Business

HoREA wants easy credit for property sector continued The HCMC Real Estate Association (HoREA) has proposed the State Bank of Vietnam delay revising Circular 36 in a way that tightens lending to the real estate sector, saying that credit tightening would cause adverse impact. HoREA said the property market has just recovered from the crisis over the past two years and that the market would be hard hit if restrictions on property loans are introduced. In a draft document issued by the State Bank of Vietnam and passed around for comment at financial institutions, the risk index of receivable lending for real estate and securities might be raised from 150%, as stipulated in Circular 36, to 250%. Besides, the maximum ratio of short-term funds used for medium and long-term loans should be adjusted from 60% to 40%. According to HoREA, the strong rise in bank lending to the property sector in recent times is normal because the market has recovered since late 2013, after years of stagnation. … [Read more...] about BUSINESS IN BRIEF 2/3

VBL Vietnam not to sell Laru beer brand to China Vietnam Brewery Limited (VBL) would neither change its join venture member nor sell Laru beer brand to China, said VBL managing director Leo Evers yesterday. Reporting to Secretary of the Da Nang City Party Committee Nguyen Xuan Anh, Leo Evers affirmed that the group was working to expand Laru market share. He has rejected recent rumors of the deal, adding that it had greatly affected VBL's production and trading. VBL Da Nang is a member of VBL Vietnam which is a joint venture between Singaporean Asia Pacific Breweries Ltd (APB) and Vietnamese Saigon Trading Group (Satra). Last year the company contributed nearly VND1.7 trillion (US$76 million) to the city's budget, said Mr. Xuan Anh. Secretary Nguyen Xuan Anh yesterday visited and launched New Year production and construction at some locations in the central city of Da Nang including Children Cultural House, Cat Tien Sa Seaport and VBL Da Nang. Work starts on Nui Coc Lake tourism … [Read more...] about BUSINESS IN BRIEF 19/2

Vietnam fruit has limited access to foreign marketsAlthough Vietnam has quickly completed procedures and paperwork relating to quarantine and other issues to pave the way for more fruit to go abroad, a number of importing countries remain hesitant to open up their markets. Hoang Trung, deputy director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said at a recent meeting with trade counselors in Hanoi that Vietnam has managed to ship litchi to Australia, which has high quality requirements for fresh agricultural products. Vietnam has completed all required procedures for Australia to open its market to other products such as mango and thanh long (dragon fruit). All technical issues for mango have been solved and Vietnam is waiting for the Australian side to come to inspect irradiation facilities before allowing the fruit to enter the country. But Australia has no concrete plan on the matter, Trung said. Vietnamese dragon fruit, longan and … [Read more...] about BUSINESS IN BRIEF 28/2

Vinatex to build second factory in Kien Giang The Vietnam Textile and Garment Group (Vinatex) will invest 210 billion VND (91 million USD) into building its second factory in the Mekong Delta province of Kien Giang. Construction of the 3.7 ha factory in An Bien district will start on March 14 and is expected to be completed in the first quarter of 2017. The factory will have 32 production lines with a total capacity of 12 million products per year, bringing in annual revenue of about 850 billion VND (nearly 37 million USD). It is expected to generate jobs for about 2,000 people and contribute about 5 billion VND (218,000 USD) to the State budget per year. Last year, the group put into operation its first factory in Go Quao district, employing 2,000 locals. So far, Vinatex and its affiliates have invested in 11 plants in the Mekong Delta region, creating 23,000 jobs. Short-term deposits hit 5.5 percent cap chasing long-term highs After pushing long-term rates to a two-year high of 8.38 … [Read more...] about BUSINESS IN BRIEF 12/3

HCM City aims to attract Finnish investment Vice chairman of the HCM City People's Committee Lê Văn Khoa said he hoped to strengthen co-operation with Finland's investors, particularly in technology during a meeting on Thursday with Lenita Toivakka, Finland's Minister for Foreign Trade and Development in HCM City. The city is investing heavily in road infrastructure and different kinds of public transport, Khoa said at a reception held for Minister Lenita Toivakka and a Finnish business delegation. Information technology, communications, education, energy, environment and waste-water treatment are all areas in which HCM City and Finland will cooperate. In HCM City, Finland has invested in six projects worth a total of US$2 million, mostly in the information and communications, science and technology and processing industry. The figure is moderate compared to the total of US$48 billion in foreign direct investment that has poured into the city, he said. Toivakka suggested that the … [Read more...] about BUSINESS IN BRIEF 13/3