Bedding company Everpia, the only foreign-linvested listed firm in Vietnam's stock exhange, has just bought out its affiliate, the ailing cloths production firm Texpia JSC. Everpia deputy general director Yu Sung Dae shares with VIR’s Huu Hoe the considerations behind the deal and his confidence regarding the company’s ambitious targets for 2018. Yu Sung Dae Everpia’s investment into Texpia is at the risk of being utterly lost as the company keeps accummulating losses. Why did your company deicde not to divest Texpia or get rid of it through similar measure and instead went all-in and bought the whole project? Last year, Everpia put as much as VND26 billion ($1.1 million) as provisions for its investment in Texpia. The decision to fully acquire Texpia aims to comprehensively deal with the issues at the company. After buying the entire assets, production lines, material and business rights, we will restructure Texpia and streamline its cloths production … [Read more...] about Everpia sets ambitious targets for 2018
Business targets
BUSINESS IN BRIEF 26/12
Hanoi budget income exceeds 2015 goal The information was released at a recent meeting on the city's implementation of socio-economic development and State Budget tasks during the 2011-2015 period, as well as socio-economic development plans for 2016. The event reviewed the outcomes of the city's socio-economic development performance and budget execution in 2015. According to a report by the committee, State budget expenditure was estimated at 70 trillion VND (3.1 billion USD), meeting 118 per cent of the annual forecast. Hanoi People's Committee Chairman Nguyen Duc Chung said the city maintained a stable growth rate in the reviewed period, with gross regional domestic product (GRDP) estimated to rise 9.3 percent by year-end, the highest level over the past four years. The committee's report said the city's index industrial production, largely contributing to the overall economic growth, increased by 8.05 per cent over the same period last year. The construction industry also … [Read more...] about BUSINESS IN BRIEF 26/12
German businesses setting up shop
Many German companies have increased their investments to set up stable production bases in Vietnam, to meet the country’s growing demands amid deeper global integration. Vietnam’s manufacturing sector is boosted by new German investment projects Photo: Le Toan Siemens, Mercedes-Benz, and Bosch made the move after they realised the huge potential of the local market, where approximately 46 per cent of all Vietnamese machinery imports are from Germany. One German company that has been present in Vietnam long-term is Siemens, which dates back to 1979, when the company supplied and installed the first two industrial steam turbines at the Bai Bang paper mill. The establishment of its representative office in 1993 and the shift to a limited company in 2002, as well as the inauguration of the Siemens Automation System plant in the southern province of Binh Duong in 2005, mark key developments and milestones in Siemens’ history in Vietnam. In particular, Siemens Vietnam … [Read more...] about German businesses setting up shop
BUSINESS IN BRIEF 20/7
Regional tourism ministers to meet in city Tourism ministers of Vietnam, Laos, Cambodia and Myanmar will attend a tourism meeting in HCMC this September to discuss the next move to boost the tourism's image "Four Countries-One Destination." Under the program approved by the Ministry of Culture, Sports and Tourism, the meeting will be an important part of the International Travel Expo 2012 in HCMC (ITE-HCMC 2012) taking place on September 13-15. At the meeting, tourism ministers of the four countries will discuss the tourism cooperation plan for the 2012-2015 period. Thailand will be invited to join the meeting to exploit tourism potentials and advantages, develop the image of "Five Countries-One Destination" and make the tourism in the Mekong River area more attractive to international tourists. Together with the meeting, the organizers of ITE-HCMC 2012 are also under preparation for the meeting of mayors of the cities from the expanded Greater Mekong Sub-region, including … [Read more...] about BUSINESS IN BRIEF 20/7
BUSINESS IN BRIEF 13/2
Stock markets perform poorly in 2011 Up to 60 percent of listed firms on both stock markets had poor performance, and 85 firms were mired in the red last year, said the State Securities Commission. The final statistics is not yet available though most listed firms have submitted their financial statements. However, SSC said 2011 was a grim year for the economy, especially for the equity market. Listed firms had to grapple with many problems, from higher interest rates to high input costs and difficulties to mobilize funds. Understandably, the number of loss-making enterprises in 2011 was higher than in the previous year: 85 compared to 50. Property companies suffered the most, followed by construction, sea-freight, power generation and financial enterprises. Property companies suffered the most, followed by construction, sea-freight power generation and financial enterprises. Quoc Cuong Gia Lai Joint Stock Co. (QCG) posted the accumulated losses for the whole year of 2011 at … [Read more...] about BUSINESS IN BRIEF 13/2
BUSINESS IN BRIEF 12/2
Tuyen Quang miners to export barites The Government has allowed barites ore exploitation and processing enterprises in the northern province of Tuyen Quang to export about 70,000 tonnes of barites this year after meeting domestic demands, said Hoang Quoc Binh, director of the province's Department of Industry and Trade. Binh expected that exports of barites, used in petrol, chemical and glass production industries, would help the province meet its export target of US$15 million this year. The province currently has six barites ore producers, whose yearly total output reaches roughly 320,000 tonnes. Banks flirt with low interest rates Vietcombank announced on Thursday a reduction of up to 2 per cent in interest rates on loans made in Vietnamese dong, depending on terms. The bank is now posting lending rates ranging from 16 per cent per year for loans made to exporters and manufacturers to 20 per cent per year for loans made to enterprises in non-productive sectors, including … [Read more...] about BUSINESS IN BRIEF 12/2
BUSINESS IN BRIEF 8/5
Brazil slaps anti-dumping lawsuit on Vietnamese steel The Brazilian Ministry of Development, Industry and Foreign Trade (MDIFT) has officially begun an anti-dumping investigation into rolled steel imported from Vietnam and some other countries. The Vietnam Competition Authority under the Ministry of Industry and Trade said Aperam Inox America do Sul, S.A. filed the lawsuit and the MDIFT will conduct investigations from January to December 2012. It will use Taiwan as a comparison for the dumping amplitude up to 22.5 percent. Businesses have been allowed 70 days, including extension time, to answer all questions related to the investigation as of April 13, 2012. Japanese economists share experiences with Vietnam Japanese economists shared experiences with Vietnamese partners at a seminar on 'Economic Bubbles: Lessons Learnt from Japan', held in Hanoi on May 5. A "bubble economy" is one in which a lot of trade takes place with discrepancies between the trading price and the … [Read more...] about BUSINESS IN BRIEF 8/5
BUSINESS IN BRIEF 19/12
Business environment needs stability Around 55,000 enterprises in Vietnam may file for bankruptcy by the end of this year but the situation was not overly serious, one official said. Bui Anh Tuan, Deputy Director of the Ministry of Planning and Investment's Business Registration Division, made the comment at a seminar on business development and investment in Hanoi on December 11. "The situation in Vietnam is not really that pessimistic as the country recorded nearly 48, 473 bankrupted enterprises in the first eleven months of the year. This is the same as the rate of from 11%-15% annual bankrupted enterprises in Japan and the US," Tuan said. The country is estimated to have 65,000 new businesses this year, meaning the country will still have 10,000 more operational enterprises during the year, he assessed. However, he admitted that due to the large number of enterprises filing for bankruptcy, it has resulted in a deficiency in state budget revenues this year. Deputy … [Read more...] about BUSINESS IN BRIEF 19/12
BUSINESS IN BRIEF 16/10
S Korean expert calls for collaboration in IT software products Developing high-skilled information technology manpower and a software sector were discussed among experts from South Korea and Viet Nam at a conference in Ha Noi yesterday. The Government wants revenue from the IT industry to reach US$16-18 billion per year by 2020, with local companies capable of making both hardware and software products to operate globally. However, Byeon Hwa Seong, deputy director of the Korean National IT Industry Promotion Agency, pushed for collaboration between IT companies and institutes to enhance the software sector. He also pointed out the Korean IT industry was still weak in core IT technology, semiconductors and software sectors. The industry in SKorea was still monopolised by large enterprises and by hardware products, he said. "Thus, to reach the new software convergence in the IT sector, there are two fundamentals, including strengthening IT human resource and the … [Read more...] about BUSINESS IN BRIEF 16/10
Nam Dinh Creating the Best Conditions for Businesses
Despite many challenges, over the past years, Nam Dinh province has always strived to improve the investment environment, develop mechanisms and policies to attract investment, support businesses, improve transport infrastructure, construct infrastructure in industrial parks and raise investment promotion campaigns. The province also raises awareness of its authority of all levels of the role of businesses in economic and social development, thus aims to build a really friendly authority, creating the best conditions for businesses to develop.Improving the quality of supporting services In the target of socio-economic development in 2013, Nam Dinh province determines to use all resources and strives to keep stable economic growth in a reasonable level and improves the efficiency and sustainability of the development. The province also implements asynchronous solutions to promote production, business and industrial development, and improve the quality of services. Accordingly, the … [Read more...] about Nam Dinh Creating the Best Conditions for Businesses