Business confidence up in Q1
Vietnam’s business confidence index (BCI) in the first quarter of the year increased by 31 points against the final quarter of last year, showing business optimism for the country’s economic growth in 2013.
According to a survey conducted by WVB Vietnam from late March to mid-April, most of the 129 participating enterprises agreed that Vietnam’s economy is in a better state than 12 months ago.
Seventy-one percent of the surveyed enterprises believe the country’s economy will do even better in the next 12 months, while only 9 percent said they are worried about the future of the economy. As a result, 60 percent of the enterprises believe their revenue and profits will be higher than in the previous quarter.
Government Resolution No. 13 on measures to ease difficulties in business and production, and Decree No. 08/2013/ND-CP on administrative sanctions for the production and trade of counterfeit goods were attributable to the improved confidence among enterprises, according to WVB.
WVB reported that most of the businesses said they believed in the Government’s commitment to curb inflation and that banks will provide more support for enterprises in 2013.
Garment export to new markets sees strong growth
Vietnam’s garment and textile export saw strong growth in several new markets in the first quarter of this year, with the rate as high as 134 percent in Norway and 120 percent in New Zealand, according to statistics from the General Customs Department.
Garment export to Cambodia also increased by 103 percent in the period, hitting 45.7 million USD.
The ASEAN as a whole also bought more garment and textile products from Vietnam, generating a total turnover of 111.4 million USD, up 44.4 percent.
Vietnam earned 3.7 billion USD from the export of garment and textile in the January-March period, up 18.3 percent.-
Treasury mobilises more money from Gov’t bonds
The State Treasury mobilised 6.45 trillion VND worth of Government bonds through a tender organised by the Hanoi Stock Exchange (HNX) on April 25.
The HNX put forward Government bonds worth 7 trillion VND in total for tender on the day.
The mobilised money included 2 trillion VND in two-year bonds with an annual interest rate of 7.37 percent, 2 trillion VND in three-year bonds with an annual interest rate of 7.68 percent, 1.65 trillion VND in five-year bonds with an annual interest rate of 8.45 percent, and 800 billion USD in 10-year bonds with an interest rate of 9.1 percent.
The State Treasury has so far this year mobilised over 67.9 trillion VND worth of Government bonds via tenders, including over 15 trillion VND in April alone.
HCM City export rises in first four months
Ho Chi Minh City recorded a high export growth in the first four months of the year, it was reported at a meeting of the Municipal People’s Committee on April 24.
The city’s export value reached 9.2 billion USD, a year-on-year increase of 15.6 percent, the Department of Industry and Trade said.
Another good sign was that export growth was higher than imports, which rose to 8.04 billion USD, a year-on-year increase of 19.5 percent. Imports comprised mostly raw materials, equipment and facilities.
Huynh Khanh Hiep, Deputy Director of the Department of Industry and Trade said this sign shows that the production situation of enterprises has improved.
In the first four months, revenue growth was seen in the agriculture, forestry, fisheries, industry and transport sectors.
Total retail sales and service as well as tourism revenue also rose compared to the same period last years, while industrial production increased by 4 percent.
For April, the city’s inventory index is estimated to go up by 7.3 percent, falling by 2.8 percent against last month.
For the first four months of the year, the city’s CPI increased by 2.44 percent against last month.
During the first four month a total of 97,700 jobs were created, meeting 36.9 percent of city’s target.
At the meeting, the People’s Committee established eight task groups that will oversee measures to support companies’ sales and help them increase production next month.
Nguyen Phuoc Trung, Deputy Director of the city’s Department of Agriculture and Rural Development, said the city continued taking steps to prevent outbreaks of bird flu.-
Bank dismisses subdued start to year
Vietnam will experience a moderate economic recovery this year, Standard Chartered Bank has said in a report released on April 22.
The forecast dismissed the subdued start to 2013, with GDP growing 4.9 percent year-on-year in the first quarter, down from 5.5 percent growth in the previous quarter.
The weak GDP growth number was consistent with data released earlier, which indicated sluggish credit growth, retail sales, visitor arrivals, and industrial production.
The report said the economy normally pick up after Q1, when business activity is distorted by the Lunar New Year festival.
Retail sales grew 11.7 percent in Q1, the slowest pace since 2005. Last year it had grown at 21 percent.
On a more positive note, vehicle sales has shown tentative signs of improving, which could indicate a rebound in retails sales in the next few quarters.
Manufacturing growth was also sluggish in Q1, averaging 5.5 percent. But it rebounded to 5.6 percent in March after contracting 10.1 percent in February.
Industrial production was likely to pick up this year thanks to a supportive policy environment and an investment recovery.
In the external sector, trade performance was volatile in Q1 but there was a surplus of 328 million USD.
Export grew 21 percent during the period. The pace of export growth, though slightly lower than a year earlier, was much higher than that of Vietnam ’s ASEAN peers.
Import growth surged to 21 percent in Q1 from 15 percent in the previous quarter, indicating improving local demand.
The trade sector would maintain its positive momentum in 2013 given recovering global demand and a moderate pick-up in the domestic market. This should also strengthen the country’s external position.
Inflation eased in March to 6.6 percent from 7 percent in February. Core inflation slowed to 11.3 percent form 12.2 percent.
But food prices could be a potential upsides risk to inflation given the large weighting for food in the CPI basket (39.93 percent).-
Binh Dinh scrutinised for land use violations
Binh Dinh province is fighting off allegations of land usage and management violations.
The Government Inspectorate last week trumpeted a report on the inspection of Binh Dinh’s natural mineral, land usage and management issues during 2004-2011. According to the report, locally-owned enterprises in the province are required to pay nearly $17.6 million in land rental and royalty taxes avoided during this period.
In detail, An Phu Energy and Natural Mineral must pay an eye-watering $5.4 million and more than $1 million from many enterprises based in the province’s Phu Tai and Long My industrial parks.
In addition, the province’s Tuy Phuoc People’s Committee has also been required to return a miscollected $21,346 to three companies based in the district.
The provincial Tax Agency and districts’ people’s committees must also collect outstanding debts worth total $10.12 million as land rental from many enterprises.
According to the Government Office, Binh Dinh’s authorities were also found to have allowed serious violations under the laws of Land, Natural Minerals, and Forest Protection and Development in giving land and mineral mines by failing to tender offers for land use, and investors failed to fulfill financial obligations to the state.
Notably, the people’s committee has not had titanium zoning, while illegally allowing investors to rampantly exploit and process titanium in areas home to coastal protection forests. After investors’ natural mineral exploitation and processing projects came into operation, local authorities failed to examine and manage them. This caused social disorder and affected Vietnam’s investment climate, said the Government Office’s vice head Le Tien Hao.
Deputy Prime Minister Nguyen Xuan Phuc ordered Binh Dinh’s authorities to address their shortcomings in failing to collect land rental and royalty taxes and miscollecting cash from enterprises. He also ordered the authorities to ring fence areas from natural mineral exploitation and processing. A report on these issues must be submitted to the prime minister in this year’s second quarter.
In addition to the Binh Dinh scandal, the Government Office reported that in this year’s first half, it found land rental violations worth $18.3 million in southern Vinh Long province. A detailed report on these violations has yet to be announced.
Also, this year’s first three months witnessed ministries, sectors and localities conduct 1,475 inspections of which 713 have had conclusions. Some $22.35 million and 3.9 hectares were misused.
This year’s first three months also saw specialised inspectors conduct over 14,600 inspections over nearly 71,300 organisations and individuals. Of which 40,940 organisations and individuals were violators, with a fine totaled $48 million. Another $48 million has also been withdrawn from violators.
Standard Chartered Bank launched Online Personal Loan
As continuous efforts to offer the most convenience for customers, Standard Chartered Bank launched Online Personal Loan effective from April 10.
Accordingly, the product allows customers apply for personal loan online with 24 hours service guaranteed with preferential loan interest rate compared to normal apply.
Especially, during period from April 10 to 31 May, customer will get 6 per cent cash-back from loan interest rate within the first three months after disbursement. The cash-back amount will be paid to customers’ repayment account on 10 of the next three months after the first equated monthly installment is paid.
“Internet has significantly transformed the way customers and banks interact and process transactions. We are in a stage of constant innovation to bring the most convenient and secure online methods to our customers,” said Amit Arora, head of Consumer Banking of Standard Chartered Bank (Vietnam) Ltd. “The launch of Online Personal Loan and upcoming online products are clearly proving of our brand promise to be “Here for good” in our daily business practice. Vietnam is a high internet penetration country and we will continue to delight our customers by offering them more options to use online.”
Standard Chartered Bank (Vietnam) now has three branches and employs nearly 700 staff. The bank provides a full suite of Wholesale Banking products and services to corporates and financial institutions. It also has Consumer Banking to serve individuals and small and medium enterprises.
Quang Nam opens remote Laos border gate
The Tay Giang-Ka Lum border gate was officially inaugurated yesterday, connecting Tay Giang district in the central Quang Nam province and Ka Lum district of Sekong Province in Laos.
The small gate between the two mountainous districts will help boost the social-economic development for local people of both countries.
“The border gate opening will also improve the cultural exchange of both peoples and increase bilateral trade in the coming time,” chairman of Quang Nam People’s committee Le Phuoc Thanh said.
The mountainous district of Tay Giang, 190km west of Tam Ky City in the central province of Quang Nam, was only approachable by four-wheel-drive vehicles two decades ago but the district has managed to complete a 18km asphalt road of total section 60km from the district centre to the border gate.
The district, with 14,000 population, of which 95 per cent are of the Co Tu ethnic group, is increasingly becoming known as a prime destination for motorbike adventure tours.
Dolphin Plaza wins first prize at National Architecture Awards
The Dolphin Plaza building in Tu Liem, a district in the outskirts of Ha Noi, won first prize in the 2012 Viet Nam National Architecture Awards – marking the first victory by a luxury apartment complex.
Designed by architect Tan Jiann Woei, the 28-storey condominium complex won praise from the jury for its modern design and eco-friendly orientation.
The organising board presented second prizes to five “outstanding” architectural works and design projects: a book by Pham Duc Nguyen on the development of sustainable and green architecture in Viet Nam, Vincom Village in Ha Noi (architect Nguyen Anh Vinh), Can Tho City’s ferry station, the Dai Lai Conference Centre in Vinh Phuc (architect Vo Trong Nghia) and the Dac Lac Museum (architect Tien Thuan).
The organising board also presented 17 third prizes and 15 consolation prizes as well as two certificates of merit.
The awards will be presented today during a ceremony in Ha Noi to mark the 65th anniversary of the Viet Nam Architects’ Association (VAA).
The biennial awards were jointly held by the VAA, the Ministry of Construction and the Ministry of Culture, Sports and Tourism.
As many as 15 publications, 24 urban planning and design projects and 101 architectural works competed this year.
Securities arm provisions cost Sacombank
Sacombank’s (STB) profit last year declined due to large provisions, mainly for its subsidiary Sacombank Securities (SBS), the bank said yesterday during its shareholder meeting.
Last year’s net profit reached VND987.4 billion (US$47 million), around 52 per cent less than in 2011.
Sacombank announced that SBS owed over VND2 trillion ($95.2 million) to the bank as of last June.
This was because the bank bought SBS’s convertible bonds, which had not been approved by the central bank. At the same time, Sacombank also violated the regulation prohibiting banks from lending to securities companies under their control.
Sacombank’s losses totaled VND821 billion ($39 million), according to the central bank.
Last year, Sacombank made provisions for SBS of more than VND1 trillion ($47.6 million). It managed to recover VND300 billion ($14.2 million) in convertible bonds and VND104 billion ($4.9million) in share interest.
This year, the bank may have to add VND122 billion ($5.8 million) to provisions for SBS.
SBS shares were delisted on March 23, as losses were higher than charter capital. The brokerage will either restructure or face dissolution.
Sacombank said it would not determine whether SBS merged with another brokerage, as Sacombank owned only a small percentage of the securities firm.
The bank said it expected to make about VND3.2 trillion in profits this year, more than double last year’s level. During the first quarter, it earned a gross profit of VND50 billion.
It also aims to increase charter capital by 53 per cent to VND16.4 trillion this year.
More businesses halt production in Ha Noi
Nearly 3,000 businesses in the capital city have halted production so far this year, including 108 businesses that changed their field of business, according to the Ha Noi Taxation Department.
The closures were attributed to the slow global economic recovery, rapidly increasing bad debt, large volume of inventories and high lending interest rate.
Deputy director of the Ha Noi Taxation Department Thai Dung Tien said that in the first quarter this year, tax declarations and payment from businesses were much lower than in the same period last year.
By April, the city’s total revenue is estimated to reach more than VND40.2 trillion ($1.915 billion)–83.3 per cent of what it was last year.
Next month, the city tax department will review first quarter tax collection.
Supermarkets, malls offer holiday promotions
Supermarkets and shopping malls in HCM City have launched major promotions for the Liberation Day (April 30) and May Day holiday to attract buyers at the current economic difficult time.
The Co.op Mart supermarket chain has cut prices on more than 4,000 items, mainly essential everyday ones, up to 49 per cent until May 3.
In addition, the chain has prepared an abundant supply source of fresh food at reasonable prices to serve customers during the holidays.
Big C supermarkets are running two promotions, Cooking with Master Chef on food items and Active Summer for clothes and cosmetics, with discounted prices of five to 50 per cent on about 2,000 products until May 13.
Other city supermarkets such as LotteMart, Citymart and Maximark have also launched promotions to stimulus demand amid the economic downturn.
Management of gold market in line with law, says State Bank
The State Bank of Viet Nam has said its management of the gold market has been compliant with existing laws and regulations.
The comment was made in a press release on Wednesday in response to incorrect information in an article published on Wednesday by Thanh Nien (Young People) newspaper.
The article reported that the World Gold Council estimates that 25.5 tonnes of gold was illegally imported into Viet Nam during the 2011-12 period. The SBV says the World Gold Council had not made such an estimate, and the newspaper had incorrectly reported the figure, which was in fact for estimated demand for gold and jewelry during the period.
The incorrect figure in the newspaper was due to translation errors, which distorted the Government’s policies on gold market management, the SBV said.
Regarding the policy of temporary gold exports for re-import, the central bank said that the process was under close supervision. In addition, gold bars at recent auctions – a measure to intervene in the gold market in accordance with Government resolutions – came from the State Foreign Exchange Reserve and had no relevance to the temporarily-exported gold.
The article’s interpretation that the policy of temporarily exporting gold for re-import aimed to legalise illegally-imported gold was incorrect. Reports that the gold bars for auctions came from the stocks of temporarily-exported and re-imported gold were also completely wrong and groundless, said the SBV in the press release.
Gurus paint gloomy growth picture
While last year’s GDP of 5 per cent was the lowest in the last ten years, economists have predicted a gloomier economic growth for this year due to challenges facing the local economy.
The economists agreed at a workshop this week in Ha Noi, organised by the Institute of Finance and Economics, that the main challenges were bad debts, high inventories and a moribund real estate market.
Economist Ngo Tri Long said growth potential was at risk while low production and productivity and technological backwardness were holding the economy back.
Some participants thought bad debts could be even worse than the State Bank’s warning. Duong Hoang Lan Chi from the Institute of Strategic and Financial Policy said bad debts influenced capital flows as well as the safety and efficiency of the local banking system.
Meanwhile, high product inventory was adding to the challenges. Vu Vinh Phu, chairman of the Ha Noi Supermarket Association, said inventories left many supermarkets facing long-term difficulties.
Data showed the highest inventories were in motor vehicles, furniture and chemical production and food processing.
Importantly, the difficulties had caused a market confidence crisis with consumers not willing to buy and investors refusing to chance their arm. Long said “Market confidence was seriously impaired, especially in the real estate market” and suggested it was necessary to rebuild trust in the market to achieve sustainable recovery in the economy.
Banking also had weaknesses. Doctor Nguyen Thi Hien said that the State Bank should pay more attention to ineffective banks than to controlling the gold market, mentioning that the gold market became more out of control when the State bank interfered.
Phu, the supermarket association chairman, said he appreciated the Government’s policies to help enterprises but there was some unfairness in loan distribution for enterprises working in the supermarket industry. Some private supermarkets had asked for several years for loans to expand their businesses while others got a loan within a month. He suggested reducing value added tax for some essential commodities as it would be an encouragement for consumers.
Budweiser to enter Vietnamese market
Anheuser-Busch InBev, the world’s largest beer maker with famous beer brand name Budweiser, plans to build a brewery in Vietnam next year to tap the large and fast-growing Asia market.
Vietnam, with a population of about 90 million, is considered one of the most attractive markets in the region for brewers, with estimated beer sales growing by 10 percent annually from 2010 to 2020.
Anheuser-Busch InBev Chief Executive Carlos Brito says his firm has already got the land license for the project.
Anheuser-Busch InBev is currently the world’s No1 beer maker, holding 25 percent of the global market share.
According to Euromonitor International’s recent survey, Vietnam ranked first in Southeast Asia for beer drinking, with nearly 2.6 billion litres of beer consumed in 2011.
Last year, Japanese beer company, Kirin Holdings, also reported that Vietnam was among the top 25 beer consumers in the world, seeing an increase of 15 percent.
The world’s leading beer brand names like Rivals Carlsberg, Heineken and SABMiller have entered Vietnam, either directly or through joint ventures.
Industry production index up 5.8 percent in April
Industrial production index in April increased by 5.8 percent over the same period last year, contributing to a year on year increase of five percent in the first four months of this year, the General Statistics Office (GSO) reported.
Accordingly, in April the mining industry saw a rise of one percent; manufacturing and processing industry – 6.9 percent; electric production and distribution – 9.2 percent; and water supply, waste and waste water treatment – 9.7 percent.
The industrial production index of Ho Chi Minh City recorded a 3.9 percent rise in April compared to one year ago while Hanoi ’s increased by 4.7 percent. The northern province of Vinh Phuc’s index was up 15.1 percent and central Da Nang city saw a 10.7 percent increase.
However, the inventory index of the processing and manufacturing industry by April 1 saw a 13.1 percent year on year rise. The index is particularly high in beverage production, motor vehicle manufacturing, furniture, chemicals, electrical equipment and pharmaceutical production.
Lam Dong has first farm producing weasel coffee
The first farm producing the famed weasel coffee in the Central Highlands province of Lam Dong has opened its door for visitors to see the entire process of making the coffee with the help of domesticated animals.
The two-hectare farm at 135E Hoang Hoa Tham Street, Da Lat city, is keeping as many as 120 weasels (a type of civet) with the permission of the local forest management agency, and can produce an average of 500 kilograms of weasel coffee every year.
According to the farm’s owner Nguyen Minh Quoc, every coffee crop, the civets are fed with highest quality Arabica coffee berries. The coffee beans which are relatively undigested and intact in their droppings were then collected, cleaned and processed for sale.
Experts say the enzymes inside weasels’ stomach give the undigested coffee beans delightful taste and distinctive aroma.
Quoc said, the coffee has been checked and recognised by the Pasteur Institute of Da Lat and the Nuclear Research Institute for good quality and hygiene.
The publicizing of weasel coffee production process at the farm contributes to popularising the quality and trademark of Vietnamese coffee, as well as creating a new sight-seeing spot for tourists in Da Lat city.
Fertiliser exports to Cambodia pick up
The Binh Dien Fetiliser Joint Stock Company exported 100,000 tonnes of fertiliser to Cambodia in 2012, earning around US$60 million.
Le Quoc Phong, the company’s CEO, said successful operations in Cambodia will help the company penetrate Laos and Myanmar in the near future.
Cambodia’s YETAK group signed a cooperation agreement with Binh Dien in 2003 to import fertilisers from the Vietnamese company, and its imports have since increased 20 percent annually.
YETAK General Director Huk Chuon said Binh Dien fertilisers are now popular with Cambodian farmers, besides products imported from Thailand and the Philippines.
Quality products, reasonable prices and technical assistance are primary factors in winning local farmers’ trust, Chuon said, sharing the experience in penetrating the Cambodian market.
Over the past 10 years, Binh Dien scientists and technicians have provided significant assistance to Cambodian farmers. In 2012 alone, Binh Dien organised training courses for more than 120 YETAK’s agents.
At a recent working session with Binh Dien’s management board, Minister of Agriculture, Forestry and Fisheries Chan Sarun praised the company’s contribution to developing the Cambodian agriculture and raising farmer incomes.
Vietnam exports to US reach US$4.8 billion in Q1
Vietnam earned US$4.8 billion from its exports to the United States in the January-March period, up 16.74% over the same quarter in 2012, according to the Vietnam Industry and Trade Information Centre.
Rising exports to the world’s largest economy were primarily boosted by the exponential growth in exported gemstones and precious metals (up 246.76%), rice (up 187.5%), pepper (up 180.41%), chemicals (134.83%) and crude oil (up 105.17%).
However, a number of other commodities saw a decline in value during the same period.
Year on year, seafood fell 6.69%, coffee dropped 15.6% and cashews fell by 1.08%.
In the first quarter, imports from the United States were estimated at US$1.3 billion. Vietnam’s major imports from the country include animal feed, machinery and electronic devices.
Last year, two-way trade between Vietnam and the United States reached a total of US$24.2 billion.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR