Rubber companies are facing many difficulties this year The price of rubber has been forced down by sharp decreases in the world market price and global demand. The price of rubber on the Tokyo Commodity Exchange fell by 1.1 per cent to $1.57 per kilogramme, equivalent to $1,570 per tonne. One of the reasons dragging down rubber prices is the decreasing oil price. Moreover, at this time of the year exploitations halts, decreasing output. According to the Ministry of Industry and Trade’s Department of Export and Import, in the first five months of this year exported rubber volume increased lightly, but its value reduced. Rubber exports in the first five months were estimated at 424,000 tonnes worth $620 million, up 17.4 per cent in volume but down nearly 20 per cent in value compared to the same period in 2017. The changes in the price of rubber made rubber companies more careful in their business planning, as well as caused concerns for shareholders. At the recent annual … [Read more...] about Rubber companies set glum business targets
Business targets
BUSINESS IN BRIEF 5/6
Vietnam eager to develop Lien Chieu deep seaport The government has been urging the authorities to appraise Lien Chieu Seaport, showing strong support and promising smoother sailing for the project. Deputy Prime Minister Trinh Dinh Dung recently urged the Ministry of Planning and Investment (MPI) to appraise the capital sources and mobilisation methods of investment capital at Lien Chieu port. Besides, the DPM assigned the Danang People’s Committee to complete the pre-feasibility report for the project after the city studied MPI’ appraisal. Based on reports of MPI and Danang city, the Ministry of Transport (MoT) was asked to build the investment planning evaluation report to submit the prime minister for approval. The assignment of the DPM shows Vietnam’s eagerness to develop the Lien Chieu Seaport project, which is considered one of two key projects that aim to boost the central city as a main logistics centre in the ASEAN and the East-West Economic Corridor (EWEC) … [Read more...] about BUSINESS IN BRIEF 5/6
Everpia sets ambitious targets for 2018
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 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 19/6
Nawaplastic still hungry for Binh Minh Plastic shares Owning a dominant stake in Binh Minh Plastic (BMP) did not quench Nawaplastic Industry Co., Ltd. (Nawaplastic)’s thirst for BMP shares. Most recently, Nawaplastic registered to buy an additional 1.17 million BMP shares to increase its holding to 44.525 million shares, equalling 54.39 per cent of the charter capital. The transaction is expected to occur between June18 and July16. The registered share volume is the remaining part of the 2.86 million shares that Nawaplastic failed to buy during previous transactions. Notably, Nawaplastic registered to buy 2.86 million BMP shares during transactions on May 14-June 12, however, the Thai investor ended up buying 1.69 million of the registered shares as BMP did not match Nawaplastic’s target price. BMP manufactures and trades civil and industrial products made of plastic and rubber. The company also designs, manufactures, and trades in plastic moulds for the casting industry; … [Read more...] about BUSINESS IN BRIEF 19/6
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 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