Farmers in roadblocks to reach subsidized credit

4/17/2009



A farmer harvests shrimp in his farm in Nam Can District in the Mekong Delta province of Ca Mau. Farmers have difficult access to government-subsidized loans designed to stimulate the slowing economy - Photo: TTXVN Tran Van Tao, a shrimp farmer in My Tu District in Soc Trang Province, was a lucky borrower of the local Bank for Agriculture and Rural Development (Agribank) right at the moment the Government’s subsidized lending policy took effect under the second stimulus package. Tao easily completed procedures for the credit at Agribank Soc Trang as he has paid old debts and is a prestigious customer of the bank.
However, other farmers are not as fortune as Tao. Besides small and medium enterprises, farmers are facing obstacles to the subsidized lending program due to many requirements of credit institutions.
Commercial banks in Soc Trang Province through last month loaned over VND2.8 trillion to over 1,000 enterprises, farmers, farm owners and individuals, according to a report of the provincial authorities. The largest disbursement was recorded at Agribank Soc Trang at some VND1 trillion while the local Bank for Investment and Development offered the second largest disbursement of over VND200 billion.
Though only just over 700 local farmers have accessed subsidized loans to date, Soc Trang Province is still seen to have the fastest disbursement rate among localities in the Mekong Delta and nationwide. However, the sum is too modest to serve a province rich in agricultural potential with 40,000 hectares of shrimp farming area and thousands of salt farming families. Farmer Tao is actually a rare circumstance in the province to enjoy the subsidized interest rate.
Like any enterprise, farmers at first are asked to pay old debts before asking for new credits at any commercial bank. Therefore, statistics of the Department of Agriculture and Rural Development in Dong Thap Province show that only 40% of households have settled all old debts and can meet the first requirement of banks. Meanwhile, borrowers who really need money due to last year’s losses or failed crops are rejected by creditors.
If the debts are rescheduled following the Government’s loan extension program, farmers then are asked to submit a qualified production or business plan, says Duong Quoc Nghia, chairman of the provincial Aquaculture Association. Such a requirement is certainly not simple as farmers have to indicate buyers of their products, selling places and underwrite contracts with enterprises.
Many fish farmers in the Mekong Delta say that they have paid old debts at banks but failed to make a business plan because fish farms are required to have certificates from local authorities and trading contracts with enterprises. In fact, only some provinces have expanded the regulation on certificates to local farmers as the Ministry of Agriculture and Rural Development issued the regulation last year.
Just one or two out of every ten farmers in An Giang Province can sign a contract with enterprises, says an official of the provincial agricultural department. However, enterprises on the contracts only promise to buy fish at market prices after harvest due to disputes with farmers and among farmers themselves while commercial banks always ask farmers to list buying prices of enterprises.
The requirement on underwriting contracts is really a big challenge for farmers. An example is a fish breeder in the province who failed to get a subsidized loan because he could not say who would buy his young fish after harvest.
In addition, creditors ask farmers to submit input material purchasing receipts while the farmers are quite used to a “no-receipt” trading habit. Others cannot even get a receipt as they do not buy materials from companies but from individuals.
The Government’s subsidized interest rate policy took effect on February 1 but by that time many farmers had already secured loans without the benefit of the subsidized interest in order to prepare for the winter-spring crop in early 2009. As a result, they may have to sell their products early to re-pay the loans and follow other procedures for subsidized credits. And of course, both farmers and banks will have to spend more time and effort for the job.
Concerning complicated procedures that prevent farmers from reaching subsidized interest, the State Bank of Vietnam early this month sent a document to credit institutions outlining a simplification of the process that will help farmers who lack receipts for their input material purchases.
The Saigon Times Daily

3G technology seen usher in new telecom era



Visitors are experiencing a mobile phone compatible with 3G technology at the 12th Vietnam Telecomp-Electronics 2008 - Photo: Kien Nam Nguyen Lan Thanh, a logistic manager of Bluescope Steel Factory in Ba Ria Vung Tau Province who is very busy with customers’ relations, feels sorry when she has just bought a new mobile phone of the make Nokia Supernova 7610 at VND4.2 million. Though the new phone is of good quality with all functions, she says, the handheld device will not allow for 3G communications when the new technology is introduced.
Thanh’s regret is understandable, as she had acquired the new cell phone just days before four telecom providers obtained the third-generation network (3G) licenses last week. The early winners are the military-run Viettel, MobiFone and VinaPhone under the Vietnam Post and Communication Group and the consortium between EVN Telecom and Hanoi Telecom.
“With the new mobile phone, I still can solve my job quickly with various functions on the device. However, the mobile phone cannot match with the 3G technology which can offer various added values,” Thanh says.
“It means that I should buy a new one which can accommodate 3G technology that will be deployed soon,” she explains, adding that “I’m eagerly looking for the time when 3G technology is available to use new value-added services such as videophone, on-line video streaming and high-speed internet.”
Thanh is not the only person eager with the 3G technology, which now is becoming a very hot topic around the country when mobile users, telecom providers, industry insiders and the Government are waiting for what 3G brings about.
Industry insiders say the most precious advantage of 3G is that it makes the telecom infrastructure more comprehensive via wide broadband, enable the digital content industry to develop, and help narrow the digital gaps between rural and urban areas.
“Thus, 3G means it enhances Vietnam’s competitive index in terms of telecommunications compared to other countries in the region,” says Le Nam Thang, deputy minister of Information and Communication.
Strong commitment
The four mobile carriers that have just obtained the 3G licenses has committed to quickly introduce the technology into the market. They have pledged to invest nearly US$2 billion for 3G technology deployment within the first three years.
Under the ministry’s requirement, the winners will have three months to make deposits and prepare finance to carry out their commitments. After that, the ministry will formally grant licenses for 3G network establishment with a term of 15 years. The total deposits alone by the four telcos is estimated at VND8.1 trillion, or over US$450 million.
The 3G licenses are granted according to the International Mobile Telecommunications-2000 (IMT-2000) standard and 1900-2200 MHZ frequency. It is the global standard for third-generation (3G) wireless communications, defined by a set of interdependent International Telecom Union’s recommendations.
IMT-2000 provides a framework for worldwide wireless access by linking the diverse systems of terrestrial and/or satellite-based networks. It will exploit the potential synergy between digital mobile telecommunications technologies and systems for fixed and mobile wireless access systems.
Hoang Son, director of Viettel Telecom, confidently says Viettel will officially launch 3G services within the next nine months which can cover 86.5% of the country’s total population with 5.000 base transceiver stations (BTS).
“We commit to invest US$800 million in the first three years. In our long-term plan, Viettel will spend US$1.5-1.8 billion within 15 years. In addition, 16,000 current BTS will be upgraded for the 3G technology,” Son says.
According to Son, Viettel applies High Speed Packer Access which allows the Internet speed rate at 2Mbps.Meanwhile, other competitors like MobiFone also commits to supply 3G coverage at 100% of the population in 63 cities and provinces nationwide in the first three months upon the receipt of the 3G license last week.
A representative of MobiFone explains that MobiFone will upgrade its current 2G infrastructure for accommodating the 3G technology. It will help clients to approach 3G service in a short term and save expenditure, he says.
Similarly, the consortium between EVN Telecom and Hanoi Telecom has made a strong commitment when Dinh The Phuc, director of EVN Telecom says that the two parties involved have plans to invest VND6 trillion in the first three years of 3G deployment.
Phuc reveals that his company has inked many deals with digital content suppliers, and digital content service is expected to account for 5-6% of their 3G service revenue in the coming years.
According to Phuc, digital content service now is taking a small piece in EVN Telecom’s turnover. With the 3G license, Phuc hopes it can generate more profits to EVN and Hanoi telecoms as well as to enhance their competitiveness.
Mobile carriers optimistically say that in the next three years the number of mobile users will increase from 50% of the population to some 80% in the next couple of years and to 100% in the next 15 years.
Rocky road ahead
Although 3G mobile carriers pin big hopes on 3G, many customers and experts express their suspicions about the benefits of the new technology.
Despite eagerness with the 3G technology, Thanh of Bluescope Steel still shows her worry about the high cost of service and expensive equipment.
She says that the mobile service charge will likely be more expensive than before because the 3G service offers various added values. Additionally, she is also worried about the high price of handheld devices compatible with the new technology.
However, in a talk about 3G service with Tuoi Tre, deputy minister Le Nam Thang says it is likely that the 3G charge will not be higher than the current 2G technology fee because telecom providers will save on the investment cost by upgrading their 2G infrastructures.
According to Thang, a price war may emerge soon among 3G telecom providers to lure customers for 3G development, and therefore, the charges will be competitive.
Pham Tien Thinh, who is a former strategy and business development director of Qualcomm in Pacific Ocean and South East Asia region, says on Thoi bao Vi tinh Sai Gon, an edition of Saigon Times Group, that 3G development in rural areas will not be easy because poor rural people’s demands are mainly limited to telephony services. The 3G deployment in the countryside will be slower than expected because residents have poor awareness about what 3G could bring.
“They prefer to use mobile phone for calling rather than surfing the Internet, downloading music or video,” Thinh explains.
The Saigon Times Daily

De Nhat Hotel reaches high revenue in 2008


HCMC – The four-star De Nhat (First) Hotel in HCMC has maintained 22% annual growth over the last five years and reached nearly VND167 billion in revenue last year, said hotel director Huynh Van Phat.
Last year’s profit was twice 2004’s profit. The hotel targets VND184 billion in revenue this year and to contribute to its parent company, Saigontourist Holding Co., around VND200 billion till 2010, Phat added.
De Nhat Hotel was constructed in 1969 and launched into operation one year later. The hotel, after several renovations, has 108 rooms, five meeting halls, four restaurants with 2,000 seats, a video game club, business centers and tennis courts.
The hotel has applied ISO 14001 environmental management standards since 2003 and received the ASEAN Green Hotel prize in 2007 for achievements in natural resources, energy and environment protection. This year, De Nhat plans to upgrade its infrastructure and develop its cuisine and wedding services.
De Nhat Hotel was awarded a 2nd class Labor Medal by the State President on Wednesday. Phat also received 3rd class Labor Medal.

Delta Air Lines debuts in Vietnam


HCMC - Delta Air Lines has marked its official entry into Vietnam’s growing aviation market via the opening last week of an office in HCMC.
The Vietnam office is part of Delta’s preparations for launching daily service to and from HCMC on June 1 this year in a strategy for expansion in Asia.
Establishing an office in Vietnam will enable the airline to provide first-hand service to originating passengers connecting through Tokyo to the U.S., said Brian Swain, managing director of Delta Air Lines in Asia.
Swain told reporters in HCMC last Friday that he believed the service to HCMC would make profit for Delta in the very challenging times for global airlines, which are forecast to lose US$4.7 billion this year. He said Delta expected business growth in certain markets despite the global economic recession.
“Even when we are shrinking, we are still able to grow in certain destinations such as some European markets, African market and Asia Pacific including HCMC…,” Swain said. He added Delta decided to fly to HCMC after carefully considering the current situation and expectations for future.
General Statistic Office’s figures showed American visitors to Vietnam in the first quarter of this year grew 17.2% year-on-year to nearly 121,000, though the international financial crisis had dealt a blow to consumers stateside.
The U.S. was among the few markets from which Vietnam attracted more visitors in the January-March period, when Vietnam welcomed less than one million international tourists, down 16.1% year-on-year.
Vietnam was an emerging market in Southeast Asia and an attractive destination for the U.S. travelers, said Sarathool Monthienvichienchai, general manager of Northwest Airlines – a wholly-owned subsidiary of Delta for Thailand, Vietnam and Nepal.
Swain told the Daily at the press conference that Delta’s plan to fly to HCMC was proceeding as scheduled. “Now is the right time for us to commence service to HCMC,” he said, referring to the aforesaid factors.
Swain said bookings for Delta’s flights were now available at the Vietnam office as well as the website of Delta and Northwest. He said fares for the service were “very competitive” but declined to give details.
As scheduled, Northwest’s inaugural flight will arrive at Tan Son Nhat International Airport at 11:10 p.m. on June 1 and depart at 6:15 a.m. on the next day.
Northwest will use Boeing 757-200s for the service between HCMC and the U.S. via Japan’s Narita International Airport.
Sarathool said guests from Northwest aircraft would board connecting flights in Tokyo to such U.S. gateways as Los Angeles, Atlanta, Minneapolis-St. Paul, Detroit, Portland, Seattle and San Francisco.
Sarathool said passengers would be able to make easy connection to and from the U.S. gateways. Northwest has not been granted the fifth freedom to transport passengers on the HCMC-Tokyo sector, he said.
Vo Huy Cuong, director of the Air Transport Department of the Civil Aviation Administration of Vietnam, said Tokyo would be a technical stop for Northwest, where this carrier will not let the passengers departing from HCMC leave, as well as pick up more passengers there.
Swain said Delta’s ability to take and disembark passengers in Tokyo would depend on negotiations between government agencies of the U.S. and Vietnam. Despite this, he is pinning high hopes on the upcoming service, especially when the world’s economy recovered given the airline’s advantage of having wide network coverage worldwide.
Delta, its Northwest subsidiary and Delta Connection carriers currently operate service from hubs in the U.S. and Tokyo to 379 destinations in 66 markets, and serve more than 170 million passengers each year. Delta’s marketing alliances allow customers to earn and redeem on over 16,000 daily flights offered by SkyTeam and other partners.
Pham Van Hien, chairman and CEO of East Sea Travel and Air Service Co., Delta’s sales representative in Vietnam, said passengers from Hanoi would be able to fly with Delta to the U.S. and beyond through its code-share services with SkyTeam members.

Vinalines to expand to ship repair operations

HCMC – State-owned Vietnam National Shipping Lines (Vinalines), the nation’s leading shipping and seaport operating firm, will expand its operations to ship repair services.
Its subsidiary North Sea Transportation Company (Nosco) will develop a ship repair facility in the northern province of Quang Ninh.
Construction of the US$250 million Nosco-Vinalines ship repair plant started in Yen Hung District of Quang Ninh last Saturday, Vinalines said in a statement.
The facility will cover 100 hectares along the Chanh River. Vinalines experts said the location would enable the factory to receive large ships for repair.
The project will be developed in two phases, with the first requiring around US$150 million and being completed by 2011. After completing the first phase, Nosco-Vinalines can repair 120 to 150 ships up to 70,000 DWT a year.
The second phase is expected to be finished by 2013, by which the plant can repair 150 to 200 ships up to 100,000 DWT a year.
Vinalines is looking to obtain total turnover of VND1 trillion a year and generate 700-800 jobs when the plant is operational.
The Vietnam News Agency quoted Deputy Prime Minister Hoang Trung Hai, who attended the groundbreaking ceremony last Saturday, as requesting the plant’s investors pay due attention to environmental protection.
In February, Vinalines signed a deal with Vietnam Shipbuilding Industry Group (Vinashin) for 40 ships with delivery taking place from 2009 to 2013.
Last year, Vinashin started building four ships of 22,500 DWT and five ships of 12,500 DWT for Vinalines, as well as delivered three ships for the shipping company. These ships are part of a long term plan to add 32 new ships to Vinalines’ fleet.
Vinalines chairman Duong Chi Dung said that by the end of 2008, the corporation’s fleet had risen to 145 ships with a total holding capacity of 2.5 million tons. Vinalines now manages five key ports in the country – Saigon Port, Can Tho Port, Danang Port, Quang Ninh Port and Haiphong Port.

Samsung phone factory to come online this month


HCMC - South Korea’s Samsung Electronics Co. will commission the first phase of a US$670 million cell-phone factory in the northern province of Bac Ninh some time this month, said a source from Samsung Vina.
The facility in Yen Phong Industrial Park, some 30 km from Hanoi, will mainly supply foreign markets, the source told the Daily at a road show which Samsung Vina held in HCMC last week to present its LED televisions.
Everything is ready and the factory will have a trial run this month before commercial production, and target Asia as the first foreign market, the source said.
The world’s second largest mobile handset maker commented work on the plant in April last year.
The source give no further details about the project but others said the plant could produce 30 million mobile phones a year in the first stage, which will triple to some 100 million units in the long run.
The investment reflects Samsung’s effort to cut costs to improve its competitiveness on the global market and meet fast-growing demand in Southeast Asia.
In addition to Samsung’s phone plant in Gumi, some 260 kilometers southeast of Seoul, Samsung has facilities in China, India and Brazil.
For the television front, Samsung Vina late last week launched its first full line of LED Full HD televisions and a comprehensive line-up of audio-visual products at the Samsung LED TV - AV Roadshow 2009 in HCMC.
The 32 to 55-inch LED Full HD televisions come with price tags from VND17.9 million to VND129.9 million per unit.
These models use LEDs as their primary light sources rather than traditional Cold Cathode Fluorescent Lamps (CCFL) to achieve mega contrast ratios, slimmer depths of 29.9mm thick, 70% thinner than traditional LCD televisions, and energy consumption reduction of some 40% compared to traditional LCD televisions.

Mercedes-Benz Vietnam launches SUV



Vo Hoang Yen, the first runner-up of Miss Universe Vietnam 2008, poses next to the Mercedes GLK car at the unveiling in HCMC last week - Photo: Kinh Luan HCMC - Mercedes-Benz Vietnam has launched a sport utility vehicle model made on a new production line in which the company has invested about US$3.3 million.
The GLK SUV is designed as a sedan for use in the cities and a spacious versatile vehicle for any countryside or off-road trips.
It comes with the latest 4MATIC drive system and the 231 HP V6 engine and the 7G-TRONIC automatic transmission.
General director of Mercedes-Benz Vietnam Udo Loersch said, “GLK is a special model. It has opened up a new luxury vehicle segment in global markets. Now it prepares to make debut in Vietnam in early June.”The car has a price tag of US$77,900, including VAT.
“Vietnam is the only country in the world to produce GLK in CKD form. Quality standards of our national production are subject to strictest quality standards,” Loersch said. In CKD form, completely-knocked-down auto parts are imported and used for local assembly.

Audited results turn Kinh Do’s profit into loss

HCMC – Vietnam’s well-known confectionery maker Kinh Do Corporation (KDC) incurred losses of VND61.7 billion in the 2008 business year instead of a profit of VND142.3 billion as earlier reported, shows the consolidated financial report that has been audited.
The huge difference is due to the ways provisions are extracted for long-term equity investment under the Ministry of Finance’s Circular 13/2006/TT-BTC, the southern-listed firm said in a statement on its website.
In the firm’s fourth quarter financial report, Kinh Do did not set aside the provisions for its long-term equity investment in accounting, while the audited report done by Ernst & Young took this into account.
According to the Q4 report released by Kinh Do, the company’s total long-term financial investment as of December 31 was VND902.8 billion, with VND9.14 billion invested in its subsidiaries, VND32.4 billion in joint ventures, and VND835.6 billion in other investments. Its total provision for the falling value of long-term investments as of end-2008 was over VND19 billion.
Besides KDC, many other listed companies also face the same problem. Therefore, in the drafted circular on information disclosure by listed firms, the State Securities Commission requires listed companies to ask auditors to examine their six-month financial reports before publication.

Vietnam Airlines moves to join SkyTeam alliance



Dominique Patry, chairman of SkyTeam Steering Committee, addresses the news conference in Hanoi after the signing ceremony on Wednesday - Photo: Thanh Trung
HCMC, HANOI - Vietnam Airlines signed an agreement with SkyTeam on Wednesday in a move to join the global airline alliance, probably next year, enabling the national flag carrier to fly to more markets and provide more benefits to passengers.
Pham Ngoc Minh, general director of Vietnam Airlines, described the agreement the airline signed in Hanoi as important as it was the first step for the carrier to become a full member of SkyTeam, hopefully in 2010.
“The agreement confirms Vietnam Airlines’ position as a major airline in the region and a global reliable partner of SkyTeam in competing with other global airline alliances,” Minh said in a statement.
Minh added Vietnam Airlines would be able to provide passengers with thorough services in accordance with international standards of SkyTeam when the airline became a full member of the world’s second largest airline alliance after STAR Alliance.
Vietnam Airlines said in the statement that it was the only partner airline in Southeast Asia that SkyTeam had chosen to become its member.
Speaking to reporters after the signing on Wednesday, the air carrier’s deputy general director Duong Tri Thanh said joint operations, frequent flyer programs and airport services would be the three areas of most important cooperation among alliance members. Thanh said Vietnam Airlines had considered three air alliances over the past ten years before deciding to apply for SkyTeam membership.
Dominique Patry, chairman of SkyTeam Steering Committee, said Vietnam Airlines would give great support to the flight network of SkyTeam and help expand its presence, especially in Indochina.
“With wide flight coverage and services to more than five gateway airports of SkyTeam, Vietnam Airlines will be a strategic partner of SkyTeam,” said Patry, who is Air France’s vice president for international affairs and alliances.
He told reporters it often took airlines some two years to complete all admission formalities, but “I hope Vietnam Airlines will complete all formalities within 12 months.”
Vietnam Airlines now uses 50 aircraft of different types including Boeing 777s, Airbus A330s, A321s and A320s for its flights to 20 domestic destinations and 24 international destinations.
Despite the global economic turmoil, Vietnam Airlines last year posted a year-on-year revenue increase of 31.32% to more than VND26.6 trillion (over US$1.5 billion), including pre-tax profit of VND240 billion (some US$13.7 million).
The significant pre-tax profit marked a great achievement for Vietnam Airlines as this carrier incurred a loss of VND83 billion (more than US$4.7 million) in the first half of 2008.
Vietnam Airlines is looking to transport nearly 9.5 million passengers on its domestic and international flights this year, as against more than 8.8 million passengers last year.
Minh said earlier this year that 2009 would be a difficult year for the airline industry but the carrier would continue to improve competitiveness and kept following a long-term development strategy to become the second largest airline in the region after Singapore Airlines in the next seven to eight years.
Established nine years ago, SkyTeam now has 10 member airlines and three associate airlines including Air France-KLM, Continental Airlines, China Southern, Korean Air, and Northwest. These carriers with 2,500 airplanes now operate flights to 905 destinations in 169 countries and territories, transporting 462 million passengers a year.

Panalpina launches Vietnam unit

4/12/2009


HCMC – Panalpina World Transport (Vietnam) Co., Ltd, a subsidiary of Panalpina, the global forwarding and logistics service provider, on Thursday made its first public appearance in HCMC.
Panalpina set up the company in Vietnam through a joint venture with a local partner in Vietnam, after nearly 15 years of operating here as a representative office.
The new office in HCMC is located at the Seagull Building, 39B Truong Son Street, Tan Binh District, next to the Tan Son Nhat International Airport and the international cargo terminal.
The Vietnam unit will support Panalpina’s goals to further grow and increase its market shares, particularly in the field of supply chain management and project shipments as well as in oil and gas, retail, fashion and telecommunications, according to Panalpina.
Panalpina CEO Monika Ribar Baumann told the opening ceremony that Panalpina Vietnam was an important member of the worldwide Panalpina family which incorporates a network linking all major trade lanes. The group operates own organizations in over 80 countries. The strength of the group is one of the big assets of this company, combining global know-how and purchasing power with local expertise, Baumann said.
Vietnam plays an important role in Panalpina’s strategy to gain an additional market share in Asia and to become a partner of choice for seamless supply chain management solutions, she said.
Despite the current financial and economic crisis, Panalpina continues to invest in its service portfolio, product development and staff education, she said, adding that opening the office of its new subsidiary in HCMC would allow the group to expand business activities. Vietnam is a potential market for Panalpina, she said.
Matthew Mahoney, managing director of Panalpina World Transport (Vietnam) Co., Ltd, told the Daily he believed his company would grow in Vietnam, despite the increasingly bad news about the state of the global economy and the financial markets.
Vietnam attracted a lot of big investors last year, especially in the north, so they will deploy their projects soon, he said.
Panalpina has been present in Vietnam for almost 20 years, and has achieved considerable growth and had a fruitful relationship with its long-time partner Vinatrans, one of the major Vietnamese freight forwarding companies under the Ministry of Trade (now the Ministry of Industry and Trade).
Panalpina Vietnam last year increased its ocean freight volumes by about 14% and its air freight tonnage by 24% year-on-year. A major milestone was set in December 2008 when the company became fully operational.
“Panalpina is one of the leading providers of supply chain management and transport services in Vietnam. Last year, with some 70 employees we achieved major growth in the ocean freight and air freight business field. And we will continue to grow,” Baumann said.
The financial and economic crisis has impacted on Panalpina, said Monika. “As a global logistics and transport company we are directly affected if less products are produced and sold, thus the global trade volumes are growing less than in previous years, or even declining.”

Stronger selling douses market


HCMC – A strong flood of selling orders on the market on Thursday doused the market although the sentiment turned stronger on Thursday upon news of strong rallies on global markets, resulting a mild decline on the VN-Index, which eased 2.04 points, or 0.65%, from the previous session to 311.72 points.
The Hochiminh Stock Exchange reported investors bid for 78.5 million shares, decreasing 11% from the session earlier, while the amount on offer sprang up by a staggering 62% to 81.8 million shares. At the end of the session, the market’s total trading volume was 35.6 million shares worth VND850.8 trillion.
The market saw 57 stocks increasing and 89 others falling, including 21 stocks hitting the ceiling prices and 18 others falling to the floor prices.
Sacombank (STB) once again was the most actively traded stock on the bourse, increasing 2.1% to VND18,400 each on traded volume of 3.87 million shares. Saigon Securities Inc. (SSI), the second most traded stock, was up 4.89% to VND36,500 on volume of 2.28 million shares. Saigon Cables and Telecommunication Co. (SAM) rose 4.97% to VND19,000 with 2.18 million shares changing hands.
Most of other large cap stocks including Vinpearl Trading and Tourism Co. (VPL), Pha Lai Thermal Power Co. (PPC), Vinamilk (VNM), and PetroVietnam Fertilizer and Chemicals Co. (DPM) fell on the day.
Foreign investors were heavy net sellers as they reduced buying value by 72% to VND19.5 billion worth of 679,400 shares and sold 2.28 million shares worth VND56.5 billion.
Vietnam International Securities Co. (VIS) in its daily report said that investors would continue taking profit and restructuring their portfolios given first quarter earning reports published by listed firms.
“The VN-Index would possibly set aside and move around 310-315 points for the time being,” said the report.
Meanwhile, Dai Viet Securities Co. in its daily report said that the market’s trend was still unclear as two correct sessions were normal after the strong increase in several sessions earlier. In addition, despite lower trading volume, it was still at high level that meant the market might bounce back again.
Fiachra Mac Cana, managing director of HCMC Securities Corp. (HSC), said in a report that key issues such as SAM, SSI, KLS and REE were strong on Thursday suggesting that any correction was going to be fairly shallow.
“However our quant desk reminds us that unless the market stages a recovery tomorrow we may see further profit taking next week. Hence tomorrow is a key day for the market short term. Close up and the rally will be back in active mode. Close flat or down and we may see further modest declines next week,” he added.
Not like the southern bourse, Hanoi’s market rose 2.56 points, or 2.35%, from the session earlier to 111.49 points due to support from large cap stocks like ACB, BVS, KBC. The market’s total trading volume was 20.1 million shares worth VND486 billion, decreasing one-third from the session earlier.
There were 58 stocks advancing and 92 others falling. Foreigners, however, were net buyers on the northern bourse despite at a small margin. They bought 118,000 shares worth VND2.51 billion and sold 122,100 shares worth VND2.47 billion.
The Saigon Times Daily

Major steel projects put on hold

HANOI – A number of huge steel mill projects have been either put on hold or delayed for a long time, particularly those involving India’s Essar Steel, Taiwan’s Thien Huong and Formosa, and Vietnam’s Lilama, Bach Dang and Phu My.
A most recent Ministry of Industry and Trade inspection of key steel projects found that only 17 among 23 steel projects prioritized for implementation in 2007-2015 had got off the ground.
The high-profile project with involvement of Essar Steel with a 65% stake, Vietnam Steel Corp (20%) and Vietnam Rubber Group (15%) has been hanging in the balance. The investors originally planned to inject more than half a billion U.S. dollars into phase one of the hot strip mill with an initial capacity of two million tons a year but Essar is seeking a local partner to transfer its stake.
Nguyen Manh Quan, head of the ministry’s Heavy Industry Department, said in a report on the inspection that the Indian firm had proposed suspending the project in Phu My Industrial Zone in Ba Ria-Vung Tau Province due to financial constraints and tough market conditions.
Taiwan’s Thien Huong stainless steel project was licensed in 2006 but the investor has lost the license due to long delays.
In another 18 steel projects which are being developed in 2007-2015, four have not been able to go ahead as scheduled, including the cold rolled steel plants of Lilama, Formosa and Bach Dang, and phase two of Phu My steel plant.
Pham Chi Cuong, chairman of the Vietnam Steel Association, has suggested strictly monitoring all the licensed steel projects. “If (the projects) fail to conform to the approved schedules without due reasons, their licenses should be revoked.”
Authorities should keep a close watch on the pace of large foreign-invested projects, he said, proposing a ban on stake transfers from one investor to another.
For some projects, work has begun on the first phase only while they occupy a lot of land, affecting other projects, he noted.
Vietnam Steel Corp experts estimated each steel project needed 1,000 to 3,000 hectares of land, excluding land for seaports and support industries.
“Under the current circumstances, the wastefulness of land and long delays in steel projects will cause considerable losses for the places where the projects are located since vast areas of agriculture land have been occupied,” Nghiem Gia of the corporation told a recent roundtable at the Vietnam Steel Association.
The Saigon Times Daily