VietNam Business: businesses

Showing posts with label businesses. Show all posts

Friday, February 18, 2011

Swiss businesses eye Hanoi market

A delegation of 22 Swiss businesses headed by Baumgartner from Credit
Suisse AG, one of the world’s leading banking and financial service
providers, met with the Hanoi People’s Committee on October 18 with the
aim to seek out investment opportunities in the capital city.

The businesses mainly operate in finance, banking, import-export,
investment management, tourism, industrial production and real estate.

Nguyen Huy Tuong, Vice Chairman of the Hanoi
People’s Committee, briefed the guests on the city’s potentials and
strengths after it was expanded in 2008, saying the city’s investment
policies have reaped positive outcomes.

According to
the municipal leader, Hanoi encourages investors in banking,
finance, tourism, clean technology and brain-intensive industries.

The aforementioned areas are of Switzerland ’s strengths, he said,
stressing that Hanoi will create favourable conditions for Swiss
business to invest in the city.

During the meeting,
the Swiss businesses said they are impressed by the rapid development of
Hanoi and the capital’s 1,000 year-old culture.

Baumgartner said through the gathering, the Swiss businesses get
useful information regarding investment and other areas of their
interest./.

Sunday, February 13, 2011

Let businesses take the lead

Let businesses take the lead The government’s policy to prioritize certain industries and encourage businesses to invest in them should be abandoned, experts say.

They say that businesses should decide what they want to do based on their reading of the market, and the government should support them by creating favorable conditions for business development.

Nguyen Xuan Thanh, a lecturer with the Fulbright Economics Teaching Program, told the Thoi Bao Kinh Te Saigon magazine that the experience of other countries showed choosing a certain industry or industries and giving them priority treatment had failed, most of the time.

“With the development of technologies and the global restructuring of labor forces proceeding at a fast pace, such a policy is no longer suitable,” Thanh said.

Vietnam has focused on several industries based on “the government’s orientation,” he said, but this has not paid off.

The automobile and electronics industries, which have been priorities for many years, have made little progress with most companies still engaged in assembly work, he said. Other sectors like sericulture and shipbuilding had actually regressed despite being given very favorable conditions.

On the contrary, some sectors have grown well even though the government did not set any clear orientation for their development. The tra fish sector, for instance, was driven by farmers as they saw the export potential of the fish, which used to be underrated earlier because of their low value, Thanh said.

“It’s the farmers who decided to raise the fish, not because the government told them to do so,” he said.

Huynh The Du, also from the Fulbright Economics Teaching Program, said the growth of a certain sector of the economy is mainly determined by businesses.

For example, Ho Chi Minh City has a strong financial and banking sector because it is home to many banks and financial companies. “It’s all about costs and benefits. Businesses have flocked to the city not due to any policy but simply because they can find favorable conditions for their business and a better chance to earn profits.”

“Businesses have the best understanding of the market, but sometimes they make mistakes,” Thanh said. “So how come government officials who do not have firsthand business experience decide (what is good) for businesses?”

The success of the tra fish sector was possible because the government gave it the right kind of support – by facilitating research of new breeds and scouting export markets, Thanh said. “That’s the role of the government: to create favorable conditions. Once the business environment has been improved, if an industry fails to grow, it means it doesn’t have the potential.”

Economist Tran Du Lich said infrastructure is one of the bottlenecks that the government needs to remove to help businesses, along with improving the quality of human resources.

Taking logistics as an example, it would be difficult for the industry to grow if the road system to seaports is not improved, said Lich, who is also a National Assembly representative.

Thanh said the government should also review the policies that can have negative impacts on doing business.

For instance, the financial sector in HCMC can be affected by a regulation that bans high-rise buildings in the city center, he said.

The nature of financial services is that they concentrate on a small area, which can be seen in all financial centers like Singapore, Shanghai, Hong Kong and Tokyo. A ban on high buildings will increase rentals in the city downtown, discouraging investors, he said.

Saturday, February 12, 2011

Private firms take lead in efficiency, but profits slump

Photo: Tuoi Tre

Though Vietnamese private firms take lead in investment efficiency, their profits are still much lower than those of state owned and foreign-invested enterprises, said a recent report.

While private businesses take the lead in terms of investment efficiency, their ratio of profit on total assets is still lower than that of SOEs and FIEs, according to the report on private economic sector development released by the Taskforce on the implementation of Enterprise Law and the UNDP on Wednesday.

The ratio of profit on total assets of private businesses is 1.5 percent, while the figures are 5.4 and 10.6 percent for SOEs and FIEs respectively.

To date, 500,000 enterprises have been established in Vietnam. If comparing the investment capital and the GDP of private businesses, SOEs and FIEs, one can see that the private sector has the highest investment efficiency.

In 2001, the ICOR index (Incremental Capital Output Ratio) of the private sector was 2.63, while the figure was 7.42 for SOEs and 6.29 for FIEs. The ICOR of the private sector was still the lowest in 2007: private businesses only needed VND3.74 to make a VND1 of profit, while SOEs needed VND8.28, and FIEs VND4.99.

Besides, the expenses private businesses have to pay to create jobs are also the lowest. In 2008, SOEs needed VND436.5 million worth of stockholder equity to create a job, while private businesses only needed VND224.1 million.

In 2009, the private economic sector provided jobs to 85 percent of laborers, while SOEs and FIEs 11.5 percent and 3.4 percent, respectively, of the total 47.7 million laborers.

The ratio of total turnover on total assets of the private sector is also higher than other economic sectors. In 2008, private businesses could create VND1.8 billion in turnover from VND1 billion. Meanwhile, with the same sum of money, SOEs created VND0.8 billion, and FIEs VND0.89 billion.

Le Duy Binh, Representative of the Taskforce on the implementation of the Enterprise Law, said that a lot of private businesses have reported loss.

Private businesses have to bear high expenses, therefore their profit is low. Private businesses, for example, have to pay high for leasing workshop premises, while SOEs and FIEs can lease land at lower fees, Binh added.

Besides, private businesses usually find it difficult to access bank loans because they do not have assets to mortgage for loans.

Thursday, February 10, 2011

Credit-Thirsty SMEs Seeking Ways To Survive

Customers seek consulting for their borrowing at Prudential Finance in HCM City

Small- and medium-sized enterprises (SMEs) are regarded as the backbone of the economy, accounting for 97% of the 470,000 registered businesses. Over the years, they have played an increasingly significant role in the economy, contributing to the GDP and generating employment.

Vietnam’s SMEs are presently very much in need of capital to expand their operations and profits. However, they are facing tremendous difficulties in gaining sufficient access to finance, the most important obstacle to their growth.

Vu Cong Hoa, head of Phuong Nam Packaging and Mechanical Engineering Cooperative in HCM City, is struggling to find funds to continue the project that is two-thirds complete. His business, which is conducting a study on creating a waste processing line to turn garbage into organic fertilizers, has not generated any revenue since the beginning of the year. Up to now, 70% of the work done has resulted in various types of machinery lying in heaps in the cooperative’s warehouse.

Unable to raise sufficient capital from cooperative members as well as failing to obtain bank loans, Hoa has resorted to every credit fund but to no avail. He has yet to know how to overcome the capital shortage in the future.
Hoa’s dilemma is typical for many local SMEs which are thirsty for investment capital and have no idea how to quench their thirst. Inadequate access to finance remains a great concern for SMEs despite numerous Government moves and banks’ efforts. On the one hand, SMEs can articulately present to banks all their difficulties in terms of capital, technology renovation, facility construction and investment. On the other hand, banks frequently face problems in evaluating loan applications from enterprises.

Indeed, experts have pointed out two major issues among others that are borrowers’ financial statement and collateral. Financial reports of businesses are deemed to be unreliable and lack transparency. Some businesses may maintain two to three different accounting records on their operation: A financial report which often declares loss aiming at evading tax; another for internal use that would not be revealed to outsiders; and maybe a third one for shareholders’ review.

Applications for bank loans with a financial statement declaring loss would surely be rejected. Banks would set aside money for credit-worthy SMEs, those with accurate reports, feasible business plans and high possibility for solvency.

Even when banks neglect the misleading financial statement and switch to scrutinizing project feasibility, many businesses still cannot meet this requirement. In many cases, enterprises try to seek short-term loans to finance long-term assets like machinery, equipment and facility construction. Besides, collateral and financial capacity are other hurdles that block businesses from access to bank loans.

Where to turn to for funding

Experts said SMEs can seek loans from credit sources offering long-term loans, finance sources formed under joint ventures, finance leasing companies and credit funds. They can also approach foreign financial institutions that promote projects related to climate change or clean production with minimal impact on the environment. To ensure success, applicants should fully understand the institution’s evaluating criteria. Generally, lenders want a coherent financial statement that has been audited and a profitable business plan.

The first capital source for enterprises came from Government policy. According to Tran Buu Long, vice director of the HCM City Credit Fund, credit policy for SMEs has been implemented through various municipal programs. The large scale program provides the investment stimulus package while smaller programs cover a series of funds for various purposes. There are a fund that revolves the money to facilitate cleaner and greener production for businesses, fund to mitigate environmental pollution, fund to support science and technology development, and fund to assist businesses in building warehouses and transportation infrastructure.

The city’s Science and Technology Development Fund has an initial capital of VND50 billion with non-mortgage interest rate ranging from 0%. Its maximum level is half of that of commercial banks. The fund can provide non-refundable loans for certain projects. Its capital is expected to reach VND200-300 billion by year-end.

The HCM City Finance Investment Company that holds many capital sources of the city is also a potential lender for businesses.

The city’s Credit Guarantee Fund has provided guarantees for businesses to borrow a total of VND400 billion up to now. However, banks have turned down many applicants who have been guaranteed by the fund. Currently, the fund’s balance of about VND277 billion is too modest for the demand of over 200,000 businesses in the city.
Commercial banks are probably best positioned to improve SMEs’ access to finance. Many banks are carrying out promotion programs targeting SMEs considered to be their potential customers. ACB has some projects to aid SMEs; some in collaboration with the Japan Bank for International Cooperation while others linking with projects in the European Union.

Another example is the partnership between the International Finance Corporation and Techcombank in a program worth US$125 million that focuses on supporting local SMEs in renovating technological equipment and saving energy.

SMEs’ journey to seek capital seems to be full of hardships. Yet amid those difficulties, the authority of Long Hau Industrial Park in Can Giuoc District, Long An Province has managed to find a practical solution. Well aware of businesses’ financial woes, the authority of Long Hau has borrowed capital and lent it to businesses operating in their park.

Long Hau Industrial Park has built facilities and workshops for lease or sale to businesses and allow them to pay by monthly installments over a duration as long as 10 years. The park also helps businesses obtain long-term bank loans in cash. Besides, it works on creating funding channels for businesses by collaborating with financial institutions and banks. Long Hau’s efforts have eased businesses’ financial pressure and lured more customers into the park.

Tuesday, February 8, 2011

Businesses can do more with support: economist

Vietnamese firms have come through the global economic crisis well and can achieve more with support from the government, economist Pham Chi Lan said.

Lan, a former member of the Prime Minister’s Research Commission, told Tuoi Tre that though the number of businesses in the country rose 12.5 times from 40,000 to 500,000 between 1990 and 1999, the change in political and social perception about their roles only started five years ago, five years after the Enterprise Law too effect.

What is the contribution of Vietnamese entrepreneurs?

Since October 13 has been chosen as the national day for them and not for business in general, it is clear that Vietnam has started to recognize their contributions. The number of businesses, at around six per 1,000 population, is still small compared to other countries where the average rate is 19 per 1,000 people in low-income nations and 29 per 1,000 in middle-income countries.

The fact that more than 1 million jobs have been created, mainly in the private sector, is enough to show the undeniable contributions of Vietnamese entrepreneurs. During the crisis, the number of enterprises going bankrupt and the percentage of workers laid off were very small, making Vietnam one of a handful of countries enjoying positive growth rate during the period.

What kept our businesses afloat during the economic downturn?

It was the national campaign to promote the consumption of domestically-made goods.

But the main problem is that in the campaign policymakers just paid attention to the tip of the iceberg by calling for consumer patriotism and developing the distribution system.

The more important part, support for businesses to adopt global technological and management advances to cut costs and improve quality and packaging, has yet to receive attention.

What are main shortcomings of Vietnamese businesses and entrepreneurs?

Though many Vietnamese entrepreneurs are competent at doing business, they are desperately short of capital.

Since Vietnam does not have enough resources for all, it is allocating most of the resources to state conglomerates. So Vietnam should consider this more carefully so that capital will be redirected to those who operate the most efficiently.

Another problem is that a large part of our resources is channeled into the real-estate and stock markets and not manufacturing due to our administrative system, legal framework, and policy making. So our policymakers are still playing catch-up with the market and not moving ahead of it.

Are the existing incentives enough to promote Vietnamese goods at home?

There are a lot of incentives but they have little effect.

For example, the 15 measures the government announced to support development of small and medium-sized enterprises in 2006-2010 … A survey by the Central Institute for Economic Management found that only 12 of them have been implemented.

[However] even the measures have had little effect since there are only nine municipal credit guarantee funds for small and medium-sized enterprises in the country’s 63 provinces and cities, with just three actually operational.

There are too many policies that require a large number of guiding documents. So the most practical solution is to focus on the implementation and effectiveness of each policy.

To back Vietnamese businesses, what areas should policies focus on?

Dominating the domestic market and then expanding to the global market needs outstanding quality at reasonable prices. So the application of technological advances is the key.

Though we claim that research and development is a priority, the Ministry of Science and Technology returns hundreds of billions of dong [meant for research] to the budget every year since. The research projects receiving ministry funding are also impractical.

So the system should be changed and funding should go directly to businesses who want to take drastic action for their survival.

Businesses can do more with support: economist

Vietnamese firms have come through the global economic crisis well and can achieve more with support from the government, economist Pham Chi Lan said.

What is the contribution of Vietnamese entrepreneurs?

What kept our businesses afloat during the economic downturn?

It was the national campaign to promote the consumption of domestically-made goods.

But the main problem is that in the campaign policymakers just paid attention to the tip of the iceberg by calling for consumer patriotism and developing the distribution system.

The more important part, support for businesses to adopt global technological and management advances to cut costs and improve quality and packaging, has yet to receive attention.

What are main shortcomings of Vietnamese businesses and entrepreneurs?

Though many Vietnamese entrepreneurs are competent at doing business, they are desperately short of capital.

Are the existing incentives enough to promote Vietnamese goods at home?

There are a lot of incentives but they have little effect.

There are too many policies that require a large number of guiding documents. So the most practical solution is to focus on the implementation and effectiveness of each policy.

To back Vietnamese businesses, what areas should policies focus on?

Dominating the domestic market and then expanding to the global market needs outstanding quality at reasonable prices. So the application of technological advances is the key.

So the system should be changed and funding should go directly to businesses who want to take drastic action for their survival.

Sunday, February 6, 2011

Domestic firms gain confidence in business outlook: survey

Domestic firms are pinning high hope on business outlook since Vietnam’s business confidence index (BCI) bounded back in the third quarter, up three points over the last quarter and 37 points against the third quarter in 2008.

The survey, conducted by Vietnam World Vest Base Financial Intelligence Services and PetroVietnam Finance Investment and Consultancy Co, was carried out on 262 companies in 11 domestic key industries, of which over 70 percent were medium and small-sized businesses.

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

Over 70 percent of them believed that Vietnam's economy was better than a year ago and nearly 73 percent of businesses believe their profits will rise in the next 12 months. The number of businesses who were optimistic about the prospects for profit growth was around 10.8 percent in the first quarter’s BCI survey.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

When asked to make a forecast about the country’s economy in the next 12 months, 84.35 percent of those interviewed said the economy would be better and none believed they would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

The result also showed that many domestic businesses were still concerned about the adverse effects to their business operations of inflation and fluctuations in the exchange rate between the US dollar and Vietnamese dong.

Domestic firms gain confidence in business outlook: survey

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

Friday, January 21, 2011

Economic recovery helps businesses increase salaries

Better business results and the recovery of the economy after the global economic crisis are the main reasons for businesses to increase salaries for their employees.

The results of a salary survey conducted by Mercer, one of the world leading providers of human resource consultancy services and Vietnam’s TalentNet Corporation announced Thursday showed that the average salary increase in 2010 is 12.4 percent, nearly 0.2 percent higher than last year’s figure.

Chemical and banking sectors saw the highest salary increase of 13.9 percent, followed by the pharmaceutical sector with 13.5 percent.

The survey, which was conducted at 253 joint venture and foreign-invested companies, also reported that salaries increases were seen in almost all businesses.

The rate of surveyed businesses that did not increase salaries for employees dropped to 0.79 percent from 13 percent in 2009. This shows that companies are now paying more attention to salary policies as well as methods to attract and keep human resources.

The voluntary resignation rate in 2009 also fell 3.1 percent compared to the previous year to 13.3 percent, proving the stability of the labour market.

The Mercer salary report, which has been conducted in Vietnam since 1999, provides businesses with bases to compare their salaries with the market in order to put forth more effective salary polices.

Monday, January 17, 2011

Economic recovery helps businesses increase salaries

Better business results and the recovery of the economy after the global
economic crisis are the main reasons for businesses to increase
salaries for their employees.

The results of a
salary survey conducted by Mercer, one of the world leading providers of
human resource consultancy services and Vietnam’s TalentNet
Corporation announced on October 7 showed that the average salary
increase in 2010 is 12.4 percent, nearly 0.2 percent higher than last
year’s figure.

Chemical and banking sectors saw
the highest salary increase of 13.9 percent, followed by the
pharmaceutical sector with 13.5 percent.

The survey, which was conducted at 253 joint venture and foreign-invested
companies, also reported that salaries increases were seen in almost all
businesses.

The rate of surveyed businesses
that did not increase salaries for employees dropped to 0.79 percent
from 13 percent in 2009. This shows that companies are now paying more
attention to salary policies as well as methods to attract and keep
human resources.

The voluntary resignation rate
in 2009 also fell 3.1 percent compared to the previous year to 13.3
percent, proving the stability of the labour market.

The Mercer salary report, which has been conducted in Vietnam
since 1999, provides businesses with bases to compare their salaries
with the market in order to put forth more effective salary polices./.

Thursday, January 13, 2011

HCM City hosts furniture-handicrafts expo

Over 300 woodwork and handicraft businesses from both in and outside of
the country are displaying their products at the International Furniture
and Handicrafts Fair (EXPO 2010) which opened in Ho Chi Minh City
on October 6.

The event, jointly held by HCM
City’s Department of Industry and Trade and the Trade Promotion
Department under the Ministry of Industry and Trade, is to boost exports
of domestic wooden and handicraft products.

With
700 stands, the five-day fair will bring domestic woodwork and
handicraft businesses together, especially small and medium-sized
enterprises, who have little opportunity to take part in overseas
exhibitions, with their international partners.

As
part of the event, an online expo will be set up to help businesses
promote their trademarks by posting their information and products,
saving transaction times and costs.

So far, over
800 companies have registered 7,000 products on the online expo, an
increase of 21 percent in the number of businesses and 40 percent in
products compared with 2009.

In addition, there will be seminars for Vietnamese businesses and importers held by Turkey and Japan .

Over the past year, the International Furniture and Handicrafts Fair
has attracted a large number of participants, helping to raise the
industry’s export turnover from 590 million USD in 2001 to 2 billion USD
in 2005 and 3 billion USD in 2009. This year’s figure is expected to
reach almost 4.5 billion USD./.

Wednesday, January 5, 2011

Dialogue on Vietnam’s tax, customs policies held in RoK

A dialogue on Vietnam’s new tax and customs policies was held in Seoul, the Republic of Korea (RoK), last week, drawing the participation of 118 local businesses.

The dialogue took place as part of a working visit to the RoK by a Vietnamese Finance Ministry delegation led by Deputy Minister Do Hoang Anh Tuan.

After briefing about Vietnam ’s tax and customs policies, the Vietnamese delegation answered RoK businesses’ questions on the country’s tax incentives, corporate taxes, value added tax and new regulations on customs procedures.

Tax incentives and relevant policies are always the leading interests of RoK businesses, Deputy Minister Tuan said, adding that more than 70 percent of RoK businesses investing in Vietnam are small and medium sized ones so they face difficulties in accessing policies and dealing with issues on procedures and tax incentives.

Tuan said that Vietnam’s Finance Ministry and General Department of Taxation have planned to coordinate with RoK authorised agencies in facilitating RoK businesses’ operations in Vietnam .

According to Tuan, this was the first dialogue between the two sides since their tariff cooperation agreement was signed.

Saturday, December 25, 2010

Vietnam, RoK step up investment cooperation

Vietnam wishes that businesses from the Republic of Korea (RoK) would increase their investment in the country, especially industries with high-added value and modern technology-intensive industries.

The statement was delivered by Deputy Minister of Planning and Investment Dang Huy Dong at a seminar, jointly held by his ministry, the RoK Chamber of Commerce and Industry, the RoK Business Association and the RoK Embassy, in Hanoi Wedenesday.

The seminar focused on policies and opportunities for infrastructure development investment within the public-private partnership (PPP) framework and policies to encourage foreign investment in industrial zones.

Deputy Minister Dong said the Vietnamese government applauded the RoK foreign direct investment (FDI) flow in Vietnam , which, he said, greatly contributes to the country’s socio-economic development.

The RoK Ambassador Park Seok Hoan expressed his belief on cooperative relations between the two countries’ businesses, saying with an open investment environment, Vietnam will become a more attractive destination for the RoK investors.

By the end of August this year, the RoK ranked 88 th among Vietnam’s FDI providers with 2,605 projects registered at US$23 billion, according to the Ministry of Planning and Investment.

The two governments have agreed to lift the biletaral relations to strategic partnership.

The RoK businesses have been involved in most of sectors in Vietnam , from infrastructure, telecommunications and mechanics to real estate, auto manufacturing, shipbuilding and restaurant services.

Tuesday, December 21, 2010

Vietnam, RoK step up investment cooperation

Vietnam wishes that businesses from the Republic of Korea (RoK)
would increase their investment in the country, especially industries
with high-added value and modern technology-intensive industries.

The statement was delivered by Deputy Minister of Planning and
Investment Dang Huy Dong at a seminar, jointly held by his ministry, the
RoK Chamber of Commerce and Industry, the RoK Business Association and
the RoK Embassy, in Hanoi on September 29.

The
seminar focused on policies and opportunities for infrastructure
development investment within the public-private partnership (PPP)
framework and policies to encourage foreign investment in industrial
zones.

Deputy Minister Dong said the Vietnamese
government applauded the RoK foreign direct investment (FDI) flow in
Vietnam , which, he said, greatly contributes to the country’s
socio-economic development.

The RoK Ambassador Park
Seok Hoan expressed his belief on cooperative relations between the two
countries’ businesses, saying with an open investment environment,
Vietnam will become a more attractive destination for the RoK
investors.

By the end of August this year, the RoK
ranked 88 th among Vietnam ’s FDI providers with 2,605 projects
registered at 23 billion USD, according to the Ministry of Planning and
Investment.

The two governments have agreed to lift the biletaral relations to strategic partnership.

The RoK businesses have been involved in most of sectors in Vietnam
, from infrastructure, telecommunications and mechanics to real estate,
auto manufacturing, shipbuilding and restaurant services./.

Tuesday, December 7, 2010

Seminar urges boost in fruit exports

HCM CITY — Closer links need to be forged between farmers, Government, scientists and businesses towards the value of Vietnamese agricultural products, particularly jackfruit and banana, experts said at a seminar yesterday.

Nguyen Lam Vien, director of Vinamit Co, a major producer of jackfruit and other fruit chips, said the State needs to initiate support policies for the sector, including financial support, to ensure that the co-operative model is effective.

Currently, 80 per cent of the processing firms' material purchases are done through intermediary traders. The links between businesses and farmers are not close, and this ends up with the latter making low profits.

The situation needs to be improved quickly in order to avoid the necessity to import produce since businesses have stable, all-year-round demand for raw product in huge quantities. More importantly, they need the best quality products so that their trademarks remain popular all over the world, Vien said.

For instance, Vinamit plans to import raw product from India for jackfruit produce, he added.

Scientists should conduct research to create new high quality seed to help businesses and farmers, and improve cultivation as well as processing efficiency.

New seeds have to meet market demands, especially for processing and export purposes, and businesses should cooperate with scientists in exchanging market information, Vien said.

Effective co-operation between businesses, scientists and farmers would open doors to many more foreign markets, he added.

The Vietnamese Academy of Science and Technology's Institute of Tropical Biology informed the seminar of ideal fruit requirements to serve the processing industry. A jackfruit tree has to produce fruits weighing more than 10kg each and produce fruits weighing more than 200kg per tree.

Banana plants have to produce large fruit with diameters of more than 4 centimetres.

Le Duy Minh, chairman of Viet Nam Business and Farming Association said State-scientist-business-farmer co-operation was also necessary to ensure food safety and hygiene.

At the seminar, Vinamit signed a memorandum of understanding on co-operating with scientists and farmers to produce new, high quality seeds. Vinamit would then provide the seeds as well as effective cultivation and harvest know-how to the farmers.

Nguyen Quoc Binh, head of Vinamit Co's Foreign Affairs Department, said his company is currently suffering a severe shortage of raw material for processing. — VNS

Wednesday, November 24, 2010

Japan urges Vietnam to develop supporting industries

The Director of Japan’s External Trade Organization (JETRO) in Ho Chi Minh City Yoshida Sakae has recommended that Vietnam prioritizes developing its supporting industries to attract investors.

Sakae said that the number of Japanese businesses investing in Vietnam only represents one-seventh of the amount that invests in Thailand as the nation’s supporting industries do not yet meet Japanese businesses’ requirements.

The availability of domestic suppliers is of special concern to Japanese businesses before they invest, he said.

According to Sakae, attracting investment and developing supporting industries are in Vietnam’s best interests. Under commitments to the World Trade Organization and the agreement to establish the ASEAN Free Trade Area (AFTA), Vietnam will abolish tariffs by 2015.

However Vietnam’s young automobile and computer industries which depend on imported parts cannot compete with foreign products, he said.

Sakae emphasized the necessity for Vietnam to have a sound investment policy for supporting industries with a special focus on mechanical engineering, steel, plastics and machine parts.

On Japanese businesses’ investing in Vietnam , Sakae said that Vietnam could be an alternative attractive destination as a number of Japanese businesses are intending to leave China due to the increasing amount of strikes and rising production costs in the country.

JETRO’s statistics revealed that there are more than 1,000 Japanese businesses currently investing in Vietnam.

Apart from light industry, assembly plants and infrastructure development, Japanese businesses are also involved in oil refining, steel, trade and retail services.

He forecast that Japanese businesses will get involved in every industry in Vietnam.

The Vietnamese Ministry of Planning and Investment says that by July 2010, Japan had 1,244 valid projects with a total combined capital of nearly US$19.6 billion, ranking third amongst foreign investors in Vietnam.

Japan urges Vietnam to develop supporting industries

The Director of Japan’s External Trade Organisation (JETRO) in Ho Chi
Minh City Yoshida Sakae, has recommended that Vietnam prioritises
developing its supporting industries to attract investors.

Sakae said that the number of Japanese businesses investing in
Vietnam only represents one-seventh of the amount that invests in
Thailand as the nation’s supporting industries do not yet meet
Japanese businesses’ requirements.

The availability of domestic suppliers is of special concern to Japanese businesses before they invest, he said.

According to Sakae, attracting investment and developing supporting
industries are in Vietnam ’s best interests. Under commitments to the
World Trade Organisation and the agreement to establish the ASEAN Free
Trade Area (AFTA), Vietnam will abolish tariffs by 2015.

However Vietnam ’s young automobile and computer industries which
depends on imported parts cannot compete with foreign products, he said.

Sakae emphasised the necessity for Vietnam to
have a sound investment policy for supporting industries with a special
focus on mechanical engineering, steel, plastics and machine parts.

On Japanese businesses’ investing in Vietnam , Sakae said that
Vietnam could be an alternative attractive destination as a number of
Japanese businesses are intending to leave China due to the
increasing amount of strikes and rising production costs in the country.

JETRO’s statistics revealed that there are more than 1,000 Japanese businesses currently investing in Vietnam .

Apart from light industry, assembly plants and infrastructure
development, Japanese businesses are also involved in oil refining,
steel, trade and retail services.

He forecast that Japanese businesses will get involved in every industry in Vietnam .

The Vietnamese Ministry of Planning and Investment says that by July
2010, Japan had 1,244 valid projects with a total combined capital
of nearly 19.6 billion USD, ranking third amongst foreign investors in
Vietnam./.

Tuesday, November 16, 2010

VN-Russia economic forum held in Moscow

MOSCOW — Almost 400 businesses attended a Viet Nam-Russia economic forum entitled "Strategic partnership – comprehensive co-operation" in Moscow on Wednesday.

Addressing the opening ceremony, Vice President of the Chamber of Commerce and Industry of the Russian Federation George Petrov said Russia and Viet Nam had combined actions based on a fine traditional friendship, mutual trust and understanding, active political dialogue and co-operation for mutual interest.

Two-way trade value recorded a year-on-year increase of 8.2 per cent to more than US$1.5 billion in 2009 despite the global economic crisis and reached $924 million in the first half of this year, he said.

Viet Nam now had 59 Russian-invested projects totalling more than $576 million, excluding those in the oil and gas industry, he added.

However, Petrov noted, the two countries had yet to bring into play the full potential of the bilateral relationship.

He suggested businesses from the two countries increase contacts, exchange market information and further co-ordinate with each other to gain access to other regional markets.

He expressed his hope that both countries would sign a number of co-operation agreements to further promote the strategic partnership and comprehensive co-operation during Russian President Dmitry Medvedev's upcoming visit to Viet Nam. Petrov also called on Vietnamese businesses to invest in and co-operate with Russia's Far East and Sibir regions.

Vice President of the Viet Nam Chamber of Commerce and Industry (VCCI) Pham Gia Tuc took the opportunity to introduce almost 100 Vietnamese businesses participating in the Viet Nam Days in Russia Expo and the VCCI's business promotion and connectivity activities.

For his part, Minister of Industry and Trade Vu Huy Hoang spoke of the advantages of Viet Nam's business and investment environment, saying that the nation was an active developing market which is safe, stable and deeply integrated in the global economy.

Viet Nam's policy on foreign-invested businesses considered them as one of its own and created favourable conditions for investors, he confirmed.

He called on overseas Vietnamese businesspeople in Russia to invest directly or through joint ventures in their home country.

A seminar on the establishment of representative offices for Vietnamese businesses in Russia and a meeting between businesses from the two countries took place within the framework of the forum. — VNS

Wednesday, October 6, 2010

Outstanding Vietnamese businesses honored

Two hundred outstanding businesses received the Sao Vang Dat Viet (Vietnam Gold Star) Award at a ceremony held in Ho Chi Minh City on Thursday.

Deputy Prime Minister Truong Vinh Trong congratulated the awarded businesses, acknowledging and honoring their contributions to the country’s development.

He said he believed that Vietnamese entrepreneurs would further develop, making more contributions to the country and honoring Vietnam’s reputation in the world.

Vietnam is facing both opportunities and challenges in the context of integration and economic development, he said, urging the business circle to be active and creative and unite together.

On behalf of the government, Deputy PM Trong commended the Ho Chi Minh Communist Youth Union and the Vietnam Youth Federation, for their creative activities and organization of the award ceremony annually.

Since the annual event began in 2003, as many as 1,327 Vietnamese businesses have been honored.

The 200 businesses selected this year all had stable growth rates. Their combined turnover exceeded VND475 trillion (US$24.4 billion). They collectively contributed nearly VND44 trillion to the State budget, earned after-tax profits of more than VND48 trillion and created over 390,000 new jobs.

Top ten 2010 Vietnam Gold Star Awards go to FPT Telecom Joint Stock Co, Truong Hai Auto Corp, HANAKA Group, Tien Phong Plastic Joint Stock Co, PetroVietnam Construction Joint Stock Corp, Thai Nguyen Steel Joint Stock Co, Vietnam Garments Joint Stock Co, Trung Nguyen Coffee Group, Vietinbank and Vietnam Rubber Industry Group.

Tuesday, October 5, 2010

Outstanding Vietnamese businesses honoured

Two hundred outstanding businesses received the Sao Vang Dat Viet
(Vietnam Gold Star) Award at a ceremony held in Ho Chi Minh City on
September 2.

Deputy Prime Minister Truong Vinh Trong
congratulated the awarded businesses, acknowledging and honouring their
contributions to the country’s development.

He said he believed
that Vietnamese entrepreneurs would further develop, making more
contributions to the country and honouring Vietnam’s reputation in
the world.

Vietnam is facing both opportunities and
challenges in the context of integration and economic development, he
said, urging the business circle to be active and creative and unite
together.

On behalf of the government, Deputy PM Trong
commended the Ho Chi Minh Communist Youth Union and the Vietnam Youth
Federation, for their creative activities and organisation of the award
ceremony annually

Since the annual event began in 2003, as many as 1,327 Vietnamese businesses have been honoured.

The 200 businesses selected this year all had stable growth rates.
Their combined turnover exceeded 475 trillion VND. They collectively
contributed nearly 44 trillion VND to the State budget, earned after-tax
profits of more than 48 trillion VND and created over 390,000 new jobs.

Top ten 2010 Vietnam Gold Star Awards go to FPT Telecom
Joint Stock Company, Truong Hai Auto Corporation, HANAKA Group, Tien
Phong Plastic Joint Stock Company, PetroVietnam Construction Joint Stock
Corporation, Thai Nguyen Steel Joint Stock Company, Vietnam Garments
Joint Stock Company, Trung Nguyen Coffee Group, Vietinbank and Vietnam
Rubber Industry Group./.

Friday, February 18, 2011

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