 2006 to about $30 billion in 2016.

This figure is expected to reach $60 billion by 2020.

Last year, Viet Nam earned nearly $14.68 billion from the export of goods to Japan. Japan has become Viet Nam’s second largest export market, behind the United States.

To boost growth, businesses of the two countries have been actively seeking opportunities from the Viet Nam – Japan Economic Partnership Agreement (VJEPA), which was signed in December 2008 and came into effect in October 2009.

According to commitment, Việt Nam committed to eliminating some 90.6 per cent of tariff lines for Japan within 16 years, while Japan pledged to eliminate some 94 per cent of tariff lines for Việt Nam within 10 years.

Since then, thousands of import and export tariff lines have been reduced to zero per cent, enabling many enterprises to increase their exports.

Vietnamese goods exported to Japan are diversified, including textiles and garment products, seafood, computers, and electronic and components products, as well as shoes and sandals, timber products and glass.

Viet Nam’s export to Japan is expected to increase in the next years and continue maintaining high growth rate. Insiders said when their products were successfully exported to Japan, it meant they could now conquer other strict markets.

Vietnamese businesses will continue taking advantages of VJEPA, going along with relevant agencies to jointly implementing promotion programmes and connecting with Japanese businesses to raise exports.

Meanwhile, many Japanese firms have set up factories in Viet Nam to supply products for the domestic market and export to their country.

A survey of 1,027 Japanese enterprises conducted last year by JETRO showed that more than 60 per cent of Japanese enterprises investing in Viet Nam had plans to expand their business in the country.

Some 85 per cent of the enterprises said they would expand to increase revenue, while 65 per cent said they saw a high potential for economic growth in Viet Nam. 

Australia eases ban on uncooked shrimp

The Australian Department of Agriculture and Water Resources has loosened its temporary suspension of the import of uncooked prawns and related products from some Asian countries including Vietnam.

On February 6, the department announced that they would relax the ban on uncooked prawns imported from some Asian countries which took effect since January 9.

The ban will be lifted for dried prawns, shelf-stable prawn-based food products, irradiated bait for aquatic use, pet fish food, aquaculture feed, and uncooked prawns caught from the exclusive economic zone of Australia.

According to the department, the risk of white spot virus outbreak is low on these products.

Vietnamese exporters are estimating millions of USD in losses after Australia banned the import of uncooked prawns due to recently discovering a white spot virus outbreak in December.

The virus that causes white spots in prawns in Queensland can stop them from growing. Australian authorities are investigating whether the disease was brought in via imported products.

All cargoes that attempt to enter Australia on or after January 9 are being destroyed or returned. Cargoes that are temporarily imported to Australia will be carefully tested. The ban will take effect until the risk is reduced to acceptable level.

Two shipments from Ca Mau Province were returned recently. Each month, about 100 to 150 tonnes are exported to Australia and firms are estimating millions of USD in losses as their contracts are terminated and cargoes are returned.

The Vietnam Association of Seafood Exporters and Producers said Australia was Vietnam's potential market with high demands for shrimp. Vietnam exports about USD100m of cooked and breaded and marinated shrimp to Australia each year. The ban will heavily affect the export of breaded shrimp.

Truong Dinh Hoe, Vietnam Association of Seafood Exporters and Producers' secretary, said the sudden ban, without giving firms time to change or redirect their shipments, had caused difficulties. This would mean the breaded and marinated shrimps for Australian market could hardly be sold elsewhere. 

The association has reported to the Ministry of Agriculture and Rural Development and other agencies. It hoped that the Australian authorities will still apply the old rules on en route cargo under existing contracts.

Yamaha Vietnam keeps Hong Leong Industries on track

Yamaha Vietnam’s strong earnings outweigh Hong Leong Industries Bhd.’s weaker building materials division.

Yamaha Vietnam keeps Hong Leong Industries on track

As reported by thestar.com.my, on February 7, RHB Research maintained its buy call on Hong Leong Industries Bhd. (HLI)’s ticker with unchanged estimates and raised its target price by 14 per cent, from RYM10.60 to RM11.11 ($2.39 to $2.50). 

The research house’s decision illustrates that HLI’s performance results for the first half of 2017 remained within its earlier expectations.

The report lauded HLI’s market leading robust business model, while identifying uneven business results across various segments.

“The company churned decent earnings despite a weaker performance at its building materials division, thanks to the stronger performance from its Vietnam associate,” the research house said in a note.

In contrast with the limited success at the groves of Hong Leong Yamaha Malaysia (HLYM) – a HLI’s subsidiary, where improving unit sales and sustaining margins amounted to a small-scale victory, Yamaha Vietnam’s strong revenue and profit offset other ailing associates.

During the 2016 financial year HLYM achieved a sales volume of 430,000 units, an 11 per cent drop on-year, marking the third consecutive year of shrinking industry demand. Yamaha Vietnam, in which HLI holds a 24 per cent stake as of the end of 2016, on the other hand, outstripped the 7 per cent growth of the total domestic market and sold 16 per cent more than last year, 776,182 units.

Higher production costs disturbed the operations of HLI’s fibre cement production arm and its troubled ceramic tiles business brought down the performance of the whole building materials division.

Largely attributable to Yamaha Vietnam’s performance, associate contribution was up 21.7 per cent on-quarter and 4.3 per cent on-year (first two quarters of the 2017 fiscal year).

The report added that HLI’s net cash position and strong cash-generating ability should allow the board to pay out 55 per cent of its earnings, offering over 4.6 per cent in yield.

Vietnam is currently Yamaha’s second largest market, with sales of 800,000 units in 2016 and strong prospects for 2017, riding on the dynamic local economy.  Success in Vietnam is mirrored in the company’s decision to pick the country to debut its newest Janus scooter in August 12 and unveil the Yamaha 04Gen concept scooter in April 7, 2016.

Yamaha’s prospects in Vietnam remain rosy despite recently having to recall 110,000 Nozza Grande motorbikes for technical defects.

Heineken steps up game in Vietnamese beer market with colossal Vung Tau investment

On February 6, Heineken Vietnam Brewery Vung Tau Joint Stock Company received the investment certificate for the 12-fold expansion of its factory in My Xuan A industrial zone in the southern province of Ba Ria-Vung Tau.

Heineken steps up game in Vietnamese beer market with colossal Vung Tau investment

Heineken Vietnam Brewery Vung Tau Joint Stock Company is spending $185 million to expand the factory to have capacity of over 610 million litres of beer per year.

In July 2016, Heineken Vietnam took over a brewery from Carlsberg. At the point the factory had capacity of 50 million litres per year.

Heineken Vietnam Brewery’s portfolio of brands includes Heineken, Tiger, Tiger Crystal, Desperados, Biere Larue, Biere Larue Export, BGI and Bivina in Vietnam. According to a released figure from Euromonitor, over 80 per cent of Vietnamese market share belongs to Sabeco, Heineken and Habeco. 

In 2016 the domestic production was nearly four billion litres of beer. In terms of output, of all the beer brands in Vietnam, Heineken takes the second rank with the total amount of 1.1 litres of beer in 2016, right after Sebeco with 1.6 litres of beer produced.

Beer accounts for 94 per cent of alcoholic beverage consumption in Vietnam. According to research company on international soft drink and alcoholic beverage industries Canadean, Vietnam alcoholic beverage market has experienced a rapid growth, with the rate of 6.4 per cent per year for the past 10 years. 

Vietnamese beverage producers plan to produce about four billion litres of beer in 2017, up by 10 per cent from 2016, according to the Vietnam Beer Alcohol Beverage (VBA).

Masan Group profit reaches nearly $500 million

The Masan Group has announced its business results for 2016. They had a pre-tax profit of VND9.6 trillion ($442.2 million), of which revenue from food and beverage accounted for 40.3 per cent.

The group’s financial report showed that its revenue in 2016 stood at VND43.2 trillion ($1.9 billion), up 41.4 per cent year-on-year. Pre-tax profit stood at VND9.6 trillion ($442.2 million).  

Food and beverage (F&B) was the field that brought the largest revenue to the group with VND39.2 trillion ($1.7 billion), accounting for 40.3 per cent of revenue. Profit from F&B reached VND6.2 trillion ($272.8 million), up 30 per cent year-on-year. Revenue from mineral and other fields, meanwhile, reached VND4 trillion ($176 million).  

The merger of Saigon NutriFood and the acquisition of 25 per cent of the shares at Vissan Limited Company, one of Vietnam’s leading food enterprises, has helped Masan complete its model of Feed - Farm - Food (3F). The 3F model has contributed over 50 per cent of the revenue and profit of the group for the past few years. 

This year, the group’s target growth is 15 to 20 per cent, of which food and beverage and consumer products will continue contributing 90 per cent net revenue of the group, as it plans.

The Masan Group was founded in 1996 and is based in Ho Chi Minh City. Its key subsidiaries include Masan Consumer Holdings, Masan Nutri-Science and Masan Resources, while Techcombank is an associate company. The group was listed on the Ho Chi Minh Stock Exchange in November 2009.  

Masan Consumer, part of the Masan Group Corporation, officially listed 538.1 million shares at VND90,000 per share (US$4.06) on January 5 on the Unlisted Public Company Market (UPCoM) of the Ha Noi Stock Exchange.

The shares, traded under the code MCH, rose 9 per cent to close the trade at VND98,072 ($4.3) per share, bringing its market capitalization to more than $2.3 billion, which has made it one of the few billion-dollar companies on the UPCoM. 

TPBank will pilot 24/7 online banking

TPBank will deploy LiveBank models widely in early 2017 to change traditional banking trading.

General Director of Tien Phong Bank Nguyen Hung said that TPBank started to apply LiveBank in Hanoi and Ho Chi Minh City in late 2016. They had been preparing for this for a long time now.

TPBank’s LiveBank is a new bank model used around the world. Some countries and territories such as Germany, Japan, Turkey, and Hong Kong (China) already use it. Singapore is the only one in Southeast Asia that uses this bank model. TPBank will be the first bank in Vietnam to apply 24/7 online banking.  

“Online banks will grow strongly in the coming times,” Mr. Hung forecasts, “the concept of transactions at traditional bank branches will gradually be replaced by online transaction services and equipment will replace tellers."

LiveBank combined features of basic banks with Video Teller Machine online to support its customers.

Customers have only tried out basic transactions such as cash withdrawals and account inquiries. TPBank LiveBank serves basic needs such as transactions paid in cash, electronic banking including bank transfers, payment services, queries, term deposits registration of products and services of banks and many other services at present.  

It’s easy to use TPBank LiveBank. After choosing a transaction, an image of a teller appears and carefully guides you until the transaction is finalized. Its aim is to help customers feel as comfortable as doing a transaction at an actual counter.

Two 24/7 TPBank LiveBanks have launched at Lang Hoa Lac Industrial Park  and No.54 Bat Su Street, both located in Hanoi. There are two TPBank LiveBanks in Ho Chi Minh City. They are located at Hung Vuong Plaza (District No.5) and Hai Au Building (39 Truong Son Street, Tan Binh District).

Mr Hung also believes that in late 2017, TPBank will have  50 LiveBanks to meet demands from its customers. Moreover, TPBank will also improve the quality of its services. This is just one of TPBank’s new development strategies for the future.

Listed shares from 6 months or older to margin trading

The State Securities Committee has decided that listed shares that are 6 months or older will be eligible for margin trading.

The stocks on UPCoM not included on the list will be traded on margin.

The State Securities Committee promulgated Decision No. 87 on margin trading on January 25, 2017 to replace Decision No. 637 and Decision No. 9 on August 30,2011 on January 8, 2013 respectively.  

Decision No.87 comes into effect from April 1, 2017.

Securities will be eligible for margin trading which will include stocks, and fund certificates listed on the stock exchange must be listed with six months from the first trading day.

In September 2016, The State Securities Committee released the draft of this regulation and consulted participant opinions from September 29, 2016 to November 29, 2016.

According to the draft, stocks listed 3 months from the first trading day until the day they are approved/not approved can participate in margin trading. This is reasonable when the number of stocks listed increases in the market. However, in the new regulation, stocks, and fund certificates listed on the stock exchange must be listed longer, with six months from the first trading day, are eligible for margin.

The new regulation also named those that cannot participate in margin trading such as financial statements audited annually or semi-annually and financial statements that have been revised which is not acceptable by most audit organizations. Listed organizations that are late in announcing finance reports audited also cannot participate in margin trading. 

Semi-annual financial statements that have been reviewed more than five working days from the deadline and business results of listed organizations losses based on financial statements audited annually or semi-annually cannot take part in margin trading.

If the listed organization is a parent company, the business result will be based on the consolidated financial report. Company losses are considered accumulated losses and/or losses for the period reviewed .

CBRE Vietnam launches hotel division

CBRE Vietnam has launched a CBRE Hotels Vietnam team to serve institutional owners, investors, and developers in the hotel and leisure sector.

“We are now entering another exciting year for the hospitality market,” Mr. Robert McIntosh, Executive Director of CBRE Hotels, Asia Pacific said.  “The launch of the CBRE Hotels team in Vietnam continues to further bolster the company’s already strong position in the market. CBRE Vietnam will focus on increasing its momentum in the hotel market and continue to collaborate with our vast network of offices to offer our clients the opportunity to target key development sites within the region for the upcoming times.”

He added that this would position CBRE to deliver the best-in-class advice and execution for future growth in the Vietnam hotel market, as well as expand their reach to better serve the company’s clients.

The CBRE Hotels team in Vietnam will be led by Khoa Nguyen, Associate Director, who will work closely with Mr. McIntosh. Khoa has more than 10 years’ working experience with international leading financial consulting service providers that mainly focused on valuation and advisory services for hospitality, real estate, business/equity, and intangible assets. Khoa also has direct working experience in the Southeast Asia region, including Vietnam, Thailand, Singapore, Cambodia, Laos, and Myanmar.

The team is dedicated exclusively to being the hospitality industry’s premier provider of market research, consulting, valuation, and capital markets services to meet the increasing demand of hotel investors, developers, financiers, and other customers.

Vietnam’s hospitality sector expects to enjoy dynamic activities resulting from increasing international attention and a variety of natural sites still awaiting development. All this will help further tourism incentives from the local government especially in terms of stricter safety regulations, better service quality, and relaxing visa policies.

Due to the recent wave of hospitality growth in Vietnam, CBRE has received strong interest from developers, investors, and institutional groups to provide solutions for their hospitality businesses. The CBRE Hotels team in Vietnam was formed not just to meet this growing demand, but also to target the expected influx of investors and to develop hospitality sites after the government’s new visa waiver and e-visa grant policies.

Mr. Marc Townsend, Managing Director of CBRE Vietnam, said: “The Vietnam hospitality market still has potential to develop. Appointing Khoa to lead the hotels division in Vietnam is a great endorsement of our business, and we are confident his energetic approach and outstanding skillset will ensure the team’s growth in 2017 and beyond.”

The CBRE Hotels team has over 370 hospitality specialists globally with more than 50 in Asia Pacific region. As part of CBRE Hotels worldwide, CBRE Hotels Vietnam team is a mixture of transactional and consultancy specialists with in-depth understanding, comprehensive knowledge and a network and range of client contacts unparalleled in the industry.

Budget revenues hit VND97.4 trillion in January 2017

Vietnam’s budget revenues reached approximately VND97.4 trillion (US$4.28 billion) in the first month of 2017, equivalent to 8% of the year’s estimate and 103.9% compared to the same period last year, according to the Finance Ministry.

Of the total figure, domestic revenues were estimated at VND87.9 trillion (US$3.86 billion), equal to 8.9% of the year’s estimate and up 4% year on year.

Revenues from crude oil were estimated to reach VND2.3 trillion (US$101.2 million), equivalent to 6% of the estimate, down 25% over January 2016.

Total revenues from import and export activities were estimated at VND19.2 trillion (US$844.8 million), equal to 6.7% of the estimate. After VAT refunds according to regulations (VND12 trillion), budget balance revenues from import and export reached VND7.2 trillion (US$316.8 million), representing a year-on-year increase of 15.8%.

Total budget balance expenditures in January 2017 hit roughly VND87.25 trillion (US$3.84 billion), equal to 6.3% of the year’s estimate, of which expenditures for ensuring the spending demands for socio-economic development, national defence and security, state management, alleviation of the consequences of natural disasters and social security accounted for 86.2% of the total expenditures, while expenditures for paying due interests represented 10.9%.

In order to create favourable conditions for agencies to implement tasks right from the beginning of the year, the Finance Ministry proactively allocated provisional funding for the units waiting for budget allocation. The ministry also paid pensions and allowances for February 2017 in advance aiming to enable revolutionary contributors and pension and allowance beneficiaries to enjoy a happy Lunar New Year (Tet).

In addition, 13,000 tonnes of rice from the national reserves were also distributed to people in disadvantaged areas.

MOIT approves VND93 billion for 2017 National Trade Promotion Programme

The Ministry of Industry and Trade (MOIT) has approved 199 projects for the 2017 National Trade Promotion Programme with a total cost of VND93 billion (roughly US$4.1 million).

Under the programme, practical and feasible trade promotion activities will be implemented from the beginning of the year, aiming to expand export items and markets with a focus on Vietnam’s free trade agreement (FTA) markets, including Japan, the Republic of Korea (ROK), the United States, and markets of the Vietnam-EU FTA, the ASEAN Economic Community, the Eurasian Economic Union and the China-ASEAN FTA.

Together with the acceleration of exports and the reduction of trade deficit, the programme will continue implementing trade promotion activities to develop the domestic market; rural, mountainous and border areas; and disadvantaged localities, contributing to effectively implementing the Politburo-launched campaign “Vietnamese people prioritise Vietnamese goods”.

Earlier in 2016, the MOIT approved VND90 billion for the national trade promotion programme which included 177 projects proposed by 67 companies.

With the support of the programme, the presence of Vietnam’s export items in traditional markets such as the US, the EU, China, Japan and the ROK was increasingly expanded last year.

HCM City cranks up fight against tax evasion     

HCM City wants tax and customs agencies to strengthen the fight against tax evasion, smuggling and trade fraud.

Speaking at a meeting on Monday on the city’s revenues in January, Tran Vinh Tuyen, deputy chairman of the People’s Committee, also called on the two agencies and the financial sector to provide more support to household businesses and create favourable conditions for them to turn into companies.

Tran Ngoc Tam, head of the city taxation department, said as of February 6 taxes and fees of VND34.26 trillion (US$1.5 billion) had been collected, an increase of 13.3 per cent year-on-year and 9.8 per cent of the full year’s target.

Revenues from domestic sources – as opposed to tariffs on foreign trade -- topped VND25.8 trillion ($1.14 billion), a year-on-year increase of 13.29 per cent. Corporate income tax contributed VND8 trillion, an increase of VND1 trillion.

Tuyen said domestic revenues are important and represent the health of businesses and the economy since it is the result of production and trading activities.

Relevant authorities must therefore focus on supporting businesses and making life easier for them, enabling them to contribute to the city’s coffers, he said.

Tax agencies need to co-operate with the city Department of Planning and Investment to help large household businesses make tax declarations, register labour and others to enable them to grow into companies, he said.

He ordered tax authorities not to carry out inspections of enterprises during the peak year-end season.

Nguyen Huu Nghiep, deputy head of the city customs department, said VND7.46 trillion worth of import and export tariffs had been collected by February 6, an increase of nearly 3 per cent.

This year customs would focus on supporting importers and cracking down on trade fraud and smuggling.

“Customs will this year co-operate with enterprises to exchange information about trade fraud while striving to create the best conditions for businesses.”

With the city getting tough on price-related fraud and stepping up inspections, many businesses have begun to import goods through ports in neighbouring provinces, he said.

Therefore, all localities should join hands in fighting trade-related frauds, he said.

The city People’s Council has passed a resolution on a fiscal plan for this year.

The city targets tax and fee collections of VND347.88 trillion this year, up 15.8 per cent from last year.

Of them, domestic revenues will account for nearly VND226.48 trillion, import-export tariffs for VND109 trillion and crude oil sales for VND12.4 trillion. 

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