Chemicals company fined for securities fraud Duc Giang - Lao Cai Chemicals Co was fined VND230 million (US$10,900) for fraud in sales of securities. The State Securities Commission fined the company VND200 million for carrying out a public offering of securities without registering with the commission. The remaining VND30 million in fines was for filing a registration to be a public company 12 months late. Bao Viet Securities Co sees jump in profits Bao Viet Securities Co (BVS) reported a profit of over VND55 billion (US$2.6 million) in the second quarter of this year thanks to rocketing incomes from their brokerage operations. The profits are bright news for the securities firm that posted a loss of about VND26 billion ($1.2 million) for the same period last year. Total revenue for BVS in the quarter reached VND70.67 billion ($3.3 million), up 47 per cent from the same period last year. Total revenue for the first six months hit VND116 billion ($5.5 million), up 24 per cent, … [Read more...] about BUSINESS IN BRIEF 25/7
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BUSINESS IN BRIEF 23/7
Fuel prices up again after straight drops Fuel wholesalers Friday increased fuel retailing prices for the first time after five consecutive price cuts beginning in May. But this time they raised prices by different amounts as they are now allowed to take the initiative in proposing price adjustments. Taking effect since 10pm Friday, the increase saw prices of A92 gasoline and diesel oil supplied by Petrolimex, the country's largest fuel wholesaler, rise by VND400 a liter, and kerosene, VND300 a liter. Meanwhile, PV Oil and Saigon Petro hiked prices of all fuel commodities by VND400 a liter, except for diesel oil. In brief, A95 gasoline now fetches VND21,500 a liter, A92, VND21,000 a liter, diesel oil, VND20,300 a liter, and kerosene ranges from VND20,150 to VND20,250 a liter, depending on suppliers. (US$1 = VND20,800) In late June, the Ministry of Finance released a document, stipulating that fuel wholesalers can propose fuel price adjustment through their own initiatives, … [Read more...] about BUSINESS IN BRIEF 23/7
BUSINESS IN BRIEF 16/7
Ministry mulls amending fuel trading law The Ministry of Finance has sought permission from the government to amend Decree No 84 on the management of the fuel trading activities, in a bid to increase the transparency of wholesalers' financial states, and reducing disadvantages for consumers. The adjustments focus on changing the cost price calculation, commission granting, and the deduction for the price stabilization fund, in a way that matches the real market development, the ministry said. It demanded that the 'fixed profit' be removed from the fuel cost price calculation, to increase the transparency of the losses and profitable states of the fuel wholesalers. Currently, a set profit of VND300 is allowed to be included in fuel retail prices, which means wholesalers will always enjoy at least VND300 in profits on every liter of fuel, regardless of the selling prices. While fuel retail prices are currently adjusted based on the average import prices within 30 days, the … [Read more...] about BUSINESS IN BRIEF 16/7
BUSINESS IN BRIEF 21/6
PM requires careful monetary policies On June 18, PM Nguyen Tan Dung issued Instruction No. 19 on the socio-economic development plan and budget estimates for 2013, and State budget investment plan from 2013-2015. In the Instruction, the PM set targets for 2013, including economic development targets related to economic restructuring. The main tasks in developing the economy during the next year include monetary polices, credit, tax, land, administrative innovation, and improved economic growth to reach GDP growth of 6-6.5%. Restructuring the economy will focus on three main fields, including investment, the financial markets, and enterprises. The PM also urged the restructuring of State-owned enterprises, improved competitiveness and better operational effectiveness of state economic groups. Serious and explicit sanctions need to be applied to raise the effectiveness of state-owned capital and assets. Monetary policies will favour private enterprises to help them access … [Read more...] about BUSINESS IN BRIEF 21/6
BUSINESS IN BRIEF 30/10
Ministry urges State firms to restructure Restructuring state-owned enterprises (SOEs) is vital to the economic health of the country, according to the Ministry of Planning and Investment. The ministry said State-owned businesses accounted for only 37-38 per cent of GDP even though they represented 70 per cent of social services investment, 50 per cent of State investment, 60 per cent of loans from commercial banks, and 70 per cent of Official Development Assistance loans. The ministry's Central Economic Management Research Institute said that SOEs were not as profitable as businesses in other sectors. They also had weak managers who failed to implement policies, it said. Monitoring systems at businesses had also been weak, and, as a result, capital sources are not used effectively, he said. Experts said the SOEs must become more competitive and the State's managing and regulating roles must be improved. The restructuring of SOEs has been done at a sluggish pace, and … [Read more...] about BUSINESS IN BRIEF 30/10
BUSINESS IN BRIEF 14/4
Vietinbank sells off loads of shares Vietinbank (CTG) announced it had finished issuing nearly 598.8 million shares to increase its charter capital to VND26.2 trillion (US$1.2 billion) from VND20.2 trillion ($961.9 million). Around 80.3 per cent of the shares were sold to State shareholders. Funding for the issuance was raised from undistributed profit last year and capital surplus. The bank has decided to list more than 117.9 million shares, which were issued to non-state shareholders. Companies fined for disclosure violations Six listed firms were fined for violating disclosure regulations this week, the State Securities Commission reported. Construction firm Chi Linh (MCL), Yen Bai Cement and Minerals (YBC), Cavico Manpower Services (CMS), Drilling Mud Corp (PVC) and Huu Nghi Vinh Sinh Mining and Mechanic (MAX) were fined VND60-70 million (US$2,800-3,000) each for failing to release financial statements on time. Property developer Idico Petroleum (PXL) was fined … [Read more...] about BUSINESS IN BRIEF 14/4
BUSINESS IN BRIEF 10/11
First Cat Chu mangoes hit shelves in Japan The first batch of fresh Cat Chu mangoes from Vietnam hit shelves at an Aeon supermarket in Chiba prefecture, Japan on November 7. According to Trade Counselor to Japan Nguyen Trung Dung, about 3.5 tonnes of Cat Chu mangoes were exported to Japan in the first shipment. The mangoes are scheduled to go on sale at more than 200 Aeon grocery stores throughout Japan and sell for 429 to 645 JPY (3.48 to 5.24 USD) each. More than 80 tonnes of fresh mangoes will be shipped to the island country by air and sea by the end of 2015. Mangoes are loved by many Japanese people, but they are very expensive when grown in Japan, and can cost from 5,000 to 10,000 JPY (40.6-81.2 USD) each, a representative from Aeon said, adding that Cat Chu mangoes will enjoy good sales thanks to their affordable price. In addition to mangoes, red-fleshed dragon fruit will make its way to Japan. Vietnam, Italy enhance economic cooperation Visiting Italian President Sergio … [Read more...] about BUSINESS IN BRIEF 10/11
BUSINESS IN BRIEF 12/10
Donors urge quality public investment Donors called on Vietnam to restructure public investment to foster quality growth at a workshop in Hanoi on October 4. While examining the Ministry of Planning and Investment (MPI)’s five-year socio-economic development draft, most donors supported the country’s projected annual growth rate of 6.5 percent in the next five years instead of 7 percent. They said the reasonable rate would enable Vietnam to improve social protection policies, increase basic services for the poor and the most vulnerable groups, and create more jobs. Eamonn Murphy, the UN Resident Coordinator in Vietnam, said the country should pay attention to equity issues as economic growth alone cannot ensure human development. Rie Vejs Kjeldgaard, ILO representative in Vietnam, applauded issue of labour being pushed to the forefront aimed at reducing the unemployment rate amongst workers in urban areas to below 4 percent, creating jobs for over 8 million in five … [Read more...] about BUSINESS IN BRIEF 12/10
BUSINESS IN BRIEF 9/10
Only way out for long-delayed IP proposed by Hai Duong Stiffer measures were proposed to help break the current impasse of notorious long-delayed Viet Hoa-Kenmark Industrial Park in the northern province of Hai Duong. The Hai Duong Provincial People’s Committee just held a working session with related parties at Viet Hoa-Kenmark Industrial Park (IP) project and ultimately came to the conclusion that the IP must be sold in the upcoming time. Hai Duong IP Management Authority was assigned by the provincial People’s Committee to devise an official way out and submit it to the provincial management for approval. “The project has remained unsolved for quite a long time now, while the IP holds strategic importance in attracting investment to Hai Duong. This bottleneck must be tackled without further delay to unlock the so-far inhibited opportunities for others,” said a source from the provincial management. Also according to the source, the IP was unsuccessfully … [Read more...] about BUSINESS IN BRIEF 9/10
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