AGS（AGS JOINT STOCK COMPANY）

Besides the important role of the government in creating a favorable, transparent business environment, local enterprises should become more active and creative in preparing for more intensive global integration. During a recent conference held in Ho Chi Minh City on business competitiveness and free trade agreements, Dr. Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management, said that most small- and medium-sized enterprises in Vietnam had not considered wider global integration in their business strategies. Most foreign-invested companies in Vietnam, however, have developed strategies to prepare for the ASEAN Economic Community which takes effect by year-end. “The benefit of integration is finding out actual success or failure,…

Domestic beverage companies were urged to improve their distribution system to protect their domestic market shares amid anticipated rising competition pressure associated with intensive international integration. As a part of their efforts to implement the task of strengthening connections in the supply chain of Vietnamese products for sustainability, the Ministry of Industry and Trade on September 23 held a conference to connect producers and trading companies in the beverage industry in Hanoi. According to Le Thi Viet Nga, deputy director of the ministry’s Domestic Market Department, the domestic beverage industry was facing with the risk of narrowing production scales due to the rising competition from foreign rivals. Nga said the…

The construction of two sections of the trans-Asian railway, Sai Gon-Loc Ninh and Bien Hoa-Vung Tau, is estimated to cost 77.8 trillion VND (3.46 billion USD), reported the Nhan Dan newspaper. The Public-Private Partnership projects’ management board proposed to use official development assistance (ODA) sources for the two sections at a meeting between the Ministry of Transportation and the Japan International Cooperation Agency (JICA) on September 17. 　An investor has paid attention to the Bien Hoa-Vung Tau section and the company is studying the project’s size and measures on connectivity to get higher effectiveness and faster payback. 　During the meeting, the plan for the Dau Giay-Lien Khuong expressway was under discussion.…

The Ministry of Finance would speed up the collection of tax arrears in September as a part of the efforts to fulfil the budget collection goal amid plunging oil prices. The ministry said that this month tax departments planned to collect more than 50 percent of the total tax arrears from 600 companies whose names had been publicised under Document 9901/BTC-TCT on July 20. Checks would be conducted to continue to make public the names of companies with tax arrears, but this must be implemented with accuracy, the ministry said. Publicising the names of firms was considered a solution to increase tax collection. In Hanoi alone, the latest updates from…

The Vietnamese economy is projected to continue recovery in the four remaining months of the year, bolstered by Government efforts to maintain macro-economic stability against fluctuations in the world markets. 　According to the Ministry of Planning and Investment, the yuan depreciation and the plunging oil prices would not have an impact on the country’s growth which was now on track to finish at 6.4 percent this year, 0.2 percentage point higher than the Government’s target. 　The plunging oil prices would even help boost growth if Vietnam knew how to grasp the opportunities, the ministry said, and added that the country had solutions against the low oil prices to ensure budget…

Ho Chi Minh City’s consumer price index (CPI) in September decreased slightly by 0.47 percent from August and 0.99 percent against the same month last year, the municipal Statistics Office announced on September 22. Among the 11 main goods and service categories, six reported price falls with the sharpest decrease seen in the transport sector (3.48 percent), attributed to a drop in petrol prices during the month. The others included housing, electricity, water, fuel and construction materials (0.83 percent); restaurant and catering services (0.25 percent); post and telecommunications (0.25 percent); culture and entertainment (0.07 percent); and garments, footwear and hats (0.01 percent). On the contrary, the prices of other commodities…

An established national trademark is needed for Vietnamese rice products to build their image and gain shares on the global market.  Deputy Minister of Science and Technology Tran Viet Thanh made the statement during a workshop held in Hanoi on September 22, saying the trademark will reflect State policies devised based on comprehensive approaches to rice production and processing.  Currently, Vietnam boasts 4.1 million hectares of rice paddies, 53 percent of which are concentrated across the Mekong Delta. In 2014, the country exported 6.3 million tonnes of the 45 million tonnes of rice yields, becoming the world’s third largest rice exporter after India and Thailand.  However, according to the Department…

As Vietnamese agricultural export is facing challenges in Chinese market, businesses should focus on technological innovation, product quality improvement and price reductions in order to raise their competitive edge, said an official from the Vietnam Ministry of Agriculture and Rural Development (MARD).  Hoang Van Du, Deputy Director of the MARD Centre for Agricultural Trade Promotion, told a Vietnam News Agency correspondent on the fringes of the Vietnam-China trade conference in China’s Guangxi province that it is necessary for Vietnamese firms to pay more heed to studying the market and promoting trade.  He made the suggestion given agricultural exports to the neighbouring country are encountering a range of difficulties due to…

Analysts noted that the market’s heyday, when the growth rate was high at over 20 percent per annum, is over. Since 2013, the growth has slowed down to 5 percent. Manufacturers now compete fiercely with each other to obtain larger market shares. The ad pieces about instant noodle products rarely appear on TV and mass media these days. Some manufacturers advertised that their products are safer than others because their noodles are made of potato and green beans. Others say they do not use toxic colorings for their products. More recently, manufacturers rushed to market new products – noodles with eggs. Meanwhile, a new war of products with spicy and…

Foreigners buying or selling houses in Vietnam are required to carry out transactions through banks in the country and not in cash, the central bank has decreed. They can get mortgages if they meet banks’ requirements, the State Bank of Vietnam (SBV) said further in a document it has issued to guide the buying and selling of houses by foreign individuals and organisations. The tenor of the loans cannot exceed the time they live and work in Vietnam , while for organisations and other legal entities, it will not exceed their licence period. Amendments to the Housing Law that took effect on July 1 permit foreigners and overseas Vietnamese to…

HANOI – South Korea’s Samsung is looking to foray into new areas in Vietnam such as energy and insurance after it has reaped success in the electronics industry. At a meeting with Minister of Information and Communications Nguyen Bac Son on September 9, Samsung Vietnam general director Han Myoung-sup said after the success of Samsung Electronics, many other units of the group are seeking to invest in other sectors like energy and insurance. Han said the total workforce at the Samsung factories in the northern provinces of Bac Ninh and Thai Nguyen has exceeded 110,000. The company has also invested in a research and development center (R&D) in Hanoi with…

Chairman of the central city of Da Nang’s People’s Committee Huynh Ngoc Tho held a dialogue with Japanese companies on September 9 to address any arising problems. At the dialogue, Japanese enterprises raised difficulties in investing in Da Nang, mainly in infrastructure, land, the environment, administrative procedures, enterprise assistance, worker policies and training human resources training. They also suggested building a competitive business environment in the city. Tho answered questions raised by Japanese investors and promised to create the most favourable conditions for them and resolve problems quickly. He said Da Nang defines Japan as one of its important partners, noting that the dialogue will help the city improve its…

HCMC – Newly established businesses in the agricultural sector can have a lot of growth opportunities as demand for food is rising as a result of growing populations at home and abroad, according to experts at a forum in the Mekong Delta city of Can Tho last week.  Huynh Quang Vinh, deputy general director of An Giang Fruit-Vegetables & Foodstuff JSC, told a discussion at the Mekong Connect CEO Forum that the Mekong Delta is in dire need of solutions and equipment to preserve post-harvest farm produce. Meirav Eilon Shahar, Israeli Ambassador to Vietnam, said in a video clip shown at the discussion that domestic business startups are mainly in…

Poor logistics and transport infrastructure and customs hassles are the major reasons for Viet Nam’s inability to attract Japanese investment, a Japanese trade expert told a conference on investment promotion and logistics in Da Nang late last week. Yoshitaka Kurihara, senior advisor to the Japan External Trade Organisation (JETRO) ‘s HCM City Office, said: “Logistics is actually a key factor in investment. The slow modernisation of logistics services in Viet Nam has been a main reason for the decrease in investment flows.” Japanese investment fell from US$58 billion in 2013 to just $23 billion last year. “Chaotic road traffic, slowness of rail traffic, shortage of warehouse space and poor condition…

The Mekong Delta province of Tien Giang has granted investmentcertificates to two new projects worth US$17 million in total at the provincial industrial parks since the outset of this year. The province has also allowed four existing projects to add US$30 million in investment. Tien Giang is currently home to 73 projects worth US$1.37 billion, 47 of which are foreign direct investment ones valued at US$182.7 million.The results have been spurred by improvements in policies as well as administrative procedures, contributing to promoting an industrialized economic structure.According to Nguyen Thanh Liem, Deputy Head of the local Industrial Zones Authority, enterprises operating in the province’s four industrial zones My Tho, Tan Huong, Long Giang and Soai Rap Petroleum…

The country’s property market attracted 1.69 billion USD in foreign direct investment (FDI) for 15 projects in the first seven months of 2015, according to the Foreign Investment Agency.  This figure accounted for 19.3 percent of the total FDI capital of 6.92 billion USD.  Figures from the agency showed that the real estate sector took second place in attracting FDI capital during the period. In HCM City alone, four real estate FDI projects received an investment licence, with total registered capital of 1.31 million USD.  Experts forecast that FDI pouring into the property sector would see a surge by the year-end month thanks to the amended Law on Housing 2014…

JFE Steel, Japan’s second-biggest steelmaker, has announced it will invest 27 billion JPY (220 million USD) in a steelwork plant being constructed by the Formosa Plastics Group (China) in the central province of Ha Tinh. Speaking in a press conference in Tokyo, Shinichi Okada, Executive Vice President of the JFE Holdings Inc – JFE Steel’s parent, said that the investment is part of the corporation’s mid- to long-term growth strategy given Japan’s local demand is shrinking. JFE plans to purchase 5 percent stake in the plant’s operating company, Formosa Ha Tinh Steel (FHS), which is investing 10.5 billion USD in the first phase to build a rolling and metallurgy workshops…

Japan’s Creed Group, a real estate firm specialising in principal investment and property development, signed a 200 million USD contract on July 26 with An Gia Investment and officially becoming a player in Ho Chi Minh City’s property market.  Under the contract, the Creed Group will purchase shares of An Gia and in the company’s housing projects with the aim to provide “Japan quality” houses within the city.  An Gia Investment CEO Nguyen Ba Sang said the contract will offer the company a strong financial source to implement real estate projects.  An Gia plans to build 2,000 superior apartments each year towards having 10,000 units by 2020 with a total…

The Republic of Korea (RoK) will provide a 500,000 USD aid package for the Mekong Delta city of Can Tho to boost its hi-tech agriculture.  The capital will be used to build infrastructure and purchase modern machinery and equipment.  The announcement was made during a meeting between local authorities and a delegation of Korean economic consultants led by Hak Min-kim. Three companies from the RoK are set to invest in Can Tho, including YouCel major in bio-cellulose manufacturing, Nexgen Biogen specialised in canola extracting for cooking oil and cosmetics, and Nano Bio One operating in bio-nano technologies. At the meeting, Chairman of the municipal People’s Committee Le Hung Dung expressed…

The Japan International Cooperation Agency (JICA) has asked municipal authorities in Ho Chi Minh City for permission to take part in the Xuyen Tam Canal upgrade project, worth over 5.1 trillion VND (around 234.1 million USD), in Binh Thanh and Go Vap districts, Hanoi Moi Newspaper reported on July 17.  The project involves dredging the 6.21km main section of the Xuyen Tam Canal, which runs from Nhieu Loc-Thi Nghe Canal to Vam Thuat River, as well as dredging three other subsections, developing transport infrastructure and upgrading urban residential areas along the canal in Binh Thanh and Go Vap districts.  JICA proposed to invest 3.5 trillion VND (approximately 160.5 million USD)…

Deputy Prime Minister Hoang Trung Hai received Hajime Furuta, Japan’s Gifu prefecture governor, on July 14 during Furuta’s working visit to Vietnam.  At the meeting, Hai confirmed Vietnam treasures the relationship with Japan and considers deepening the comprehensive friendship and cooperation with Japan as one of its top external policy priorities.  The Deputy PM recommended the Gifu prefecture encourage its enterprises to invest in agriculture and the support industry.  The Deputy PM also thanked Furuta for his active role in promoting ties between the two countries.  Governor Furuta hoped the Vietnamese Government would create more favourable conditions to facilitate contact and cooperation between Gifu and Vietnamese companies.  There are currently…

VietNamNet Bridge – US investors are interested in at least four areas in Vietnam, said Mr. Pham Viet Muon, former Vice Chair of the Government Office, an organizer of Vietnam’s investment promotion conference in the US on July 1-5. http://english.vietnamnet.vn/fms/business/135793/what-do-us-investors-want-in-vietnam-.html(.vietnamnet.vn 2015年7月14 日)

The State Treasury of Vietnam has announced that it will issue 20-year Government bonds for the first time, between July 29 and December 31. According to a notice released by the State Treasury on June 30, the bonds will have a face value of 100,000 VND (4.6 USD) each. It is estimated that bonds worth 6-7 trillion VND (275-321 USD million) will be issued during the period. Those interested in the 20-year bond can register for direct purchases at the agency. The bonds will be issued the day the State Treasury gets money from the buyers. The Ministry of Finance and investors will negotiate the bond coupons at the time…

Over 1,100 new businesses have been set up so far this year with a total capital of 4.1 trillion VND (187.9 million USD) in the southern province of Dong Nai. Another 220 enterprise increased their registered capital to a combined 2.2 trillion VND, according to the provincial Department of Planning and Investment. The total new registered capital of 6.3 trillion VND represents 70 percent of the yearly target, the department said, adding that the businesses generated more jobs for people, contributing to socio-economic development. In the period, 60 businesses submitted documents to dissolve, a 66-percent increase from a year ago while 240 branches and offices submitted documents to stop or…

Vietnam’s gross domestic product (GDP) growth in the second quarter of this year reached a five year record, hitting 6.44 percent, reported Minister of Planning and Investment Bui Quang Vinh at the Government’s monthly meeting on June 29.  The result brought the country’s GDP growth for the first half of this year to 6.28 percent, much higher than the same period five years ago, he said.  According to the minister, the high GDP growth in the second quarter and the first six months of this year showed a economic recovery and development trend despite difficulties.  He revealed that the agro-forestry-fishery sector rose 2.36 percent, while industry-construction grew 9.09 percent and…

As of June 20, Japan had invested 37.7 billion USD in 2,661 projects in Vietnam, statistics from the Foreign Investment Department show. Of this the manufacturing/processing sector accounted for 31.3 billion USD and 1,357 projects. An amount of 1.66 billion USD has been invested in the property sector. Japanese investors have a presence in 49 of the country’s 63 cities and provinces. Thanh Hoa is the biggest beneficiary with 9.68 billion USD in 10 projects, accounting for more than a quarter of all Japanese investments. Hanoi is second with 4.1 billion USD in 661 projects, and Binh Duong third with 3.85 billion USD in 248 projects. The biggest Japanese projects…

Vietnam is among the emerging market having high transactional growth in merger and acquisition (M&A) activities, according to a latest report released by the Baker McKenzie law firm.  Stand-out markets for predicted high transactional growth in next five years include developed economies such as the Netherlands, the UK, Sweden, China, Hong Kong (China) and India, and emerging markets of Mexico, Egypt, and Vietnam, Singapore’s Business Times quoted the report as saying.  Globally, Baker McKenzie analysts predicted M&A deals to rise to 2.7 trillion USD in 2015 before accelerating to 3 trillion USD in 2016 and 3.4 trillion USD in 2017.  M&A activity relating to emerging markets will grow dramatically, rising…

A HCM City company has asked the Transport Ministry to approve a VND30 trillion (US$1.37 billion) project to build a expressway that will connect HCM City with a southern border province. The proposal was made by the Cuu Long Transport Infratructure Management Investment and Development in HCM City. The proposed expressway would link the city’s Thu Duc District with Moc Bai Border Gate in the southern Tay Ninh province that borders Cambodia. It will have 84.5 km in length and 15 metres wide for four lanes. The project is expected to be developed under the Build-Operate-Transfer (BOT) form in the two phases. About 55.5 km would be built in the…

Multi-industry conglomerate C.T Group will work with South Korea’s CJ Group to develop a large logistics network in Viet Nam. C.T Land, a subsidiary of the C.T Group, on Tuesday signed a memorandum of understanding with CJ GLS Co Ltd on co-operating with each other in exploiting existing logistics facilities and developing new ones. Existing facilities include workshops and warehouses in the southern province of Binh Duong, the northern province of Bac Ninh and the central city of Da Nang. The two companies said they would also consider the establishment of a joint-venture company to develop a large-scale logistics system in Viet Nam. The C.T Group has already completed building…