[Round-up] Vietnam’s Struggles to Attract Buyers of SOEs, Retail Sales up 10.6%

Tuan Minh

06:26 01/11/2017

BizLIVE - The number of strategic investors participating in Vietnamese state-owned enterprises (SOEs)’ equitization has been lower than expected. The country’s retail sales increased 10.6% year-on-year to $107.9 billion.

[Round-up] Vietnam’s Struggles to Attract Buyers of SOEs, Retail Sales up 10.6%

Vietnam's retail sales increased 10.6% year-on-year to $107.9 billion in Jan-Oct.

SOEs Struggle to Attract Investors in Equitization
The number of strategic investors participating in state-owned enterprises (SOEs)’ equitization has been lower than expected, and attracting strategic shareholders is crucial in accelerating SOEs’ restructuring process, said Pham Duc Trung, head of CIEM’s Corporate Development and Reform Department.
The CIEM reported that since 1992, Vietnam has equitized over 4,500 enterprises, though the process has yet to meet the economy’s growth rate, with some targets missed, including subpar sales of shares to investors.
Vietnamese Textile, Garment Exports May Exceed $30 Billion
Vietnam’s textile and garment exports turnover in 2017 may exceed the target of $30 billion, according to the Vietnam Textile & Apparel Association, which says $2 billion worth investment has poured into this sector this year to date.
The country has not witnessed many large-scale new foreign direct investment (FDI) projects in this sector this year as was seen three years ago. However, foreign investors are seen expanding their existing projects, according to a report in an English-language online newspaper in Vietnam.
U.S. Garment-Textile Firms Seek Opportunities in Vietnam
U.S. garment-textile and footwear businesses are seeking their own investment opportunities in Vietnam as their country has withdrawn from the Trans-Pacific Partnership (TPP) earlier this year.
In late October, the American Apparel & Footwear Association and the American Chamber of Commerce in Vietnam (AmCham) held a series of activities in Ho Chi Minh City, including an international workshop on product safety and compliance issues.
Vietnam's Retail Sales, Service Revenue up 10.7% in January-October
Vietnam's total goods retail sales and consumer service revenue stood at 3,258 trillion dong (nearly $144.2 billion) between January and October, rising 10.7% from a year earlier.
Of the sum, retail sales were 2,439 trillion dong ($107.9 billion) in the ten-month period, up 10.6% year-on-year, according to the General Statistics Office.
Vietnam's Auto Imports Fall in Jan-Oct
Vietnam spent over $4.2 billion importing completely-built-in automobiles and components for assembly in the first 10 months of this year, dropping 12.8% year-on-year.
On breaking down, Vietnam imported 77,000 CBU autos worth nearly $1.7 billion, representing year-on-year declines of 11.2% and 13.7%, respectively, according to the country's Ministry of Industry and Trade on Tuesday.
Khaisilk Set to Face Criminal Probe
Vietnam’s famous silk brand Khaisilk may face a range of investigations after a scandal triggered widespread calls for the boycott of the luxury Vietnamese brand last week.
The Ministry of Industry and Trade said on October 30 it had passed on all relevant documents to the police, who are set to launch a criminal probe into Khaisilk after an inspection last week uncovered fake Chinese-made products at one of its Hanoi outlets.
Vietnam’s TH Group Seeks Russia Sites for $1.7 Billion Dairy Investment
Vietnamese dairy company TH Group is investigating regions of Far East Russia for farm and processing plant locations as part of its announced plans to invest some $2.7 billion in the country.
The majority of that amount, or about $1.7 billion, is expected to flow into the Far East regions of Russia, with a delegation from the company this month visiting sites in the Khabarovsk territory. Local officials said the Vietnamese company is considering the construction of a large dairy complex for 2,400 cattle.
Canada Launches Probe into Vietnamese Copper Pipe Fittings
The Canada Border Services Agency announced that it is launching investigations into whether or not certain copper pipe fittings (CPF) imported from Vietnam are being sold at unfair prices in Canada, according to the Vietnamese Ministry of Industry and Trade.
The investigations follow a complaint filed by Cello Products Inc. in Cambridge, Ontario. The company said that due to price undercutting from Vietnam, it faces lost sales and market share, resulting in negative financial results.
Lawmakers Debate Socio-economic Development, State Budget Plans
Legislators discussed the results of the implementation of the socio-economic development and State budget plans for 2017, as well as the socio-economic development plan, state budget estimates for 2018 and a financial-budget plan for 2018-2020 during the plenary sitting on October 31, according to VNA.
Major issues debated at the sitting included the outcomes, shortcomings, advantages and challenges in the implementation of socio-economic development tasks in 2017, and the performances of the government, National Assembly and other agencies in the field.
National Private Economic Development Research Board Debuts
The National Private Economic Development Research Board made its debut in Hanoi on October 30.
The board, managed by the Government’s Advisory Council for Administrative Procedure Reform, is aimed at helping the Government reform mechanism, policies and administrative procedures related to the private economic sector, in keeping with the national economic objectives.
Moody's Investors Service has changed its outlook for Vietnam's banking system from stable to positive for the next 12-18 months, reflecting the country's strong economic prospects and the positive outlooks for most rated banks, and also warned of consequences from rapid credit growth.
"The change in outlook -- which expresses our expectation of how bank creditworthiness will evolve in this system over the next 12-18 months -- reflects Vietnam's robust economic growth, supported by domestic demand, healthy exports and public sector investment," says Eugene Tarzimanov, a Moody's Vice President and Senior Credit Officer.
Vietnam welcomed 1.025 million foreign holidaymakers in October, bringing the number of overseas tourist arrivals to 10.473 million in the first ten months of this year, up 28.1% from a year earlier, according to government data.