Industrial production expands 18 percent in Tien Giang Workers at a seafood processing factory at the My Tho Industrial Park of Tien Giang province The Mekong Delta province of Tien Giang saw a record yearly growth of 18 percent in industrial production value in the first half of this year, to nearly 51.1 trillion VND (2.245 billion USD), according to Director of the province’s Department of Industry and Trade Ngo Van Tuan. The director said most major industries of the province such as food processing, beverages, garment making, shoes and metal production posted good growth compared to 2017. He noted that foreign-invested enterprises operating in key local industrial parks were the driving force behind the strong growth. Tuan cited as an example Heineken Vietnam Brewery Tien Giang whose beer output rose by 39.4 percent year on year. The local shoe making industry enjoyed a 25 percent growth with many orders from foreign partners, especially from China. The for-export tra … [Read more...] about BUSINESS IN BRIEF 27/6
It support services for small business
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
HCMC tourism sector needs supporting services
HCMC tourism sector needs supporting servicesDao Loan HCMC - The government of HCMC is working on a plan to diversify tourism products but what travel firms need more is to have more supporting services for the sector. Last Tuesday, the city launched a new tour to Can Gio, which takes in three sites -- Dan Xay Ecotourism Resort, Vam Sat Ecotourism Resort and the Vietnam Bird’s Nest Exhibition Center. Two days later, a quarter specializing in gold and jewelry at Hoa Binh Market in District 5 came into being. Not long before, an oriental medicine quarter was opened, also in District 5. Businesses in the sector have expressed appreciation of the city’s effort to create new tourism products. However, these destinations would not be attractive if services for tourists there are not taken good care of. The oriental medicine quarter with a wide range of pharmaceutical products lacks stops and places for visitors to experience products. Similarly, tourism-related services are not … [Read more...] about HCMC tourism sector needs supporting services
Green financing for small businesses
The Global Green Growth Institute (GGGI), in co-operation with the Ministry of Planning and Investment’s Small- and Medium-sized Enterprise Development Fund (SMEDF), recently announced a draft handbook on its green growth priorities for small- and medium-sized enterprises (SMEs).Under the draft handbook, scheduled to be approved and issued in March 2018, for the first time in Vietnam, local and foreign-owned SMEs are entitled to low-interest loans for their “green” projects – at 5 per cent for a short-term loan and 7 per cent for a long-term loan throughout the loan period. The fund will first focus on three sector groups: agri-fishery-forestry; manufacturing and processing; and water supply and the management and treatment of solid waste and wastewater.Under the Law on Supporting SMEs adopted in June 2017, SMEs refer to firms with no more than 200 employees, maximum total capital of VND100 billion ($4.54 million), and total revenue of the preceding year not … [Read more...] about Green financing for small businesses
IFC joins ABBank to support lending to small businesses and women-owned SMEs
This is the first phase of an up to $150-million financing package IFC is arranging for An Binh Bank (ABBank). At least one third of the funding will go to support women-owned enterprises. With this funding, the bank aims to triple its SME portfolio and quadruple the size of its lending to women-owned SMEs over a five-year period. The outstanding SME portfolio is expected to reach more than $1 billion by 2021.As Vietnam’s economic growth continues, long-term funding for SMEs is going to become critical. While SMEs account for more than 98 per cent of the country’s businesses and 50 per cent of employment, only 30 per cent of the registered SMEs have access to formal financial services.Further, a new IFC study finds that it is even more difficult for women-owned SMEs to obtain bank loans, with an estimated credit gap of $1.2 billion per annum. “The much-needed syndicated funding from IFC and partner banks will help strengthen ABBank’s SME and … [Read more...] about IFC joins ABBank to support lending to small businesses and women-owned SMEs
Japanese firms discuss Vietnamese business obstacles
The four issues include foreign workers’ compulsory social insurance participation, waste treatment regulations in the draft Law on Environmental Protection, regulations on the import of used machinery and equipment, and the import of automobiles regulated by the Government’s Decree 116/2017/ND-CP.Chairman of the Japan Business Association in Vietnam (JBAV) Hiroshi Karashima suggested the Vietnamese Government revise regulations on compulsory social insurance for foreign employees.The purpose of the insurance scheme is to prevent employees from avoiding taking part in the social insurance, but this regulation forces many foreign workers to pay insurance premiums twice, in both their home country and in Vietnam, Hiroshi said.He called on the Government to allow exemptions for people that have paid compulsory insurance in Japan.The mandatory insurance participation reduces the attractiveness of the country as an investment destination, the chairman highlighted.In response to … [Read more...] about Japanese firms discuss Vietnamese business obstacles
Japanese firms discuss VN business obstacles
Japanese enterprises raised four problems they face while doing business in Viet Nam in a dialogue with the Advisory Council for Administrative Procedure Reform on Wednesday.The four issues include foreign workers’ compulsory social insurance participation, waste treatment regulations in the draft Law on Environmental Protection, regulations on the import of used machinery and equipment, and the import of automobiles regulated by the Government’s Decree 116/2017/ND-CP.Chairman of the Japan Business Association in Viet Nam (JBAV) Hiroshi Karashima suggested the Vietnamese Government revise regulations on compulsory social insurance for foreign employees.The purpose of the insurance scheme is to prevent employees from avoiding taking part in the social insurance, but this regulation forces many foreign workers to pay insurance premiums twice, in both their home country and in Viet Nam, Hiroshi said.He called on the Government to allow exemptions for people that have paid … [Read more...] about Japanese firms discuss VN business obstacles
BUSINESS IN BRIEF 12/12
Vietnam, Cambodia to develop cashew farming areaThe Vietnam Cashew Association (VINACAS) is working with the Cambodian Ministry of Agriculture, Forestry and Fisheries to establish a cashew farming area in Cambodia that is able to produce 1 million tonnes of material cashew annually.VINACAS President Nguyen Duc Thanh unveiled the information at the association’s seminar in HCM City on December 7 to seek ways to support foreign trade of cashew between 2018 and 2019.Addressing the event, Thanh said Vietnam has remained the world’s largest exporter of cashew and seen a robust growth of the cashew processing industry in recent years. However, the domestic supplies of cashew nuts have only satisfied about 20-35 percent of the firms’ demand for materials while imports of cashew face risks from quality control and payment, he noted.Cambodia is able to produce high-quality cashew nuts thanks to good varieties and favourable weather conditions, Thanh stated, adding that … [Read more...] about BUSINESS IN BRIEF 12/12
BUSINESS IN BRIEF 11/12
Investments in drugstore chains turn activeFPT Retail has recently confirmed its investment in the Long Chau drugstore chain, thus lengthening the list of tech retailers that are venturing into drugstore business.The Gioi Di Dong and Digiworld that have long been known as retailers of tech products have invested into drugstore chains as well.At a meeting on business operations at the Hochiminh Stock Exchange earlier this month, FPT Retail general director Nguyen Bach Diep said the company started injecting capital into Long Chau drugstores early this year on a pilot basis and would expand its investment in this sector next year.Revenue from drugstore business operations would be included in FPT Retail’s revenue as from 2019, Diep added.News about FPT Retail’s investment in the Long Chau drugstore chain broke early this year. But when reached by the media, the company said negotiations were ongoing and that there was no official information.Some of the well-known drugstore … [Read more...] about BUSINESS IN BRIEF 11/12
BUSINESS IN BRIEF 10/12
JETRO to host Invest Japan seminar in Ho Chi Minh CityJapan External Trade Organisation Ho Chi Minh City (JETRO) and the Ministry of Planning and Investment's Foreign Investment Agency will co-organise the Invest Japan seminar in Ho Chi Minh City on December 19.The seminar aims to introduce the strengths of the Japanese market, the advantages of establishing a branch in Japan, as well as JETRO’s free support activities for enterprises in Vietnam looking to invest or establish a business in Japan.The relationship between Japan and Vietnam has improved significantly over the past years. This January, Japanese Prime Minister Shinzo Abe visited Vietnam. In March, the Emperor and his Empress visited Vietnam for the first time, and in June, Vietnamese Prime Minister Nguyen Xuan Phuc visited Japan for the second time after taking office.In terms of the economy, the number of Japanese enterprises investing in Vietnam continues to increase, while trade relations are on the rise. A growing … [Read more...] about BUSINESS IN BRIEF 10/12