Tin Nghia boosts agricultural investments in Laos
Tin Nghia Corporation based in Dong Nai Province has planned to boost investments in Laos, especially in the agricultural sector, to serve projects it has invested in the neighboring country over the past time.
Quach Van Duc, general director of Tin Nghia, said that the potential project the firm might invest in Laos was to produce micro-organic fertilizers from peat in Sekong Province. This project will meet the fertilizer demand of the firm?s agricultural projects and of local people.
Besides, Tin Nghia will develop a 500-hectare material area for animal feed production, a coffee purchasing station and a fresh coffee processing plant in Champasak Province.
Tin Nghia has penetrated the Lao market since 2007 with agricultural projects, industrial park and tourism projects. On Laos? Bolaven Plateau, the firm has developed two Catimor and Arabica coffee farms, one covering 400 hectares and one covering some 170 hectares.
The firm has also invested in the Oriental Champa Resort scheduled for operation next year and a 463-hectare industrial park, the first industrial park in Champasak Province.
Review conference for 25-year FDI attraction set for Oct
The Ministry of Planning and Investment will hold a conference in the middle of October to review foreign direct investment (FDI) attraction in Vietnam over the last 25 years.
Prime Minister Nguyen Tan Dung has approved a proposal on convening this conference, assigning the planning ministry to coordinate with relevant agencies and localities to prepare for the event, according to the Government web portal.
A report of the planning ministry shows that from 1988 to 2011, the total registered capital of more than 13,400 valid FDI projects was US$195.9 billion, in which VND88.2 billion, or 43.2%, had been realized.
FDI has a positive impact on the socio-economic development of Vietnam. The contribution of FDI projects accounts for more than 50% of the total export turnover every year.
The FDI sector has created direct jobs for two million people and indirect ones for hundreds of thousands of others. According to the Foreign Investment Agency, in 2012, Vietnam focuses on luring FDI into the fields of infrastructure, green industry and joining the global production network and value chain.
* Dak Nong?s government on Wednesday organized an investment promotion conference with the participation of 200 local and foreign investors and leaders of 20 cities and provinces, says a Vietnam News Agency report.
At the event, leaders of Dak Nong introduced the potentials of the province and its preferential policy for investors. In addition, the province offered investors 92 projects to choose from, with a total capital demand of nearly VND10 trillion.
Participating enterprises suggested the provincial government should provide investors with more attractive incentives, such as assisting them in site clearance, borrowing capital and training laborers. Moreover, investors require simplified administrative procedures and sufficient and accurate information so that they can save time and money.
Dak Nong vice chairman Nguyen Bon told the conference that the province now focuses on traffic infrastructure development, from national highways to inter-village roads, and considers this the top priority in its strategy for socio-economic development.
The province government committed to create favorable conditions for investors to carry out their projects.
At the event on Wednesday, Dak Nong?s government also granted investment certificates to local and foreign investors and signed investment deals with businesses.
Shoe export contracts dry up
While footwear was the nation?s third leading export earner in the first half of the year, exporters remain concerned about the lack of new export orders beyond the third quarter, according to Viet Nam Leather and Footwear Association (Lefaso) chairman Nguyen Duc Thuan.
Exports of footwear products in the first six months of the year surged to US$3.4 billion, 25 per cent over the same period a year ago, with EU markets accounting for US$1.55 billion of the total and exports to the $806 million, the Kinh te & Do thi (Economy and Urban Affairs) reports.
However, Thuan said, only a few producers, including the Dong Hung, An Lac, Binh Tien, Truong Loi and Lien Phat companies, have sufficient contracts in place and have not had to cut production.
Representatives from footwear exporter Thuong Dinh said negotiations for export prices were problematic as customers, particularly in the EU, were seeking lower prices due to sagging consumer demand.
The EU, US and Japan were also imposing stricter requirements pertaining to quality and environmental and social responsibilities which have been difficult for domestic exporters to meet, Thuan said. Local producers, he noted, have also been slow in responding to changing export markets.
While continuing to enjoy the advantage of cheap labour costs, Viet Nam?s producers still had to import up to two-thirds of raw materials, reducing their competitiveness, Thuan said.
To meet the sector?s export target of $7.3 billion for the year, an increase of 12 per cent over last year, producers would need to maintain traditional customers and boost trade promotion efforts to find new customers in markets such as Latin America, he added.
He also urged producers to update the trademark image of Vietnamese footwear products, as well as rush to meet importers? regulations on quality and environmental and social responsibilities. He suggested the Government help exporters access to updated market information in order to deal with changing markets in a timely manner.
Lefaso has also recommended the Government restore the 275-day tax deferment on imported materials that was previously in place. The Government has recently required importers of raw materials to pay the import tax immediately upon customs clearance. Domestic exporters were also pushing the Government to do more for Viet Nam to enjoy the Generalised System of Preferences (GSP) so that it would be easier for them to access the US market.
Forum discusses food security
Food security was a global challenge that could only be overcome if all nations joined in to find solutions, a forum on food security heard here today.
Experts at the one-day forum agreed that ASEAN countries should do more to ensure food security in a bid to feed the region?s growing population, which is expected to hit 650 million by 2050.
Organised by the US-based DuPont company, the forum attracted representatives from world food-related organisations.
?As part of our effort to help feed the world, we commissioned the Economist Intelligence Unit (EIU) to develop a global food security index,? said DuPont East Asia president Carl Lukach.
He said this would be based on food security at the local level, country by country and globally.
?Using the index, governments, academics, NGOs, researchers, and farmer organisations can share a common language and chart a comprehensive food security programme,? he added.
?We are trying our best to make the index more comprehensive as it will take all of us working together to feed a growing world? said Pratibha Thaker, EIU?s regional director.
Viet Nam, one of the world?s leading rice exporters, will need 50.3 million tonnes of food including 32.1 million tonnes of rice in 2015 to ensure its food security.
The country, which ranks third in ASEAN and 55th globally on the food-security index, will need a minimum of 3.8 million hectares of land for rice cultivation in 2020, according to DuPont?s local managing director Farra Sirrgar.
According to the National Institute of Nutrition, more than 32 per cent of children in Viet Nam are malnourished, stunted or underweight and milk consumption per capita is low compared to other countries in the region.
Ministry eyes ways to stimulate production
A Ministry of Industry and Trade official yesterday suggested the Government force commercial banks to lower lending interest rates to below 12 per cent a year in order to help struggling enterprises through difficulties.
The proposal was made at a conference held by the ministry in Ha Noi yesterday to collect input on ways to help businesses resolve the current stagnancy in production. The Government has assigned the ministry to develop a plan to reduce inventories and support businesses in accessing credit.
The head of the ministry?s planning department, Nguyen Tien Vy, said the ministry has already asked the State Bank of Viet Nam to further reduce interest rates to a level commensurate with declining inflation rates. The initial plan has also proposed preferential credits to businesses operating in agriculture, exports, and support industries, as well as small-and medium-sized enterprises.
Vy said several businesses wanted capital to invest in expanding production, but banks were only offering interest rate reductions on short-term loans.
The ministry was also suggesting that firms in support industries receive preferential interest rates and more favourable conditions for mortgaging assets to secure loans. The State Bank of Viet Nam, Vy said, should also support lower interest rates for businesses in the agricultural sector, particularly in financing equipment purchases by farmers.
Viet Nam Chamber of Commerce and Industry general secretary Pham Thi Thu Hang complained that lending has historically only been available of large companies, while small businesses had to struggle to find capital.
Among other ideas discussed at the conference to stimulate production, Nguyen Quang Dung, head of the strategy department for petrol distributor Petrolimex, said the Government needed to concentrate on restructuring State-owned enterprises as well as maintaining a stable foreign exchange rate.
?The most important thing is to restructure State-owned enterprises and adjust industrial development strategy with an eye to better attracting FDI and developing a domestic market,? agreed Viet Nam Association of Foreign Invested Enterprises chairman Nguyen Mai.
Businesses have also not taken advantages of free trade agreements with big markets, Mai said.
Minister of Industry and Trade Vu Huy Hoang said that business difficulties were due to both the global economic downturn and shortcomings on the domestic market.
?Many business have also failed to focus on their core lines of business, and have ended up suffering losses in non-core investments,? Hoang said.
He said the ministry would push to accelerate projects using State budget funds as well as try to stimulate demand for some items of which there were high inventories.
?We do not have time to wait for solutions,? he said. ?Measures will be taken to provide for all businesses both domestic and foreign-invested, big or small, in production or trade.
?Businesses are also encouraged to be more proactive in finding their own solutions rather than waiting on support from the Government.?
In HCM City, executives from 200 companies and trade groups and provincial industry officials also gathered at a similar meeting on Wednesday.
Most agreed that a funds shortage and high interest rates were the biggest problems.
Quach To Dung, deputy director of the HCM City Department of Industry and Trade, said most companies were unable to borrow from banks because they cannot meet their conditions.
To resolve the problem, attendees suggested setting up a team to go into issues related to loans and interest rates.
They also proposed that the Government cut the rates from the current 15 per cent to 5-7 per cent.
In an action plan that the ministry was drafting to help industry clear inventories and revive production, they wanted it to incorporate measures to provide businesses short ? and medium-term loans for buying machinery and technologies.
The business executives listed several problems they faced ? like tax refunds, high import-export tariffs, and counterfeits ? and possible solutions for them.
Admitting the problems had to be addressed urgently, Minister of Industry and Trade Vu Huy Hoang promised that the solution would be incorporated in the action plan.
?The action plan aims to reduce inventories, help companies get loans, and reduce bankruptcies,? Hoang said, adding that it would help companies achieve stability and the year?s targets.
Foreign currency loan restrictions delayed
The State Bank of Viet Nam?s proposed tightening of lending in foreign currency is likely to be delayed until next year.
The central bank on March 8 issued a circular on lending by credit institutions which said they would provide foreign currency loans to import goods and services only if borrowers demonstrate they would have sufficient foreign currency to repay the loans.
But it is not clear how local businesses can establish that, Dau Tu newspaper reported.
Lenders can provide short term loans to pay for imported fuel and for manufacturing projects in prioritised sectors if it is expressly approved by the central bank.
Analysts said the new regulations would significantly reduce the number of people who can get foreign currency loans.
Many enterprises that require foreign currency would have to buy it from banks instead of borrowing like they do at present.
The new regulations are likely to affect trade at a time when exports are leading economic growth, they said.
Truong Van Phuoc, general director of Eximbank, said that the interest rate on foreign currency loans average 4.5 per cent per annum compared to an average of 15 per cent for dong.
Besides, exchange rates have been stable for a long time and the central bank has promised to contain their movement to not more than 3 per cent this year.
This means borrowing in dollars would help borrowers avoid risks, Phuoc said.
This also explained why many banks? foreign currency lending grew rapidly in the last six months, he added.
Borrowers included exporters and all sorts of companies, who all borrowed in dollars because of the very low interest rates.
Nguyen Tuan Anh, general director of the Ut Xi Seafood Processing Joint Stock Company, said the new foreign currency lending regulation forced exporters like his company to borrow in dong.
?Now, we have to borrow dong at high interest rates. This will raise our production costs to a much higher level, thus affecting our competitiveness with similar products from Thailand, India, and Bangladesh,? he said.
A spokesperson for a seafood export company in the southern province of An Giang also admitted that in 2011 his company was able to make profit mainly because of borrowing in dollars.
The new regulation would encourage agricultural exporters to import raw materials from abroad to process, thus affecting the country?s foreign currency situation, he warned.
But banks too benefit from lending in foreign currencies because the interest rate cap on foreign currency deposits now is 2 per cent.
With both borrowers and lenders benefiting, it is not surprising that they both want the central bank to delay application of the tightened regulations.
SBV Governor Nguyen Van Binh has promised that the circular would only take effect after the economy sees improvement, meaning it will not as long as the economy and export activities remain mired in difficulties.
Hyundai announces sole VN distributor
Hyundai Nam Viet has been chosen by the parent company in South Korea to be sole distributor in Viet Nam for commercial cars, multi-purpose vehicles and competed-built unit (CBU) from Jeon-Ju Company in South Korea.
Speaking at a customer meeting yesterday in Ha Noi, Min Wang Sil, deputy general director of Hyundai Motors, said Viet Nam imported between 1,500-3,000 cars and buses a year, making it one of the most dynamic markets in the region.
At the meeting, Hyundai Nam Viet and BIDV signed a comprehensive business agreement for BIDV to supply comprehensive banking products for Hyundai Nam Viet to meet expanding business and investments.
FPT posts H1 profits of $546m
FPT, the country?s giant software developer, posted VND11.5 trillion (US$546 million) in the first half of this year and a before-tax profit of VND1.2 trillion ($57 million), a slight increase over the same frame last year.
During this period, after-tax profit of the parent company rose 6 per cent to VND753 billion ($36 million) and the average earning per share was VND2,788 ($0.13).
Post, telecoms sector enjoys annual growth
Ha Noi?s post and telecoms sector has so far this year earned nearly VND8 trillion ($381 million) in revenue, a 30 per cent year-on-year increase.
The number of landline telephone subscribers in Ha Noi in the reviewed period was 1.1 million, 3 per cent down on the corresponding period last year. Meanwhile, the number of mobile-phone subscribers climbed to 12 million.
PM agrees to mark 25th year of FDI
Prime Minister Nguyen Tan Dung has agreed for the Ministry of Planning and Investment to hold a conference to mark 25 years of FDI to the country in October.
In that period, FDI projects have made a significant contribution to Viet Nam?s socio-economic development. About 50 per cent of Viet Nam?s export turnover came from FDI projects. FDI projects also help create jobs.
Kinh Do spits out loss in Q2
Confectionery giant Kinh Do Corp (KDC) posted a surprise loss of over VND39.2 billion (US$1.9 million) in the second quarter of this year, a poor performance compared to a profit of VND318 billion ($15.1 million) in the first three months.
First-half profits totalled VND278.5 billion ($13.3 million).
The loss was attributed to damage caused by the sale of its stake in domestic dairy producer Nutifood during the period. The company announced it had sold its remaining 2.7 million shares, or 18 per cent stake, in Nutifood.
Specific figures have not been disclosed.
Kinh Do Corp said after five years of investment, development strategies between KDC and Nutifood were no longer going in the same direction, and the company had decided to withdraw its investment.
In 2007, KDC bought 3.7 million shares in Nutifood, equivalent to a 24.8 per cent of the company?s total shares. However, in 2008, Nutifood posted a heavy loss of VND148 billion ($7 million) and total profit from 2009-11 reached just VND141 billion ($6.7 million). After that, KDC sold 1 million shares.
KDC?s shares have fallen for the past two days following the announcement, but closed yesterday unchanged at VND38,500 ($1.83).
In the second quarter, KDC?s revenue decreased 20.4 per cent from the first three months to VND408.3 billion ($19.4 million), lifting its first-half revenue to VND787 billion ($37.5 million), down 6.7 per cent year-on-year.
Revenue from financial operations rose 61 per cent to over VND32.1 billion ($1.5 million) from April-June, but financial costs also jumped to over VND66 billion ($3.1 million) during that period. At the end of June, KDC?s short-term debts stood at VND273 billion ($13 million).
Sugar makers to invest $5m in cane plantations
Sugar factories from southwestern Tay Ninh Province have spent over VND110 billion (US$5 million) to plant sugar cane in Cambodia?s Svay Rieng Province for the 201213 crop, said the Tay Ninh People?s Committee.
The Bien Hoa ? Tay Ninh and Bourbon-Tay Ninh sugar factories are in a joint venture with their Cambodian partners to plant 3,500 ha of sugar cane on plantations that will provide materials for these Vietnamese sugar factories.
Vietnamese sugar producers have planted the crops in Cambodia as sugar cane in Viet Nam has faced stiff competition for farmland from other crops such as cassava and rubber.
However, Vietnamese investors said poor infrastructure has made it difficult to transport sugar cane to Viet Nam.
Provincial authorities met last week to discuss measures to tackle these difficulties in a bid to promote trade and business ties between the two provinces in the time to come.
The sugar cane sector is a part of a co-operation agreement signed between the two provinces last September to create jobs and boost incomes for local people.
According to Viet Nam?s customs department, bilateral trade between the two countries reached nearly $1.5 billion in the first five months of this year, an increase of 30 per cent against the same period last year.
Vietnamese businesses have more than 110 investment projects totaling more than $2.4 billion in registered capital in Cambodia.
Of this capital, 40.7 percents was in agriculture and forestry, 34 per cent in electricity production and 11 per cent in the finance and banking sector.
Cambodia has become the second biggest receiver of investment from Vietnamese businesses.
Shipping firms face bankruptcy
Many maritime enterprises, especially shipping lines, face bankruptcy because of the world economic slowdown. This had led to a decline in goods being shipped, said the Viet Nam Maritime Administration.
?The situation has pushed the administration into trying to provide policies to support enterprises, settle economic disputes and ensure maritime security,? the administration?s vice head Do Hong Thai said.
According to administration statistics, in the first half of the year, 46.8 million tonnes of goods was transported by sea. This was 5.77 per cent higher than for the same period last year ? and 45.5 per cent of the year?s target.
Meanwhile, more than 52,000 visits were made to Vietnamese ports by Vietnamese and foreign ships. They carried a total of 145 million tonnes of goods, accounting for 46.9 per cent of this year?s target.
A shortage of capital was one of the main difficulties, interrupting the progress of some infrastructure projects, Thai said, adding that the administration was making efforts to ensure disbursement for approved projects.
He said the administration had taken action to adjust maritime fees and services to match reality and raise Viet Nam?s competitiveness to attract goods by sea.
Moreover, the administration was developing projects to diversify freight services as well as strategies to develop Vietnamese cargo boats.
Deputy Transport Minister Nguyen Van Cong said the administration needed to work out detailed policies to support maritime enterprises having difficulties during the economic slowdown.
He also urged the administration to pay more attention to studying and forecasting market demand.
The administration was asked to quickly finalise a project to attract investment from the private sector in maintaining marine infrastructures.
In June, Viet Nam had more than 1,680 ships, including about 450 international cargo vessels capable of carrying nearly two million tonnes of goods.
At present, in terms of loading capacity, Viet Nam ranks sixtieth out of the 152 flag states worldwide ? and fourth out of the 10 ASEAN members.
Provinces ordered to inspect coal mines
Deputy Prime Minister Hoang Trung Hai has ordered nine provinces and cities to increase inspections on coal mining in a bid to crackdown on illegal coal mines in the area.
The localities include Bac Giang, Bac Ninh, Hai Duong, Hai Phong, Nam Dinh, Nghe An, Quang Ninh, Thai Binh and Thanh Hoa.
Hai said the business licences of those committing serious violations will be revoked, especially for those making serious breaches in rules on labour safety and environmental protection or those illegally transporting, processing and trading coal.
The Ministry of Natural Resources and Environment has been assigned to quickly submit to the Government information on the location of coal seams to help in the issue of coal mining licences by provincial People?s Committees.
In addition, Hai also required the Ministry of Industry and Trade to add coal to the list of commodities for trading under special terms and conditions.
Statistics from northern Quang Ninh Province?s Police Department recorded 520 illegal coal mines that have had their operations suspended, while police officers also seized about 20,000 tonnes of coal and fined 296 suspects, with these fines totalling over VND1 billion (US$48,000).
City?s foreign investment falls in first seven months
The southern economic hub attracted approximately US$820 million in foreign direct investment during the first seven months of this year, down by 57 per cent year-on-year, according to the municipal Statistics Office.
Up to 214 new foreign-invested projects, worth over $292 million, were granted licences in the city while 65 operating projects were allowed to raise capital by $528 million during the period.
Singapore was the city?s leading source of foreign direct investment (FDI) with 38 projects capitalised at $118 million, accounting for 40 per cent of the total FDI registered in the city.
Japan ranked second with 46 projects valued at $83 million, followed by South Korea, Malaysia, France and the British Virgin Islands.
The heath sector took the lead in terms of investment capital during the period, gobbling up $83.9 million or 28.6 per cent of total FDI. It was followed by industry and services, attracting $83 million and $72.5 million respectively, while the construction sector drew $20 million.
To date, HCM City is home to 4,275 foreign-invested projects worth a total of $30.8 billion.
The city was focusing on achieving the ambitious target of attracting $2.5 billion in FDI for the whole year mainly through the finance and banking, insurance, transport and logistics, import-export services, and telecommunication technology industries, the municipal Department of Planning and Investment deputy director Lu Thanh Phong told the Vietnam Investment Review.
It would also pay attention to hi-tech industries and sectors of high added value such as electronic engineering, information technology, pharmaceutical chemicals, rubber, food processing and bio-technology industries, he added.
Energy saving technologies and supporting industries would be other areas of focus, he said.
Apart from Japan, the city has also been seeking FDI from the US, the EU, north-east Asian countries, Germany, Belgium and Holland, he said.
PM urges progress at international port
Prime Minister Nguyen Tan Dung has asked Hai Phong northern City?s authorities and other agencies to make sure that work on Lach Huyen international port is finished on schedule in 2016.
Dung was speaking at a meeting with Hai Phong leaders during a visit to the site of the port in Lach Huyen, Cat Hai District, yesterday.
The first phase of the project will cost a total of more than VND22 trillion (US$1 billion. It means the completion of two wharves capable of handling 100,000 dead-weight tonne (DWT) vessels, breakwaters, roads, and electricity and water infrastructure.
The municipal leaders said the city had told Cat Hai district to focus on site clearance to ensure progress was made.
Dung praised the city?s comprehensive socio-economic development results in the first half of the year, despite difficulties in domestic and world economies.
He advised the city to give priority to industrial development while helping businesses, especially those making construction materials or were involved in shipbuilding, to expand their markets and access capital sources.
He encouraged it to make the most of its advantages by developing industrial and economic zones as well as speeding up infrastructure development to lure investment projects with high technological content.
The Government leader asked ministries and agencies to take measures to help boost the city?s development in the remaining months of the year, focusing on infrastructure projects such as the Ha Noi-Hai Phong Expressway and a project to dredge Hai Phong Port.
According to the municipal People?s Committee, in the first six months of the year, the city recorded a GDP growth of 6.81 per cent, 1.55 times higher than the national rate.
Vinacomin asks to cut export duties to 10%
The Vietnam National Coal and Mineral Industries Holding Corporation is seeking PM approval to cut coal export taxes to 10% to ease its difficulties.
The Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin) also said that the industry?s outlook is quite gloomy and they would not make any profits in 2012.
According to the corporation, both sale and coal prices have dropped fast compared to the same period in 2011.
In June, coal sale stood at only 43% of the annual plan and just 87% of last year?s rate. Revenues stood at 42% of the annual plan and fell 9% compared to previous year. Meanwhile their mineral sale also fell below expectations.
In addition to domestic woes, coal exports also had to compete fiercely with supply exceeding demand.
As of June, their inventory stood at 8.5 million tonnes, pushing up borrowing costs. Furthermore, the rise in environmental fees and taxes have increased manufacturing costs by VND 2.2 trillion (USD105 million).
Another factor that make Vinacomin?s revenue fall is the cheap price they sell coal to the electricity sector, they said.
From July 1, when electricity prices increased, coal price also went up by 10-11.5% but Vinacomin said they lost VND8.5 trillion (USD407 million) because their prices were still cheaper than market prices.
Vinacomin?s revenue also dropped VND4 trillion due to the fall in coal export prices. Only 25,000 tonnes were sold and they have no new contracts as of July 15.
According to Vinacomin, the 20% tax rate is too high during a period where world coal price have rapidly fallen. Since they can?t cover their expenses, the corporation is reducing export volumes. ?The government will not be able to collect taxes due to small export volume.? they said and asked to lower the export tax to 10%.
Last year, Vu Huy Hoang, Minister of Industry and Trade said that Vietnam might have to import coal from 2015. The government ordered related agencies research coal imports from Australia, Indonesia and Russia.
Huge urban area projects abandoned in Me Linh
Dozens of projects in the expected ?super urban area? of Me Linh District have been left abandoned for almost four years.
After securing capital, many project owners just neglected and abandoned their projects.
According to the urban planning of Hanoi period 2020-2050, Me Linh is expected to be the capital?s central urban area. The planning attracted many investors to Me Linh, including HUD, Cienco 5 and Vinaconex.
The Me Linh site Clearance Board said that there were nearly 50 housing projects in their 16 communes. Four communes, Tien Phong, Trang Viet, Dai Thanh and Thanh Lam, along with Quang Minh Town, have over 20 small and big projects, such as Cienco 5, Diamond Park New, River Land.
Most have been abandoned since 2008 or 2009 even though ground sites have been cleared.
The urban area project Minh Duc, which has total area of 17.1 hectares, still has not completed the site clearance work. But they continue to advertise in the real estate market.
SOEs need to stick to what they do best
Vietnam?s state-owned corporations and groups need to pull back from non-core investments by 2015 to assist their restructuring.
According to Minister of Finance (MoF) Vuong Dinh Hue, non-core investments have weakened enterprises? powers, especially those that have invested in the risky sectors such as securities, insurance, real estate and banking, although most have maintained an acceptable rate of 30 per cent lower than their charter capital.
A MoF source said state-owned enterprises? investments in those risky sectors had been surging from VND6.114 trillion ($293.94 million) in 2006, to VND14.441 trillion ($694.28 million) in 2007 and to VND19.840 trillion ($953.85 million) in 2008.
Thanks to Decree 09/2009/ND-CP that restricted non-core investments, the figure declined to VND14.991 trillion ($720.72 million) in 2009. However, this figure soared up to VND21.814 trillion ($1.1 billion) in 2010.
The abnormal hike in state-owned enterprises? non-core investments in 2010 resulted in increasing their charter capital by payment dividends by shares, reward shares and giving existing shareholders the right to purchase additional shares, Hue explained. And thus, it made those state-owned non-core investments increase, but not exceeding the 30 per cent rate.
State-owned corporations and groups have been requested to withdraw from their non-core investments by 2015.
Deputy head of the National Assembly?s Economic Committee Nguyen Duc Kien said each state-owned enterprise must withdrew based on ensuring transparency and state-capital and assets.
In terms of securities, the decision to withdraw from non-core investments is not easy at all due to profits-investments ratio of non-core activities is higher compared with state-owned corporations and groups? core business.
For example, Vinalines?s profits-investments ratio of its financial activities was 8.63 per cent, while shipping building made no profits. Vinacomin and Vietnam Cement Industry Corporation also made profits in their financial investments.
??State-owned enterprises should take the initiative to withdraw depending on financial markets in order to ensure investment capital,?? Kien said.
Source: http://talkvietnam.com/2012/07/business-in-brief-307/
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When my husband and I realized the incredible benefits of a real food diet and made the commitment to eat a real food diet, one of the first things we discussed was how to handle get-togethers with family and friends. ?It was difficult to find a place in our diet for processed, packaged foods and items that most American think are healthy such as meats from the grocery store, vegetable oils and improperly prepared grain products. ?Still, the last thing we wanted to do was be "the family with the special diet" 
David Paul Morris/Bloomberg NewsJohn Donahoe has led a revival of eBay. ?Our multiyear effort is paying off,? he said. Remember Myspace, Friendster, eToys, Webvan, Urban Fetch, Pets.com? Like meteors, they burned with dazzling brilliance before turning shareholder dollars to ash. EBay, Yahoo and AOL, the dominant Internet triumvirate circa 2004, seemed destined for a similar fate. The conventional wisdom has been that once decline sets in at an Internet company, it?s irreversible. 
But that was before eBay?s latest earnings surprise, which sent its stock soaring and had analysts scrambling to raise their projections. ?Can Internet companies ever turn around? The answer has been no,? Ken Sena, Internet analyst at Evercore, told me this week. ?But now, there?s eBay. The answer may turn out to be yes.? If so, eBay?s success has big implications for struggling companies like Yahoo and AOL, not to mention more recent sensations that have already lost some luster, like Zynga, Groupon and even Facebook, whose shares tumbled this week after its first earnings report as a public company disappointed investors. ?EBay has demonstrated that it?s possible to turn the corner even against long odds,? said David Spitz, president and chief operating officer of ChannelAdvisor, an e-commerce consulting company. EBay shares hit a peak of over $58 in 2004 and made its chief executive, Meg Whitman, a Silicon Valley celebrity. But by November 2007, when she stepped down to enter politics, the telltale signs of decline had set in. Its stock was slumping. Its dominant online auction business had matured, and growth had slowed. Sellers complained about higher fees and poor support. That year, eBay wrote off $1.4 billion on its poorly conceived $2.5 billion acquisition of the calling service Skype, recording its first loss as a public company. Analysts worried that eBay had lost its quirky soul, and was abandoning the flea market auction model that had made it distinctive and dominant in online auctions. By early 2009, its stock was barely over $10, down over 80 percent from its peak. Ms. Whitman was succeeded by a former Bain & Company managing director, John Donahoe. ?One of the unique things about the Internet is a company can be a white-hot success and become a global brand and reach global scale in just a few years ? that?s the good news,? he told me this week. ?But then somebody can turn around and do it to you. There?s constant disruption. One of the first things I had to do here was face reality. EBay was getting disrupted.? Little more than four years after taking charge, a buoyant Mr. Donahoe sounded like the chief executive of a surging start-up when he announced eBay?s latest results on July 18. So thoroughly has eBay been transformed that he didn?t even mention its traditional auction business. ?Our multiyear effort is paying off,? he said. Profit more than doubled and revenue jumped 23 percent. ?EBay is revitalized. We believe the best is yet to come.? In a stock market struggling with recession fears and the European debt crisis, eBay stock this week hit a six-year high. How has eBay done it when so many others have failed? Excitement about eBay?s prospects has little to do with its traditional auction business, or even its core e-commerce operations, although its marketplace division posted solid results and had its best quarter since 2006, the company said. Most of its growth came from mobile retailing and its PayPal online payments division, a business it acquired in 2002 for what now looks like a bargain $1.5 billion. As consumers embrace shopping on their smartphones, ?mobile continues to be a game-changer,? Mr. Donahoe said. He noted that 90 million users had downloaded eBay?s mobile app and that 600,000 customers made their first mobile purchase during the most recent quarter. ?A woman?s handbag is purchased on eBay mobile every 30 seconds,? he said. ?Mobile is revolutionizing how people shop and pay.? ?It?s hard to think of many companies that benefit from mobile,? Mr. Sena said. ?Usually it means more competition. But clearly, eBay is one of them. EBay is offering a one-click payment solution. You don?t have to type in a credit card number or PIN. It?s just one click on your mobile phone.? Mr. Spitz said he was recently stopped at a traffic light and the sun was bothering his eyes. By the time the light turned green, he had used his phone to order and pay for sunglasses. ?This is what commerce anytime, anywhere means,? he said. ?It?s here.?
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Public release date: 27-Jul-2012
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Most direct response marketing businesses depend on a call center to process customer orders. For these types of transactions (card-not-present), a pc based credit card processing solution is necessary.
