Singapore’s BreadTalk raisin muffins are safe for consumption, the local bakery chain said yesterday, after Hong Kong paper Apple Daily reported that elevated levels of aluminum were found in the muffins there. …
Harney’s documentary, some two years in the making amidst stiff opposition from some Indian political and business figures, tells the tale of pollution and environmental degradation of one of the world’s most beloved natural landmarks, the Ganges (or Ganga) river, which hundreds of millions of Hindus believe is a holy body of water.
However, the sanctity of the Ganges has been severely compromised by the activities of illegal mining companies (operating in league with corrupt politicians and organized crime figures) and multinational dam construction companies.
Harney’s film takes a somewhat unusual perspective — it narrates the saga from the point of view of Hindu sadhus and gurus (holy men) who have been protesting what they view as the desecration of the Ganges for the past 20 years and suffered threats, beatings, arrests and perhaps even murder. Two priests have died in mysterious circumstances since the protests erupted, including a sadhu — Swami Nigmanand –who underwent a self-imposed (68 day long) fast to express his outrage over mining projects at the Ganges.
Meanwhile, the investigation into the Swami’s death continues, while more sadhus persist in their determined movement to stop illegal miners from damaging their beloved Ganges.
You can see a preview of the film here and here.
Lisa Harney, currently in Delhi, kindly agreed to speak to International Business Times about her award-winning film and the Hindu holy men who have turned into unlikely eco-warriors.
IB TIMES: How did you come to find this story about the swamis’ hunger strike and illegal mining around the Ganges?
HARNEY: Purely by coincidence. After making a film about the clean-up of the Pasig River in Manila (then the dirtiest river in the world) in the Philippines, I went to Badrinath in the Himalayas for a holiday. It was there I met the young sannyassin [member of the sannyasa order of Hinduism], Swami Nigmanand, who told me all about their struggles on the Ganges. I was immediately fascinated that they had fought so hard, and laid their lives on the line for the preservation of the river. It was their spiritual and emotional connection to the river that inspired them. I think this also inspired me.
IB TIMES: What prompted you to make a film about it?
HARNEY: The death of Swami Nigmanand was the catalyst, after his 68-day satyagraha [in this case, a nonviolent protest and fast] in 2011, he had died in hospital. Official hospital records say that he died from complications related to starvation, but his guru, Swami Shivanand, maintained that he was poisoned by the land mafia in Hardiwar [a district in the state of Uttarakhand, along the Ganges].
I came to India to pay my respects to the sannyassin, and that was the exact time that they began mining the riverbed again. Only four months after Nigmanand’s death, and after a high court order which stated that mining was destroying the river, they subsequently banned mining. Just four months later, the Uttarakhand government overturned the court’s judgment to allow mining again.
It was then that Swami Shivanand decided to undertake another satyagraha in place of his disciple, and so I hastily put together some film equipment and filmed the satyagraha, initially only as a record. But the events were so bizarre that we decided to turn it into a documentary.
It’s a serious thing to make a documentary, a vast amount of work and resources are needed to do it properly. I was really the person in the right place, with a camera at hand. But it has taken almost two years to complete, lack of funds was part of the problem, but I was also waiting for results of the investigation by the CBI [Central Bureau of Investigation, India’s premier police agency] on Nigmanand’s death.
And then the Uttarakhand [flash flood] disaster happened on the river [in June 2013], and all this needed to be included in the film, so the full story could emerge.
IB TIMES: You said it was difficult to get financing for the film. But who agreed to provide funding? Any Indian sources?
HARNEY: The financing came from a businessman based in Singapore named Brett Traynor of the Kuranda Trading Group. He gave us the seed money to make the film after I told him about the saints and their plight. He was definitely moved by the story and without him, the film would not have happened. We were also supported by our environmentalist community in the Bay Area [California] and many other people contributed to an Indigogo [crowdfunding to raise money] campaign.
We were, and are, woefully underfunded to make this film — the only people that were paid were the Indians working on the film, everybody else gave their time and expertise for free to tell the story of the saints and of illegal mining on the Ganges.
There were no Indian sources for funding and we have absolutely no marketing budget, so we are relying upon festivals, word-of-mouth, and the press, who have really begun to support this film to spread the word and get distribution — we are hoping — across many platforms including TV.
It helps that we are getting awards too. These kinds of one-off feature-length documentaries fall into a category that isn’t really supported by television, which is the usual source of funding for documentaries. It really relies upon the passion and commitment of the filmmaker to bring these stories to light and so that there is some check in place for people in the business of mining and construction to follow the law.
IB TIMES: Did the Indian government and police impede your attempts to make the documentary? If so, what specifically did they do?
HARNEY: About ten days into Swami Shivanand’s satyagraha, we found that the [electric] power in the ashram of the saints of Matri Sadan, where we filmed, had begun to mysteriously surge. Luckily, we had brought a power-surge protector from the United States, as it would have otherwise destroyed our hard-drives and the batteries for the camera. By destroying our hard-drives, they would have deleted everything filmed up until that point. This went on for a few days, and we couldn’t work out what was happening, and so we moved the equipment to a nearby hotel.
Later, after the saints complained about it, I saw the SDM [Sub-Divisional Magistrate, a local government administrator] actually call the power company to get them to stop the power surge. It’s an example of how the mafia works, paying off an employee at the power company to do it. After that, they tried to arrest us. But as we were filming only inside the ashram, which is a private residence and not in public, they had no legal basis upon which to detain us. They also put local intelligence officers on our case, who followed us everywhere. Even our translator was bribed to report our movements to them. It became very scary at times.
IB TIMES: Did you uncover incontrovertible proof that the ‘land mafia’ in India are linked to and/or protected by politicians?
HARNEY: What we did put in the film is that the politicians of Uttarakhand have financial stakes in the mining industry. They claim they are doing nothing wrong, but there is a conflict of interest here. The very person whose portfolio [government ministry] responsibility is to keep in check illegal mining and protect the river, also owns stone-crusher and mining companies in the region. If this isn’t corruption, then what is?
Our source here is Tehelka [Indian investigative news organization]. There are different factions at play here, and in a climate of corruption as India is currently ensnared in, those people whose job it is to protect the river, are often paid to turn a blind eye. It extends up to the very top and the Chief Minister of Uttarakhand [Vijay Bahuguna] even told Swami Swaroop Sanand [a former environmental engineer turned sadhu], that if he could bring in the same amount of money as development and construction generates in the region, then he would stop development on the river. This ignored the fact that religious tourism is the financial cornerstone of the state and brings in far more money. (And what do people come to see? The Ganges River!)
Then when the Uttarakhand [flash flood] disaster happened, much of the rampant and poorly executed construction on the banks of the river were destroyed. There are laws in place to protect the river, they just aren’t enforced and whose responsibility is that ultimately? The buck has to stop at the politicians who administer the state and are allowing it to happen.
IB TIMES: Do you believe Swami Nigmanand was indeed murdered, perhaps by poisoning?
HARNEY: The saints absolutely believe he was murdered, all the ducking and diving, all the hidden agendas, all the bizarre behavior by the government employees and the doctors suggest a cover-up. When I had experts look at the medical evidence, they couldn’t make head or tail out of it, and said the medical records were so poor they couldn’t for certain draw any conclusions. These people are experts in their fields of forensic medicine and poisons. They all say that the medical records suggest total incompetence at best.
There were a lot of confusing factors in the murky story of his death, but what is absolutely incontrovertible is that he was treated by the drugs Atropine and Glycopyrrolate, in significant doses which are used only in cases of organophosphate poison. And he was not treated for Wernicke’s encephalopathy which was given as the cause of death according to the results of the CBI investigation.
IB TIMES: What is the current status of the official investigations into the swami’s deaths?
HARNEY: It is currently in court in Uttarakhand, and in the light of new evidence, the swamis of the Matri Sadan [ashram] say the judge has accepted that [Nigmanand] has been poisoned, but the case is not complete and there is no official court statement.
IB TIMES: What would you say to people who counter that India has to undertake such mining projects in order to keep advancing economically?
HARNEY: What, and make sure that there is not enough water for the half-a-billion people that survive due to the Ganges? The river irrigates vast areas of croplands in northern India, feeding and watering almost half of India’s entire population. Mining is destroying the ecology of the river, the groundwater has gone down by half (12 feet), the river’s course has been drastically altered by mining, the level of the water is dropping at an unprecedented rate along the entire 1500-mile long river. In addition, global warming is melting the [Himalayan] glacier which supplies water for the river. It’s completely unsustainable. The river is under siege from a multitude of factors.
In other places, construction companies and cement makers quarry for the raw materials needed to construct roads and other structures, but to take it from the bed of a river that is so vital to India’s survival is utterly criminal.
Advancing economically does not and should not mean that you should be allowed to destroy the means by which people survive. Aside from a fiscal value, the river has vast spiritual and cultural significance — by destroying it, they will also destroy people’s faith, which is very serious.
I also doubt that the mining and construction companies are spreading the wealth in India amongst those whose good fortune it is to live by the Ganges. Mining is, no doubt, economically advancing a few, at the cost of the many in this case. The Ganges is a legacy belonging to all the peoples of India.
IB TIMES: What is your background and what other documentaries have you made?
HARNEY: I’ve made a fair number of environmental-themed films, like the one about the Pasig River in Manila that I mentioned earlier. I was also with [Indian author, political activist] Arundhati Roy on the Narmada Dam protests in India some ten years back.
I lived in London for many years, and though I now live in California, I made a lot of films for the BBC, the Discovery Channel, PBS, RTE [Irish broadcaster], and National Geographic. Many of these works were about art, history and music, balanced with environmental and science-based documentaries.
IB TIMES: Where in India will the film be screened? Have authorities already tried to ban its exhibition in the country?
HARNEY: We have just screened it at the Delhi International Film Festival and it won the best documentary award, and we also won a certificate of excellence at the Indie Fest on the work-in-progress (they are based in Los Angeles).
I have also entered it into the Mumbai Film Festival in February, and we are waiting to hear if it has been accepted. You don’t need a film censor certificate for film festival screenings, but when we distribute it more widely, which will be soon, we will need to get one. They [Indian government officials] could conceivably ban it at that stage.
IB TIMES: Do you expect to show it in Europe and the U.S.?
HARNEY: We have started to enter the film into some festivals in the US and Europe; but again we are waiting to hear if it has been accepted into the film festivals, specifically environmental festivals like the San Francisco Environmental Film Festival and SXSW [South by Southwest festival in Austin, Tex.]
IB TIMES: As a western woman, did you encounter a lot sexism and harassment from Indian men?
HARNEY: Sexism exists everywhere. I think if you are foreign in India, you are afforded a status that is different and doesn’t [adhere to the] the same rules — this can be to your benefit at times, but it can also mean that men take liberties which no Indian woman would allow. People are people, and I’ve been helped and supported by many fantastic people in India.
IB TIMES: Do you hope to make more films about India in the near future?
HARNEY: I would love to make more films about India, it is an endlessly fascinating place, full of a rich, vibrant, tradition of spiritual and intellectual greats. India’s real wealth is in the heart of its people.
Kaliamurthy, currently out on bail, had last week asked the court to change the “unilateral decision” of the Immigration and Checkpoints Authority (ICA) – to report to them on a daily basis to get his special pass – to a weekly one, in line with court-ordered bail conditions.
But Deputy Public Prosecutor John Lu today told the court that as Controller of Immigration, “ICA has the power to impose whatever conditions they want when they issue an ‘S’ Pass”.
“That’s an executive decision, and unfortunately this court has no power to review that decision,” said Lu.
Responding to Lu’s statement, Kaliamurthy’s lawyer M Ravi said that his client was being “unequally treated”, given that the other accused continue to enjoy the benefits of their work permits, and only he had his social visit pass cancelled.
Ravi indicated that he will seek a judicial review in the High Court on the matter, The Straits Times reported.
The case has been fixed for a pre-trial conference on January 29.
It was “extremely oppressive and unreasonable” to be required to report to the ICA daily, Kaliamurthy said.
He is among 25 Indian nationals being charged for rioting in Little India, a precinct of Indian-origin businesses, eateries and pubs where most South Asian workers take their Sunday break.
The trouble started after a private bus fatally knocked down an Indian pedestrian in Little India on December 8. Some 400 migrant workers were involved in the rampage that left 39 police and civil defence staff injured and 25 vehicles — including 16 police cars — damaged.
Singapore previously witnessed violence of such scale during race riots in 1969. 56 Indians and a Bangladeshi have been deported from Singapore for alleged involvement in the riot.
Anti-dumping measures on cold-rolled stainless steel
The Ministry of Industry and Trade issued a decision imposing temporary anti-dumping measureson cold-rolled stainless steel imported from Taiwan, Indonesia and Malaysia.
These products are classified under code sections 7219.32.00; 7219.33.00; 7219.34.00; 7219.35.00; 7219.90.00; 7220.20.10; 7220.20.90; 7220.90.10; and 7220.90.90.
The imposition of these penalties is in accordance with Vietnam’s anti-dumping laws and regulations and the Ministry of Finance’s guidelines of paying anti-dumping duties.
The decision will become effective as from January 25, 2014.
Vietnam-Cambodia trade targets US$5 bil by 2015
Two-way trade between Vietnam and Cambodia has continuously grown over the years and is likely to reach US$5 billion by 2015, said Tran Bac Ha, President of the Association of Vietnamese Investors in Cambodia (AVIC).
After the eleven months of the year, two-way trade reached US$3.1 billion including US$2.7 billion from exports and US$465 million from imports, up 5% and 8% respectively against the same period last year, according to the Asia-Pacific Market Department.
Vietnam’s high import-export turnover of about 85% has enabled the country to become Cambodia’s third largest trade partner among over 140 nations and territories investing in the country.
Vietnam’s key Cambodian exports include petroleum, steel and iron, garments and textiles, agricultural machines, chemicals and fertilizers.
Cambodia’s Vietnamese exports include rubber latex, timber products, and tobacco materials.
Under an agreement to promote bilateral trade between the two nations in the 2014-2015 period, Vietnam is providing preferential tariffs of zero percent on 63 commodities from Cambodia while Cambodia is not imposing an import tax on 20 commodities of Vietnam.
Additionally, an agreement on transit goods should help Vietnam and Cambodia perfect a legal corridor for facilitating the transit of goods.
Vietnam-Brazil trade surpasses US$2 billion
Two-way trade between Vietnam and Brazil hit US$2.3 billion in 2013, including US$1.1 billion from Vietnamese exports, according to the latest statistics released by the Vietnam Customs Department.
Other statistics indicate that bilateral trade enjoyed a hefty year-on-year increase of 28%. Vietnam’s imports from the Brazilian market rose 52.5% from a year earlier to
US$996.87 million, while its export revenue grew by 11.8% year on year to US$1.08 billion.
The two countries are expected to accelerate their bilateral trade to roughlyUS$5 billion over the next five years, and US$8-10 billion by 2020.
Saigon Newport Corporation wins port contract
Saigon Newport Corporation (SNP), one of the leading terminal operators in Vietnam, has won a contract to operate Cai Mep – Thi Vai international container berth for 30 years.
The leasing contact was signed between SNP and the Vietnam Maritime Administration in Hanoi on December 30.
Located in the southern coastal province of Ba Ria- Vung Tau, Cai Mep-Thi Vai port complex is able to accommodate the vessels of up to 110,000 DWT (9,000 Teus).
With the advantageous location, the terminal will make important contribution to the marine development and foster economic development in the region.
The US$611 million project, was financed by Japan’s official development assistance loans and Vietnam’s counterpart capital.
The Cai Mep terminal consists of two piers of 600 metres in length and can handle vessels of up to 110,000 DWT and has an annual capacity of around 700,000 TEUs.
The Thi Vai terminal also has two piers, and can handle ships of 50,000 tonnes.
Industrial production grows by 7.4% in 2013
Vietnam’s industrial production value in 2013 grew by 7.4% from last year’s figure thanks to the remarkable recovery of the processing and manufacturing industry.
The information was heard at a meeting held by the Ministry of Industry and Trade (MoIT) in Hanoi on December 30.
According to the ministry, the processing and manufacturing enjoyed a much higher growth than the 5.5% increase in 2012 and accounted for 71% of the entire sector’s added value. Inventories in the field gradually fell over months.
By December 1, the inventory index only saw a year-on-year rise of 10% compared to a 21.5% increase at the beginning of the year.
Meanwhile, the scale and growth of Vietnam’s exports were higher than expected, helping the country gain trade surplus.
The export structure was shifted in line with industrialisation orientations and the ten-year import-export development strategy until 2020 with a vision towards 2030. Accordingly, processed goods accounted for 71% of total exports, followed by agro-aquatic products with 15%, and minerals and fuels, 7%.
Particularly, telephone and spare parts surpassed garments to become the largest hard currency earner with US$21.5 billion, making up 16% of the country’s total export turnover and enjoying an impressive growth of 69.2%.
The import-export activities of domestic enterprises recovered and tended to increase. Their 2013 export turnover was estimated to grow 3.5%, up 2.3% against the previous year.
Credit growth reaches 11 percent
The banking sector’s credit growth reached 11 percent in 2013, which is said to suit the banks’ “health,” the Lao Dong (Labour) newspaper reported, citing reports of the State Bank of Vietnam (SBV).
The loan to deposit ratio was between 91-92 percent, lower than the 2011 level (more than 100 percent).
Nguyen Thi Hong, head of the SBV’s Monetary Policy Department, said at the bank’s December 16 conference that the credit structure saw remarkable improvements, focusing on production and business, especially the prioritised fields.
In the first 11 months of this year, credit to rural farm production increased by 17 percent; high technology – driven enterprises, 24.51 percent; and exports, 3.32 percent.
Bad debts were also gradually brought under control.
According to the SBV’s estimation, about 105.9 trillion VND (4.977 billion USD) of bad debt was settled during 2012 and the first 10 months of this year.
The bank said the interest rate in 2013 was kept stable, increasing only 1 percent against the forecast rate of 1-3 percent at the beginning of the year.
The year 2014 is forecast to still be difficult for the banking sector. Thus, the sector needs to prepare provision for bad debts. Nevertheless, the SBV projects that Vietnam ’s banking sector would grow by 12-14 percent in 2014.
Expressway toll collection auctioned in HCM City
Cuu Long CIPM on December 30 signed a contract for toll collection rights to the Ho Chi Minh City-Trung Luong Expressway with Yen Khanh Service Trading and Production Co Ltd.
The HCM City-based company won the auction with a bid of 2 trillion VND (95.2 million USD) for permission to collect tolls at four existing stations, Cho Dem, Tan An, Ben Luc and Than Cuu Nghia, for five years starting from January 1. The payment will be made in three phases over six months.
The Ministry of Transport had assigned the Cuu Long Corporation for Investment, Development and Project Management of Infrastructure (Cuu Long CIPM) to oversee the contract with Yen Khanh Company, said Duong Tuan Minh, director general of Cuu Long CIPM.
“It is the first infrastructure project in the country in which toll collection rights have been transferred via public auction,” he said.
The successful auction would lay the foundation for cooperation between the State agencies and private economic sector to develop transport infrastructure, Minh said at the signing ceremony.
Deputy Minister of Transport Nguyen Van The has asked Cuu Long CIPM and Yen Khanh Company to work closely to implement the contract to address any problems arising during the contractual period.
The 40-km expressway connecting Ho Chi Minh City to Tien Giang province in the Mekong Delta was put into operation in February 2010. It started collecting fees in February 2012. It was built at a cost of nearly 10 trillion VND (476 million USD) funded by the State budget.-
Retail sector growth slows as consumer spending crimp
Vietnam’s total retail sales and service revenues reached 2,618 trillion VND (124.66 billion USD), up 12.6 percent year-on-year, the General Statistics Office (GSO) reported.
The increase, however, was the lowest seen in the past four years, compared with the 24.5 percent, 14.2 percent and 16 percent increases seen in 2010, 2011 and 2012, respectively.
Vu Manh Ha, a senior expert at the GSO Trade Department, blamed this year’s slower retail sales pace on low local demand as customers have curbed spending to focus only on buying or using essential goods and services.
Many enterprises in the sector, meanwhile, had to restrict their business expansion plans as they continued to encounter obstacles including capital shortages, a high volume of stockpiled goods, and increasing prices of raw materials, Ha said.
The trade sector, which accounted for nearly 80 percent of total revenues, rose 12.2 percent over the same period last year, while hotel and restaurant services’ revenues were up 15.2 percent, and the tourism sector saw a modest rise of 3.5 percent.
During this year, foreign-invested enterprises posted the highest revenue rise of 33 percent, followed by the local private sector, with 15.3 percent. Notably, State-owned companies saw an 8.6 percent slump in total retail sales.
The country’s retail sector, with a boost from foreign retail distributors, has initially proven it has changed for the better.
At present, there are 650 supermarkets in 59 of the 63 provinces and cities across the country and 117 shopping centres in 32 provinces and cities.-
Risks of high inflation rate in 2014 to linger: authority
The Price Management Department under the Ministry of Finance has forecast that there still are risks for Vietnam’s inflation to be high in 2014 due to the impact of policies to remove difficulties for business and production in 2013.
During a December 30 conference on the development of Vietnam’s prices and market in 2013 and prospects for 2014, the department also pointed to natural disasters, floods and animal and plant diseases in 2013 as another reason for the forecast.
According to Dr. Vu Dinh Anh, in 2014, the price development will be affected by the traditional management policies as well as slow growth of demand.
On the other hand, prices and market will also be impacted by loosening policies such as the widening of budget deficit to 5.3 percent of GDP and the issuance of bonds worth 170 trillion VND (8 billion USD) for the 2011-2015 period, he said.
In addition, efforts to ease difficulties for enterprises, support the market and speed up growth may force the currency flow to move faster and intensify the inflation pressure.
Sharing Anh’s opinion, economist Ngo Tri Long held that major challenges still face the national economy in 2014 as the global economy is forecast to remain gloomy.
Although the consumer price index has been brought under control, the risk of price hikes still looms, he said.
According to the General Statistics Office, the December CPI increases by 0.51 percent month-on-month and 6.04 percent year-on-year. The 2013 average CPI increase is at 6.6 percent over that of 2012, marking the lowest rise in the recent 10 years, it said.
Meanwhile, Pham Minh Thuy from the Economic-Financial Institute under the Ministry of Finance, said the price developments in 2013 prove the efficiency and proactiveness of the Government’s interference in the market.
He also emphasised that the stable prices in 2013 can be a good chance for the Government to adjust those of a number of products in the market mechanism and reach the set target of controlling the inflation at the same time.
However, he added, the adjustment should be carefully considered to avoid market shock and adverse impact on the daily life.
Chili planters enjoy record price
Despite the selling prices of many crops in the southern province of Soc Trang have shown a slowdown this year, chili planters have earned huge profits. Hot chili trees have opened a new, promising business trend for farmers in this Mekong Delta province.
Local planters have sold their hottest chili or ot chi thien,(meaning chili that points to the sky) or ot hiem (chili like Pequin) between 38,000 and 42,000 VND per kilo as their wholesale prices, the highest selling rate recorded in Soc Trang over the last couple of years.
According to farmer Ly En from Dai Tam village, My Xuyen district, his family has earned over 10 million VND as profits from his 2,000 square metres of chili plantation. En said if the chili selling price keeps stable from now to the lunar New Year, he will earn a highest income level over the last ten years.
Farmer Lam Thanh Ha explained that chili planters in Soc Trang province have enjoyed a bumper crop due to favourable weather conditions. Ha said under the shadow of chili trees, farmers also can grow lettuces, green onions, and coleslaws to add up their incomes.-
Obstacles block formation of supermarket joint venture
Domestic retailers have failed to forge an alliance to compete with foreign rivals, experts have said.
Four large domestic retailers – Satra, Hapro, Phu Thai and Sai Gon Co-op – planned to build a large retail group, VDA, with a strong trademark that could compete with foreign trademarks and would be the driving force in the local retail industry. However, the plan fell through for many reasons.
Pham Dinh Doan, Phu Thai Group chairman, told Thoi bao Kinh Doanh newspaper that the greatest challenge had been acquiring land and infrastructure. Establishing the alliance required support from the government.
In addition, the state should provide support for logistics services to the group because these services are poor in the domestic market, stated Dinh Thi My Loan, chairwoman of the Association of Viet Nam Retailers.
Therefore, the group has planned to build a logistics system to complete the supply chain in the domestic retail market, but the group has faced difficulty in acquiring land to build warehouses in various provinces and cities.
Nguyen Thi Thu Hien, Hapro’s managing director, noted that the four large retailers had the same target for launching the joint venture, but they did not have a unified management system for it.
Hoang Tung, the founder of the Pizza Home trademark, claimed the VDA was a joint venture amongst the four groups, but they each had a different business culture and varying business targets, so it was hard to achieve success.
However, just because the alliance was not successful does not mean the local retail industry cannot compete with foreign retailers, Tung explained.
A marketing expert said the revenue of local retailers has increased due to expansions of their retail system and attempts to approach more customers.
In addition, local retailers hold the advantage of knowing the shopping habits of domestic customers, whereas foreign firms have to conduct market studies for this information.
Firms face mixed fates on customs exemptions
Posco Vietnam and Keangnam Vina were delighted to receive tax breaks from the Ministry of Finance, while Doosan Vietnam was not so lucky.
The Ministry of Finance (MoF) has agreed not to apply administrative sanctions on Posco Vietnam’s failure to declare handling costs at customs.
According to the MoF Circular 40 dated May 21, 2008, companies must pay additional tax for not declaring handling charges at port.
However, in the case of Posco Vietnam, the MoF waived the charge because the company carried out good handling at its single-purpose port.
The MoF chose to give the company the benefit of the doubt in a situation where clear regulations do not exist.
However, regarding its incorrect declaration of deductible items from taxable value in declaration 63, the ministry ruled that the company had violated regulations on state management in customs and would receive no such reprieve.
Keangnam Vina, the Korean-backed developer of Vietnam’s tallest skyscraper, also received good news from the tax department.
In a document sent by Deputy Minister of Finance Do Hoang Anh Tuan, the MoF ruled that Keangnam Vina’s imported goods could not be produced domestically and that this has been confirmed by the Ministry of Planning and Investment under Document 2709 dated November 6, 2011. Under these circumstances, the products will be exempt from import tax as per Keangnam Vina’s request.
Korean-owned Doosan Heavy Industries Vietnam (Doosan Vina) on the other hand, was not treated so favourably when applying for tax breaks on their imported mechanical goods.
According to Circular 193 dated November 15, 2012 promulgating the preferential import and export tariff according to the list of taxable products for import tax incentives, the importer must register a list of imported goods to the customs department before the first customs declaration.
As Doosan Vina had not yet registered its products, it was therefore not eligible to enjoy import tax incentives, said the MoF.
EVN says handled huge losses, raises doubt for $1 bln profit
The Electricity Group of Vietnam (EVN), the country’s sole power distributor, hinted during a Friday meeting that they posted a VND4.4 trillion profit in 2012 and in the same year managed to handle VND18.2 trillion out of the VND38 trillion losses accumulated since 2011.
This has sent analyst and economic experts to doubt that the state-run utility raked in huge net incomes of around VND22 trillion, or roughly $1 billion, in 2012.
At a media meeting on Friday, the Ministry of Industry and Trade publicized the electricity cost price of EVN, but rejected question for EVN net incomes in 2012 and 2013.
Under an order from the Prime Minister, EVN should have its electricity cost price confirmed by the industry and trade and finance ministries to be allowed to hike power prices. The production cost must also be made public before the price increase is made.
According to the industry ministry, the power cost price in 2012 was VND1,322.55 per kWh, and the earnings of EVN that year were VND4.4 trillion. Also in 2012, the accumulated losses of EVN dropped to VND19.8 trillion, while just a year earlier, the figure was VND38 trillion.
This means VND18.2 trillion of the accumulated loss has been handled by EVN, while it still managed to report a VND4.4 trillion profit, suggesting that the real profit is much larger than just VND4 trillion.
But EVN chief refused to comment on the real net income of 2012.
Dinh Quang Tri, its deputy general manager, only confirmed that the accumulated loss in 2011 was as much as VND38 trillion, with VND12 trillion came as the company had to general power by fuel, and VND26 trillion from the forex rate differences.
Refusing to reveal how much the real net income was before handling the accumulated loss, Tri only said “fortunately, in 2012, supply from hydropower plants has soared, enabling EVN to make profits.”
Associate Professor and Doctor Ngo Tri Long, a price expert, said EVN could have enjoyed VND22 trillion worth of profits in 2012.
“That’s why they could handle the VND18.2 trillion loss while maintaining the VND4.4 trillion profit,” he said.
“Are EVN chiefs afraid that posting huge profits are inappropriate?” Long said, referring to the common lament of “incurring losses” EVN cited whenever it asked to increase power prices.
But Long said EVN should treat profits as good news as members of the public are unhappy seeing the state utility repeatedly posted losses.
“EVN should publicize its real profits to delight the public,” Long said.
As for the financial figures for 2013, Tri said EVN’s revenues this year are estimated at VND172 trillion, or around $8 billion, while profit would be only VND120 billion.
This is the profit left after EVN continue to handle the accumulated loss. The accumulated loss should be completely handled by the end of 2015 as ordered by the Prime Minister, Tri said.
But again, he did not say anything about the net income excluding the accumulated loss amount.
Leading mobile retailer prospers in 2013
Mobile World JSC, a leading mobile handset retailer in Vietnam, has marked extraordinary business results in 2013 despite continuing economic hardships.
Recently the company reported revenues of VND7.8 trillion ($372 million) for 2013 with profits nearly doubling those of 2012.
Each month the company’s leading digital and equipment superstores and website thegioididong.com sold an average of 300,000 handsets and 10,000 laptops, earning VND250 billion ($12 million).
Deputy general director Tran Kinh Doanh attributed this success to the firm’s nationwide expansion efforts along with its fresh customer-centric business approach.
Currently the system consists of more than 200 supermarkets throughout the country.
The staff have been trained to provide the highest quality customer service and are rewarded based on customer satisfaction.
“Our company has also sacrificed profits by providing some software and installation free of charge such as Lac Viet Dictionary and programmes for listening to music or watching films,” said Doanh.
This year also saw Mobile World invest considerable sums into its online services segment, upgrading desktop and mobile versions of its website to better service customers.
The company’s stores are the only retailers for the thegioididong.com website for mobile phones, resulting in nearly 10 million hits a month. It has achieved eminent international awards such as being listed among Vietnam’s top five e-commerce websites and among the top 500 leading retailers in the Asia-Pacific region in 2010, 2011, and 2012.
In terms of its business plan for 2014, the company’s northern sales manager Ngo Tan Tai said one of the company’s key strategic targets is to advance its superstore system to other major cities and test their presence in townships as well as rural and remote locations.
Notably, next year the company is planning to open 50 to 100 smaller stores in small townships to draw experience and find the best formula for greater involvement in rural areas.
The firm has the goal of opening 700 to 1,000 stores in countryside locations over the next five years.
Company executives also revealed their intention to list on Vietnam’s stock market in the first or second quarter, 2014, as well as launching new sales promotions.
“We really started focusing on a customer-centric business mentality in 2013 and believe we are in a position to achieve even greater results in 2014 under our dynamic service network,” said Tai.
Vietnam to slash import taxes for ASEAN-made vehicles
Beginning January 1, 2014, vehicles imported from 10 ASEAN countries to Vietnam will enjoy a tax cut ranging from 10-50 % following the ASEAN Trade in Goods Agreement (ATIGA).
Specifically, the tax rate for emergency cars and prisoner transport vehicles will range from 0 to 5%.
Following ATIGA, 4-seater to 9-seater cars imported from ASEAN countries to Vietnam will incur a tax of 50 % of the car’s value rather than the current 60%.
Trucks and other vehicles, depending on the type, will incur a new tax ranging from 0 to 50%.
Bicycle, motorcycle, and electric vehicle taxes will also decrease. Completely knocked down (CKD) cars will incur a tax from 0 to 50%.
Aircraft tax, which applies to airplanes and helicopters, will decrease to 0% starting from early 2014.
Japanese luxury car brand Lexus has officially entered the Vietnam market with 5 models launched at its recently-opened Lexus Saigon Center in downtown Ho Chi Minh City.
They include the $270,000 LS 460 L, one of the most expensive cars introduced at Vietnam Motor Show 2013 – the biggest annual expo for automobile industry – organized late October this year in Ho Chi Minh City’s District 7.
Lexus Vietnam has also introduced GS 350, RX 350, LX 570 with retail prices ranging from VND2.57 billion ($120,800)to VND5.35 billion ($251,500).
Representatives from the Japanese automaker said the construction of another official Lexus outlet in Hanoi is expected to be completed in the first half of 2014.
Hanoi Computer continues being found violating IPR
Officials from the Hanoi Department of Culture, Sports Tourism and the Police early this month conducted a joint inspection against Hanoi Computer located at 43 Lang Ha, Hanoi and found ASUS, LENOVO AND ACER computers and hardisks that were installed with unauthorised Microsoft software including Windows 8 pro, Windows 7 Ultimate and Microsoft Office Enterprise 2007.
Being one of the leading companies in the retail of IT products, but this is not the first time the company has been raided for violations of intellectual property rights. Previously on May 8, 2013, the local authorities discovered the unauthorised Microsoft software installations at its store located at 131 Le Thanh Nghi in Hanoi.
Hanoi Computer signed the Inspection Minutes to acknowledge its violation and admitted to using pirated software for their own business. Also, it committed to comply with the current regulations and to correct the violations in due course. Moreover, Hanoi Computer will face the administrative sanctions that are expected to be imposed shortly.
In recent years, many campaigns executed by the Vietnam Copyright Office, the Inspectorate of the Ministry of Culture, Sports and Tourism, and the Business Software Alliance to help change Vietnamese people’s perception, habit on using legal software as well as increase their awareness of respecting IPR laws which have positive impacts on creating a healthier ICT industry to contribute to the development of the whole national economy.
SMEs shaken by import ban on older machinery
Despite Vietnam’s call for investment from Japanese small and medium enterprises to develop supporting industries, Japanese investors have complained that unclear regulations limiting the import of used machinery and equipment is deterring them from investing.
Chikara Fujita, an official at the Japanese region of Kansai’s Bureau of Economics, Trade and Industry at a recent meeting between Kansai-based enterprises and the Ministry of Planning and Investment (MPI), said that Japanese small and medium enterprises (SMEs) were concerned over the unclear regulations related to the import of second-hand machinery in Vietnam.
“The unclear regulations seem to discourage foreign SMEs from investing in Vietnam. As most of them are operating in supporting industries, this will negatively affect the economic development of Vietnam,” said Fujita.
Last November, the Vietnamese government issued a decree guiding the implementation of the Commercial Law which involved clauses related to the trade of second-hand machinery. The regulation meant the Ministry of Sciences and Technology (MST) was tasked with setting the criteria for imported second-hand machinery.
But the new criteria have yet to be set, and while waiting, the import of second-hand machinery needs MST approval, delaying projects.
Do Hoai Nam, director of the MST’s Department of Technology Appraisal, Examination and Assessment said the new criteria would be aimed at limiting outdated equipment imports into Vietnam.
“It is necessary to limit the import of older machinery, but the procedures should be simple. The complicated and unclear regulation is delaying many Japanese projects here,” Fujita said.
Yoshilo Kobayashi, an official at Kansai Economic Federation’s International Committee said the new regulation would prevent Japanese SMEs from investing in Vietnam.
“Many Japanese enterprises want to relocate production from China to Vietnam. If Vietnam tightens criteria for importing second-hand machinery this will hamper their investment plans,” said Kobayashi.
Mitsuhiko Lino, president of Toyo Drilube Company – which is building a manufacturing plant in the northern province of Ha Nam, said many small and medium investors had to use second-hand machinery and equipment because of limited finances.
“It’s expensive to buy the newest equipment. The Vietnamese government should resolve this issue,” said Lino.
“We’re currently considering allowing the import of machinery which is up to five year’s old and maintains 80 per cent of its quality,” said Nam. However, he failed to provide any indication when the guidance would be issued.
Sluggish $1.5 billion power plant finally adds EPC contractors
The construction of the Long Phu 1 thermal power plant, which has undergone over three years of delays, finally received positive news last week when new partners were agreed upon to implement the engineering procurement construction contract.
The engineering procurement construction (EPC) contract was signed between PetroVietnam – the project investor and a consortium consisting of Power Machines (Russia), BTG Holding (Slovakia) and PetroVietnam Technical Service Corporation (PTSC).
During a recent press meeting in Hanoi, PetroVietnam chairman Phung Dinh Thuc stated that the addition of new partners to the EPC contract for Long Phu 1 was reasonable.
He said, “Despite PTSC being a strong corporation, this is a large-scale project, so we had to seek co-operation from other contractors.”
The EPC contract was previously assigned to PTSC in 2010. At the time, PTSC announced plans to put the first unit of the plant into commercial operation after 39 months (in 2014) and to finish the entire plant after 45 months (early 2015).
However PTSC’s objectives became evermore distant. Many reasons were given for the delays, of which the most important was the actual capacity of the general contractor, including the necessary experience and the ability of subcontractors to provide key elements.
Facing slow project progress, during the past two years, the Ministry of Industry and Trade was assigned by the government to ask PetroVietnam to seek additional contractors.
When complete, the Long Phu 1 power plant will have the generation capacity of 1,200MW, and will be one of three plants at the Long Phu Power Centre, with a total capacity of about 4,400 MW. When fully completed the complex will supply 7.8 billion KWh per year to the national power grid.
Banks target familiar clients to boost credit
Instead of offering cheap loans to all potential clients to simulate credit growth as had been done in 2012, commercial banks towards the end of this year are instead targeting clients with specific credit packages.
LienVietPostBank agreed to provide a VND2 trillion ($95 million) loan for the PetroVietnam-invested Vung Ang 1 Thermal Power Plant this month.
Vietcombank and SeABank this month signed a credit agreement worth $150 million with Petrovietnam Exploration and Production Corporation. Vietcombank will provide 83.5 percent of the funding with the remaining $24.75 million covered by SeABank.
TPBank signed an agreement providing VND2 trillion ($95 million) to Vietnam Railways to bolster the company’s working capital.
Sacombank, Agribank, MHB, OCB, Military Bank, ACB, NamABank, Navibank, VietinBank and DongABank also granted VND289 billion ($13.7 million) to 34 enterprises in Ho Chi Minh City’s Go Vap district alone.
While this is by no means a new approach, targeted credit packages have become more common this year. At the end of last year, to meet the greater year-end demand for capital, many banks offered VND1 trillion-VND10 trillion ($47.5 million-$475 million) in loans at 7-9 per cent interest. However, disbursement was slow as many firms could not afford to take on extra debts.
According to experts, targeting specific customers with real need for capital will help banks ensure their credit growth for the future. The agreements are also often characterised by long-term mutual benefits, including the banks providing additional financial services.
In addition, this closer co-operation means greater trust and the likelihood that banks will be inclined to extend credit to other projects.
When talking about the recent PetroVietnam-LienVietPostBank credit agreement, PetroVietnam’s chairman Phung Dinh Thuc said this was the first project between the state-run oil and gas giant and the bank. PetroVietnam was implementing several petrochemical, industrial gas and electricity projects and LienVietPostBank would act as one of the group’s most important financing partners.
However, Dang Ngoc Ha, strategy deputy director of VietA Bank said the approach might meant that capital would fail to be allocated effectively if banks tended to only focus on major clients, especially enterprises with close relationships to the banks.
However, Governor of the State Bank of Vietnam Nguyen Van Binh praised the move, claiming credit growth might hit 10 per cent by the end of the year.
The Vietnam Asset Management Company (VAMC) also bought nearly VND35 trillion ($1.66 billion) of non-performing loans (NPLs), which had acted as a barrier for credit growth. “The purchase of NPLs, together with efforts to restructure debts and settle NPLs via greater risk provision has contributed to GDP growth of 5.4 per cent this year,” said Binh.
Stock market offers rich opportunities
With a gradual improvement in the economy, many experts believe that the stock market could be the most attractive investment channel in the new year.
Based on the economy’s results this year in conjunction with the predicted effects of the government’s policies next year, experts believe that the real estate market will not necessarily experience an easy recovery and the gold and foreign currency markets are likely to remain tightly controlled.
Financial expert Nguyen Tri Hieu was upbeat about the stock market’s prospects. “In a positive scenario, the VN-Index will increase by at least 30 per cent compared with the end of 2013, equal to 600-650 points in 2014,” he said.
The attractiveness of the stock market is said to be result of positive macroeconomic developments.
According to economist Vu Dinh Anh, a low consumer price index (CPI) has helped create the conditions to stabilise the macro economy and implement solutions to enhance gross domestic product (GDP) growth in 2014. Anh claimed the GDP growth of 5.8 per cent and the CPI target of 7 per cent next year were quite achievable. These indicators were sufficient grounds for optimism about the stock market, he claimed.
The more healthy economy would also help listed companies recover. Tran Van Dung, chairman and general director of Hanoi Stock Exchange (HNX) said inventories among listed firm were decreasing, their losses were smaller and profits higher. In the coming time, as the economy recovered more, listed enterprises would post brighter profit forecasts.
“These will be the basic factors that will help the stock market in 2014, thereby offering more attractive investment opportunities to investors,” said Dung.
Tran Quang Vinh, investment director of Thien Viet Securities Company said the stock market was recovering well with improved liquidity and was receiving greater interest from foreign investors.
An additional factor that could point to a resurgence of the stock market next year included the potential lifting of the 60 per cent cap for foreign share ownership for listed companies, which was mentioned in the draft decision submitted to the prime minister by the State Securities Commission last November.
“In addition, the positive progress in negotiating the Trans Pacific Partnership (TPP) might generate sharp changes in the stock market in 2014,” said Tran Minh Hoang from Vietcombank Securities Company.
Grounds for optimism as market thaws
The residential for sale market is ending the year with signs of recovery.
The Ho Chi Minh City residential market segment seems to be showing signs of a cautious revival. Buyer interest has increased off the back of cheaper credit and valuations almost falling to cost price, bolstered by a rash of incentive programmes.
According to figures from CBRE, prices over the wider apartment for sale market fell some 30 per cent compared to their peak in 2007, and prices and have now reached levels deemed to be what the market feels is affordable.
Well located good quality developments are registering higher sales. Those include the Estella, Vista, Sunrise City and Nam Long’s E-home projects.
The catalyst appears to be discounts and extended payment terms that allow buyers to make payments over three to five years and furniture packages. Higher sales in these projects have been consistently reported since early this year, and this trend is expected to continue into next year.
Meanwhile, the Hanoi residential market after a year of remarkable price cuts has seen developers promote bare-shell products.
Popular developments have included Mulberry Lane and Mandarin Garden. A series of low-end projects with thousands of small sized units at affordable prices have also seen a peak in sales, including Golden Silk, Tan Tay Do and Sails Tower.
Dang Ngoc Chau, senior manager for residential project marketing at CBRE, said after the stagnation of recent years, the residential market in Ho Chi Minh has turned into a property buffet party for residential purchasers.
“The weak market has spurred a range of incentive programmes that have sparked some interest. Hanoi developers have offered early hand-over arrangements and improved project utilities and offered reduced or free management fees. Vingroup’s Royal City and Time City projects offered buyers a 10-year exclusion on management fees which helped stimulate buyer interest. Hanoi buyers are still however adapting a wait and see approach,” said Chau from CBRE.
In Hanoi, recent months have reflected a remarkable increase in residential selling, especially for mid and low-end housing
A range of projects have been opened for sale in the market, such as Tan Tay Do, Van Phu, Sky Garden, Golden West, Discovery Complex and many others.
According to experts, the key factor remained price. Developers who understood that demand for mid and low-end residential remained very high and were focusing on developing projects for this market segment would do well.
According to Trinh Dinh Dung, Minister of Construction, property inventories compared to the same period of last year had fallen.
Figures from Ministry of Construction revealed that unsold residential developments had remarkably reduced in the closing months of 2013.
Despite the end of the year prediction that VND96,800 billion of property would still remain in stock, this figure was 25 per cent lower that in the first quarter of the year.
However Dung added that positive signs could be seen in the low-end and social housing projects. Transactions in this segment had doubled compared to the first two quarters of the year.
Nam Long builds social housing provider reputation
Nam Long Investment Joint Stock Company is due to announce new foreign investors, in addition to its three current strategic partners- ASPL, Nam Viet Limited and Mekong Capital.
Nam Long Investment’s (NLG) newly appointed general director Nguyen Vinh Tran said the name of the new foreign partner, who bought over 25 million shares, would be released in January, despite the agreement being reached in October.
Earlier, when NLG announced the sale of shares to raise capital two months ago, 13 organisational investors expressed an intention to register to purchase shares. This included eight foreign investors; prestigious names like the International Financial Corporation, VinaCapital Opportunities Fund, Dragon Capital, Fujiwara Advisory Singapore Pte Ltd (Bridging Capital) and Orix Capital.
In the context of the property market doldrums and listed property firms’ poor share liquidity, the eager participation of investors into NLG’s plan to gain capital through share issuance has come as a surprise.
Mekong Capital managing director Chris Freund once said bothering with financial indexes was the story of short-term investors, whereas to organisational investors, factors like professional management, a lucid development strategy and transparency were decisive when making investment decisions.
Market observers assumed that with a share value of over VND17,000 ($0.81) per unit, the company’s shares were not the first choice to individual short-term investors, since scores of listed firms have seen their shares sink below the face value of VND10,000 ($0.47) per unit. In addition, within the context of a property market that has yet to rebound, receiving a good share price is no mean feat.
NLG has not only been calling for the engagement of foreign shareholders, the firm has also created co-operative investment opportunities for its projects. In November 2013, Indochina Land contributed a 35 per cent stake and joined with NLG to develop the mid-end EHome 3 West Saigon apartment project.
Indochina Land Holdings CEO Peter Ryder said NLG’s sound steps and strong commitment towards the brand were why they had teamed up with the company for the promotion of the EHome development.
EHome 3 properties have sold well in recent months and this is reflected by the fact that all the units in phase 1A of the development have been sold. The developer has also been able to hand over apartments to customers a month earlier than scheduled.
“We saw NLG’s long term vision with its plan of building 14,000 mid-end quality EHome apartments in the next five years and on top of that, these products match the needs of most local residents,” said Ryder.
NLG’s general director Nguyen Vinh Tran, who has a wealth of experience working in an international environment said, unlike many other firms, NLG has made strides to improve sales and co-operate with other domestic and foreign partners to develop new housing projects, despite the difficult real estate market.
Five years after the launch of affordable housing projects, NLG has developed a reputation as an expert in affordable housing development with 1,300 housing units having been sold so far.
According to a company source, the company will roll out a further 10,000 EHome apartments in the next three years. Tran, however, said that this was only a drop in the ocean. Ho Chi Minh City alone would need around 70,000-80,000 housing units annually and this was a vast market for the company and its wealthy partners to tap, particularly once the market revives.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
Prime Minister Lee Hsien Loong said, “The European and American economies are… Read More
Prime Minister Lee Hsien Loong said, “The European and American economies are stabilizing. Asian prospects are still positive, but there are problems and tensions.” Close
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Photographer: Kiyoshi Ota/Bloomberg
Prime Minister Lee Hsien Loong said, “The European and American economies are stabilizing. Asian prospects are still positive, but there are problems and tensions.”
Singapore’s growth quickened in 2013
and the country is making progress in economic restructuring
while strengthening social safety nets, Prime Minister Lee Hsien Loong said.
Gross domestic product rose 3.7 percent last year, Lee, 61,
said in his New Year message released yesterday. That’s in line
with the government forecast of 3.5 percent to 4 percent growth
and compares with the median in a Bloomberg News survey of
economists for a 3.55 percent expansion. The economy grew 1.3
percent in 2012.
“The European and American economies are stabilizing,”
Lee said. “Asian prospects are still positive, but there are
problems and tensions,” he said, citing regional geopolitical
disputes.
Singapore’s economic acceleration last year had been aided
by recoveries in the U.S. and Europe, while companies in the
city-state adjusted to rising business costs and curbs on cheap
foreign labor. The island’s trade promotion agency said in
November exports will rebound this year after contracting in
2013, easing pressure on the central bank to allow the currency
to weaken to support overseas shipments.
Lee reiterated a forecast for the economy to grow 2 percent
to 4 percent in 2014. U.S. consumer confidence is at a four-month high and euro-area factory output grew at a faster pace
than economists forecast in December.
“This is consistent and fits into a story of a gradual
recovery,” said Vishnu Varathan, a Singapore-based economist at
Mizuho Bank Ltd. The central bank “needs to maintain the
current policy with much lesser scope for easing, especially if
the global recovery continues,” he said.
The 2013 growth rate given by Lee implies Singapore’s
economy grew between 4.1 percent and 4.5 percent in the fourth
quarter from a year earlier, Varathan said. The median estimate
in a Bloomberg survey is 4.8 percent.
Singapore’s trade ministry will release preliminary fourth-quarter GDP (SGDPQOQ) figures at 8 a.m. local time tomorrow. The economy
probably shrank an annualized 1.3 percent from the previous
three-month period, according to the median of 11 economists
surveyed by Bloomberg.
The Singapore dollar dropped more than 3 percent against
its U.S. counterpart last year, the biggest annual decline since
2001. The benchmark Straits Times Index of stocks was little
changed in 2013, making it the worst-performer among developed
markets.
Lee said the government is “working steadily” toward new
directions for the country, including strengthening social
safety nets and sharing “fruits of progress more widely”
through support for low-wage earners and homeownership programs.
The island’s population has jumped by more than 1.1 million
since mid-2004 to around 5.4 million, leading to voter
discontent over congestion and competition for housing. The
government has tightened restrictions on foreign workers for
four straight years, a move that has led to a labor crunch and
hurt businesses.
A riot last month involving about 400 people in an area
popular with South Asian foreign workers was “inexcusable,”
Lee said yesterday. The incident occurred after a fatal traffic
accident and was the nation’s first riot in more than four
decades, reigniting the debate about Singapore’s dependence on
overseas laborers.
“Whether we bring in more immigrants and foreign workers
or fewer, whether we aim for higher growth or lower, there are
no easy choices for Singapore,” Lee said. “We are taking a
balanced approach, reducing but not cutting off the inflow of
foreign workers.”
To contact the reporter on this story:
Sharon Chen in Singapore at
schen462@bloomberg.net
To contact the editor responsible for this story:
Stephanie Phang at
sphang@bloomberg.net
Adventure and a touch of the gourmet lifestyle will shape the holiday plans of travellers in 2014.
Flight Centre has issued its top 10 inspirational hotspots for 2014. The list, created by Flight Centre’s team of experts, is compiled according to three factors including what the company believes to be emerging hotspots, what its customers are enquiring about and what the travel industry is offering next year.
Flight Centre New Zealand’s general manager of retail, Sue Matson, said the majority of the 2014 inspirational hotspots were selected based on growing demands from customers wanting more out of their holiday itinerary.
“Adventure and gourmet travel are high on the priority list for customers and we expect these trends to continue to soar,” Ms Matson said.
“Stop and flop holidays will always be a crowd pleaser, but we are also noticing our customers want more out of their holiday and a sense of adventure or a touch of gourmet are two ways of achieving this.”
1. BRAZIL
Travellers will score big time exploring Brazil in 2014 as the country celebrates its status as host of the 2014 FIFA World Cup and gears up for the Olympics in 2016.
Brazil is a sexy destination all about its samba music, soccer stars and supermodel beauties strolling the streets. It is also a land of juxtaposition with wild parties and wild jungles, adventure one minute, siesta the next.
Brazil is also the perfect destination for voluntourism, and as that holiday type itself surges in popularity, so too will the popularity of Brazil and, particularly, projects in the Amazon jungle.
INSIDER TIP: Brazil’s true colours shine during the vibrant annual Carnaval, so if the timing works for your travel plans jump at the chance to head to the Carnival Capital of the World, Rio de Janeiro during February – March.
2. SINGAPORE
No longer just a stop-over hub, Singapore is a fully-fledged tourism hot spot. A manageable flight time, strong dollar and an all-year round 30 degree climate are just the tip of the iceberg.
Even if you were there three years ago, you’ll notice a very different Singapore today.
From traditional hawker street food markets to the glamour of some of Asia’s best rooftop bars and designer shops, Singapore is a multi-faceted destination offering travellers the perfect blend of history, culture, arts and adventure. And thanks to a strong economy and subsequent ex-pat community, Singapore is as cosmopolitan as they come.
Travellers will get a kick out of Sentosa Island, a purpose-built island complete with theme park, hotel, adventure experiences and connecting monorail.
For those looking to take in the cosmopolitan side of Singapore a visit to Little India, Arab Street and Club Street will unveil the many different cultures of Singapore.
INSIDER TIP: The famous Singapore Sling at Raffles Hotel is the single must-do on any traveller’s list. Rudyard Kipling famously wrote The Jungle Book while sipping one himself in the hotel and its magnificent facade is steeped in colonial heritage.
3. SHANGHAI
China’s cosmopolitan darling, Shanghai is often forgotten as travellers traditionally flock to Beijing to see the Great Wall and the Terracotta Warriors. But Shanghai is in a league of its own.
Shanghai offers a different perspective, from ancient to modern and East to West.
In 2013, passport holders of 45 countries and regions including New Zealand were granted a visa-free transit stay of up to 72 hours when taking an international transfer via airports. As travellers embrace the flexibility and convenience of visa travel in China, Flight Centre predicts a surge in popularity for a Shanghai stopover.
INSIDER TIP: The Bund is a famous waterfront strip regarded as the symbol of Shanghai and perfect for people-watching, great restaurants and chic bars.
4. NEW ORLEANS
The US city of New Orleans certainly has many new things on offer, but its unique quirks are stepped in tradition and cultural heritage.
Founded by the French, briefly ruled by the Spanish and called home by the Haitians in the early 1800s, New Orleans has a vibrant history and is the most European city in America.
New Orleans has never been easier to access from New Zealand with all major US hubs servicing New Orleans, including Los Angeles, San Francisco, Dallas and Houston. It is also one of the most walkable cities, with more than 1,300 restaurants, award-winning museums and premier tours and attractions, all scattered throughout the historic French Quarter, CBD and Warehouse District.
From jazz tunes to local cuisine, New Orleans has an array of treats for travellers to sample. They say ‘Gumbo’, a soup made of local seafood such as shrimp, crabs and crawfish, is a tasty metaphor of New Orleans culture.
INSIDER TIP: Hit the cobblestone streets running and take a walking tour of the cultural hub of New Orleans, the French Quarter. With its old world shops and building facades a walking tour offers a great insight into the history of New Orleans and is much more fun than just driving by.
5. SOUTH AFRICA
South Africa is the great all-rounder perfect for all traveller types where you can seek adventure, adrenalin, romance, family time or food and wine indulgence.
South Africa’s tourism market is expected to continue to move from strength to strength in 2014 with improved infrastructure across the industry playing its part in improving travellers’ experiences.
Domestic travel within South Africa will also be even easier and more accessible, especially around the Kruger region, with the planned re-opening of the Skukuza Airport in the Kruger National Park in May 2014.
For a history lesson, a visit to the township of Soweto will give travellers a strong sense of the story behind the apartheid struggle, while Newtown will show off the artistic flare of the culture today.
INSIDER TIP: Well-known for its “Big Five” – the lion, elephant, buffalo, leopard and rhino – you can spot them at any of the numerous safari lodge options available. But along with the Big Five, you can spot another big one off the Western Cape coast where cage diving with great white sharks is growing in popularity.
6. COSTA RICA
A Central American eco-hub that won’t costa lot! Budget conscious travellers are expanding their horizons with more affordable airfare pricing over the past few years making USA, South America and Central America all much more viable holiday options.
Costa Rica is one of the 20 richest countries in biodiversity and eco-conscious travellers will delight in exploring the rainforests, active volcanoes, thermal hot springs, beautiful beach and a thriving marine surface.
From canopy tours to diving and white water rafting, Costa Ricans know how to show off their assets and travellers with a passion for Mother Nature will find this place a wonder to behold.
INSIDER TIP: 30kms from San Jose, Costa Rica’s capital lies the most active of all Costa Rica volcanoes. Irazu is a colossal giant and on a clear day both the Pacific and Atlantic oceans are visible from its peak.
7. SOUTH AUSTRALIA
From the vibrant atmosphere of cosmopolitan Adelaide to the pristine beaches of Kangaroo Island and the world-famous wine region of the Barossa, South Australia truly offers something for everyone from adventure to avant-garde.
South Australia is a cultural haven for tourists looking to experience award winning wines, food and some of the most spectacular scenery in Australia.
There’s never been a better time to capitalise on the gourmet delights of South Australia as Adelaide is undergoing a transformation with access from all major airports around Australia now available.
INSIDER TIP: Just across the ditch but a world away, Kangaroo Island is 509kms of coastline with native bushland, wildlife, pristine beaches, local wines and spectacular sunsets.
8. NEW CALEDONIA
France is only a few hours away, who knew?
The glamour of France with the hospitality of the South Pacific, New Caledonia is steeped in French colonial history yet has the beach vibe and culture of a South Pacific Island.
Key to its growing popularity with guests is its proximity to New Zealand soil, with a flight time of under three hours from Auckland.
INSIDER TIP: New Caledonia is a cosmopolitan city with restaurants, bars, night clubs and casinos all on offer, but travellers can seek tranquillity on the islands of Ouvea, Isle of Pines and Lifou.
9. EXPEDITION CRUISING
Travellers looking for adventure are setting sail on expedition cruises to get closer to the action. Think Antarctica, the Kimberley, the Amazon, Galapagos Islands and Arctic Norway.
In recent years, expedition cruise bookings have grown in size and Flight Centre predicts this trend to increase in 2014 with the most popular expedition cruise choices for 2014 to be the Kimberley, Norway and Galapagos Islands.
Very different to traditional cruising, expedition cruises are dedicated to helping passengers learn all about the history and culture of the remote destinations they’re visiting. An overnight docking might involve spotting wildlife at dawn on the water’s edge or a visit into remote Papua New Guinean territory to see a local tribe perform a century old ceremony.
INSIDER TIP: While shore excursions are based on different interests and fitness levels, mobility is a must for most expedition cruises as many stops are wet stops, where passengers disembark on to smaller vessels and sail to shore or explore in the water.
10. BHUTAN
Monks, mountains and modernisation summarise the Kingdom of Bhutan in South Asia.
Tucked away in the Eastern Himalayas between India and China, Bhutan offers travellers a wonderful blend of ancient Asian civilisation with a touch of Himalayan adventure.
Bhutan is potentially one of the happiest places on earth. In 1971 the King famously coined the term Gross National Happiness and it’s been used in Bhutan ever since as a philosophical measurement of economic development instead of Gross Domestic Product.
If the old King’s views on economic progression are anything to go by, you know you’ll be greeted with friendly faces and a positive outlook on life in Bhutan.
Flight Centre predicts the surge in its double dip airfares, two airfares for one low price, will see more travellers add a Bhutan stopover to their Thailand, Singapore or India itineraries.
INSIDER TIP: Bhutan’s geographic location and unique climatic variations make it one of the world’s last remaining biodiversity hotspots. Conservation is key and there are a number of national parks and wildlife sanctuaries showcasing endangered animals, birds and plants to raise awareness.
For more information on great holiday destinations for 2014, check out Flight Centre’s New Year Sale. Contact the team at Flight Centre on 0800 427 555 or visit www.flightcentre.co.nz
Key benchmark indices eked out small gains on the last trading session of 2013. The barometer index, the SP BSE Sensex, garnered 27.67 points or 0.13%, up 48 points from the day’s low and off 60.20 points from the day’s high. The market breadth, indicating the overall health of the market, was positive. Gains in Asian and European stocks supported domestic bourses.
The Sensex garnered 378.75 points or 1.82% in December 2013. The barometer index clocked a gain of 1,743.97 points or 8.97% in calendar 2013. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,721.97 points or 21.33%. From a record high of 21,483.74 hit on 9 December 2013, the Sensex is off 313.06 points or 1.45%.
The 50-unit CNX Nifty garnered 127.90 points or 2.07% in December 2013. The index registered a gain of 6.75% in calendar 2013.
The BSE Small-Cap index garnered 451.61 points or 7.4% in December 2013. But, the index registered a massive loss of 11.23% in calendar 2013. The BSE Mid-Cap index surged 379.98 points or 6% in December 2013. But, the index registered a loss of 5.72% in calendar 2013.
Coming back to today’s trade, shares of power generation and power distribution companies edged higher. Among IT stocks, Wipro scaled 52-week high. Index heavyweight Reliance Industries (RIL) rose. Another index heavyweight and cigarette major ITC edged lower in volatile trade. FMCG stocks declined. Shares of Tata group organized retailer Trent edged higher after the Foreign Investment Promotion Board (FIPB) on Monday, 30 December 2013, approved UK-based Tesco Plc’s proposal to enter the Indian multi-brand retail segment in joint venture with Trent. Shares of other organised retailers also rose.
Metal stocks edged lower. Shares of Apollo Tyres surged after US based tyre maker Cooper Tire Rubber Company on Monday, 30 December 2013, announced that it has terminated the merger agreement with Apollo Tyres. Shares of local search engine Just Dial scaled record high. Tata Communications hit 52-week high.
Foreign institutional investors (FIIs) bought shares worth a net Rs 130.30 crore from the secondary equity markets on Monday, 30 December 2013, as per data from Securities Exchange Board of India.
The SP BSE Sensex garnered 27.67 points or 0.13% to settle at 21,170.68, its highest closing level since 27 December 2013. The index rose 87.87 points at the day’s high of 21,230.88 in early trade. The index fell 20.33 points at the day’s low of 21,122.68 in morning trade.
The CNX Nifty garnered 12.90 points or 0.21% to settle at 6,304, its highest closing level since 27 December 2013. The index hit a high of 6,317.30 in intraday trade. The index hit a low of 6,287.30 in intraday trade.
The total turnover on BSE amounted to Rs 1646 crore, lower than Rs 2561.37 crore on Monday, 30 December 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,497 shares gained and 1,060 shares fell. A total of 162 shares were unchanged.
The BSE Small-Cap index rose 0.72% and the BSE Mid-Cap index gained 0.32%. Both these indices outperformed the Sensex.
The SP BSE Power index (up 0.6%), the SP BSE Oil Gas index (up 0.52%), the SP BSE PSU index (up 0.32%), the SP BSE Healthcare index (up 0.21%), the SP BSE Capital Goods index (up 0.21%), the SP BSE Consumer Durables index (up 0.18%), the SP BSE Realty index (up 0.17%), the SP BSE IT index (up 0.16%), the SP BSE Teck index (up 0.16%) outperformed the BSE Sensex.
The SP BSE Bankex (up 0.12%), the SP BSE Auto index (up 0.05%), the SP BSE FMCG index (down 0.06%) and the SP BSE Metal index (down 0.21%) underperformed the BSE Sensex.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC fell 0.5% to Rs 320.80. The stock hit a high of Rs 324 and low of Rs 320.50.
FMCG stocks declined. Britannia Industries (down 0.32%), Colgate-Palmolive (India) (down 0.59%), Dabur India (down 0.35%), Hindustan Unilever (down 0.2%), Marico (down 1.48%) and Nestle India (down 0.97%) edged lower. Godrej Consumer Products rose 0.68%.
Index heavyweight Reliance Industries rose 0.98% to Rs 894.05. The stock hit a high of Rs 898 and low of Rs 886.10.
ONGC shed 0.14%. ONGC Videsh, through its affiliates has acquired an additional 12% Participating Interest (PI) in Block BC-10, a deepwater offshore block in Campos Basin, Brazil taking its total PI in the block to 27%. The operator, Shell now holds the balance 73% PI in the block.
ONGC Videsh had acquired 15% PI in Block BC-10 in 2006. In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35% PI in the block. This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23% PI and 12% PI respectively. On approval of the Brazilian regulatory authorities for acquisition, the transaction has been completed on 30 December 2013, ONGC said in a statement today, 31 December 2013. ONGC Videsh has paid a purchase consideration of $561 million for 12% stake in the block. ONGC Videsh is a wholly-owned subsidiary of ONGC.
The Block BC-10 also known as Parque das Conchas is in Campos Basin of Brazil and includes 4 offshore deep-water fields — Ostra, Abalone, Argonauta and Nautilus and a few identified exploration prospects. The block is in the deep-waters of Brazil in the water depths ranging from 1,500 to 1,950 meters. The project is being developed in three phases. Production from Phase I started in year 2009. The Phase II of the Project has come on stream in October 2013 with an expected peak production of about 35,000 barrels of oil equivalent per day (boepd) in 2014. The current oil production from the block is about 50,000 boepd. The Phase III is to come on stream in 2016 with expected peak production of about 28,000 boepd in 2017. The production from all the phases is expected to be about 75,000 boepd in 2017.
IT stocks were mostly higher. TCS gained 0.66% to Rs 2,172.
HCL Technologies rose 1.55% to Rs 1,267.40. The stock had hit record high of Rs 1,269 in intraday trade on Monday, 30 December 2013. The company on 27 December 2013 announced that Vineet Nayar, Director of the company since 2008, has decided to retire from the board in order to devote more time to his Foundation. HCL Technologies also announced on Friday, 27 December 2013, the appointment of Vineet Nayar as a Senior Advisor to HCL Technologies and HCL Corporation.
As a Senior Advisor, Vineet will advise HCL Corporation on key strategic issues and also work with the board of HCL Technologies on initiatives such as driving a high performance culture amongst senior managers and new strategies for growth.
Wipro rose 1.25% to Rs 559 after hitting 52-week high of Rs 561.25 in intraday trade.
Tech Mahindra fell 0.4% to Rs 1,839. The stock had hit 52-week high of Rs 1,875 in intraday trade on Monday, 30 December 2013.
Infosys shed 0.62% to Rs 3,480. The stock had hit record high of Rs 3,575 in intraday trade on Monday, 30 December 2013.
Auto stocks were mixed. Maruti Suzuki India declined 0.84%. MM fell 0.6%, with the stock falling for the second day in a row. Ashok Leyland was unchanged at Rs 17.15.
Tata Motors rose 0.48%.
Shares of two-wheeler majors — Bajaj Auto and Hero MotoCorp–edged higher. Bajaj Auto rose 0.48%. Hero MotoCorp gained 0.36%.
TVS Motor Company fell 3.74% on profit booking. The stock had surged 14.84% on Monday, 30 December 2013.
Shares of Apollo Tyres jumped 5.77% to Rs 107.15 after US based tyre maker Cooper Tire Rubber Company on Monday, 30 December 2013, announced that it has terminated the merger agreement with Apollo Tyres. The stock witnessed high intraday volatility. The stock hit record high of Rs 113 at the onset of the trading session. The stock hit low of Rs 102.55 in intraday trade. High volumes accompanied the rally in the stock. On BSE, 59.32 lakh shares changed hands in the counter, compared with average daily volume of 10.54 lakh shares during the past one quarter.
Cooper Chairman, Chief Executive Officer and President, Roy Armes, said: “It is time to move our business forward. While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available. The right thing for Cooper now is to focus on continuing to build our business. Our business model is strong, and despite the challenges this year, we are coming off record operating profit through the first half of the year and expect to continue to be profitable for the second half, ending the year with a strong balance sheet. We look forward to continuing to execute on our strategy in 2014, and we have a very strong base from which to do this-brands that are respected for quality, a loyal customer base, a flexible global network of manufacturing facilities, a skilled workforce, and top technical capabilities”.
“While Cooper believes Apollo has breached the merger agreement, and we will continue to pursue the legal steps necessary to protect the interests of our company and our stockholders, our focus will be squarely on our business and moving it forward,” Armes said.
“Addressing the situation at Cooper Chengshan Tire (CCT) in Rongcheng, China is our top priority in the near term. The issues at CCT were driven by the merger agreement, and with the agreement now terminated, Cooper is working independently to restore normal operations at CCT, including obtaining the information needed for Cooper to resume regular financial reporting as soon as possible. Once the situation at CCT is resolved and regular financial reporting has resumed, Cooper will be in a position to address additional options for the deployment of capital targeted at returning value for our stockholders,” he added.
Apollo Tyres on Monday, 30 December 2013, issued a press statement in response to Cooper Tire Rubber Company’s decision to terminate merger agreement with Apollo Tyres. The company said that the management is disappointed as Cooper has prematurely attempted to terminate the merger agreement. While Cooper’s lack of control over its largest Chinese subsidiary — Cooper Chengshan Tire Company — and its inability to meet its legal and contractual financial reporting obligations has considerably complicated the situation, Apollo has made exhaustive efforts to find a sensible way forward over the past several months, Apollo Tyres said. However, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both the companies and their shareholders, Apollo Tyres said. Cooper’s actions leave Apollo no choice but to pursue legal remedies for Cooper’s detrimental conduct, Apollo Tyres said.
“Importantly, Apollo has many other compelling growth opportunities around the world that we are continuing to pursue. Our business is performing well, as evidenced by the strong top line and bottom line results we reported last quarter and we remain focused on executing our standalone strategic plan to maximum value for Apollo’s shareholders. We are confident that Apollo is well positioned for continued success”, Apollo Tyres said.
Shares of power generation and power distribution companies edged higher. Power Grid Corporation of India (up 0.51%), GVK Power Infrastructure (up 1.5%), Tata Power Company (up 2.53%), NTPC (up 0.4%), Reliance Infrastructure (up 0.27%), Torrent Power (up 2.71%), JSW Energy (up 2.92%), and Reliance Power (up 0.21%) gained.
Shares of power finance firms rose. Power Finance Corporation (up 4.02%) and Rural Electrification Corporation (up 3.96%) gained.
Bank stocks were mostly in green. Among PSU bank stocks, Union Bank of India (up 2.27%), Bank of India (up 1.27%), Bank of Baroda (up 0.56%) and Punjab National Bank (up 0.26%) gained.
State Bank of India (SBI) slipped 0.08%
Canara Bank rose 2.02%. The state-run bank after market hours on Monday, 30 December 2013, announced increase in lending rates. The bank has raised its base rate to 10.20% from 9.95%, with effect from 1 January 2014. The bank has raised its benchmark prime lending rate (PLR) to 14.45% from 14.20% from 1 January 2014.
The state-run bank also announced increase in term deposit rates for the maturity bucket 180 days to 269 days, to 7.4% from 7%, for deposits of less than Rs 1 crore. The hike in rate is effective from 1 January 2014.
ICICI Bank (up 0.34%) and AXIS Bank (up 1.12%) gained. HDFC Bank dropped 0.57%.
Metal stocks edged lower. JSW Steel (down 0.71%), Jindal Steel Power (down 0.8%), Sesa Sterlite (down 0.72%), Hindustan Zinc (down 0.11%), National Aluminum Company (down 0.53%), Tata Steel (down 0.48%), Hindustan Copper (down 0.28%), NMDC (down 0.07%) and Sail (down 0.34%) edged lower. Hindalco Industries rose 0.58%.
Shares of Tata group organized retailer Trent edged higher after the Foreign Investment Promotion Board (FIPB) on Monday, 30 December 2013, approved UK-based Tesco Plc’s proposal to enter the Indian multi-brand retail segment in joint venture with Trent. The stock rose 0.58%.
Trent had announced on 17 December 2013 that the company is in discussions with British retailer Tesco regarding an investment by Tesco in Trent Hypermarket (THL) which operates the Star Bazaar retail business and is engaged in multi-brand retail trading. Trend had announced at that time that Trent and Tesco will each own a 50% stake in THL.THL currently operates 16 stores across the Southern and Western regions of India. The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka, Trent had said on 17 December 2013.
Shares of other organised retailers also rose. Future Retail (up 7.1%) and Shoppers Stop (up 0.98%) gained.
Hospitality shares were in demand. Taj GVK Hotels, Hotel Leela Ventures, Indian Hotels, EIH, EIH Associated Hotels and Royal Orchid Hotel rose 1.58% to 14.48%.
Aviation stocks rose. SpiceJet (up 1.74%), Jet Airways (India) (up 3.22%) and Kingfisher Airlines (up 9.77%) gained.
Glenmark Pharmaceuticals rose 0.37%. Glenmark Pharmaceuticals and Glenmark Generics Inc., USA today, 31 December 2013, said that Cephalon Inc. has filed a patent infringement suit on 26 December 2013 in the US District for the District of Delaware, seeking to prevent Glenmark from commercialising its Abbreviated New Drug Application (ANDA) Bendamustine Hydrochloride product, a generic version of Treanda, prior to expiration of the Orange Book patents. A complaint against Glenmark has been filed on US patent 8,445,524. This lawsuit was filed under the provisions of the Hatch-Waxman Act, Glenmark Pharmaceuticals said in a statement.
Bendamustine is indicated for the treatment of patients with chronic Lymphocytic Leukemia. The ANDA has been filed from Glenmark’s Argentina lyophilized injectable facility. For the twelve month period ending September 2013, Treanda achieved sales of $659 million in the United States, according to IMS Health data.
GMR Infrastructure (GMR) rose 1.64% after the company said after market hours on Monday, 30 December 2013, that it has signed a definitive agreement with Malaysian Airports Holding Berhard (MAHB) to divest its 40% equity stake in Sabiha Gokcen International Airport (ISGIA) and its operating company LGM Tourism (LGM) for euro 225 million (i.e. approximately Rs 1910 crore), subject to certain adjustments. Definitive agreements have been signed subsequent to the exercise of Right of First Refusal (ROFR) by MAHB under the existing shareholders agreement of ISG, on 23 December 2013, GMR said.
GMR said that the transaction is subject to customary closing conditions including the approval of the relevant government authorities and the project lenders to ISG.
Commenting on the transaction, G M Rao, Chairman, GMR Group said, “This transaction is yet another evidence of GMR Group’s ability to implement appropriate strategy to face the challenges of changing times. We at GMR Group continue to focus on creating liquidity and enhance value by effective portfolio management under our ALAR (Asset Light Asset Right) strategy. The efforts of the Group taken in recent times shall strengthen our balance sheet”.
ISG is one of the world’s fastest-growing airports. It currently hosts more than 58 different carriers covering over 125 destinations. The consortium of Limak Holidng, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the airport in July 2007. The airport’s new terminal was commissioned in October 2009, 12 months ahead of schedule. LGM undertakes the operation of non-zero services at the airport such as hotel, food beverages, and lounge. GMR’s equity investment at ISG is around euro 71.6 million.
Realty stocks rose in volatile trade. DLF (up 0.12%), Indiabulls Real Estate (up 0.73%), Oberoi Realty (up 2.47%), Godrej Properties (up 0.55%), Omaxe (up 0.12%) gained. Unitech was unchanged at Rs 15.30. HDIL fell 0.19%.
Just Dial gained 1.21% to Rs 1,435 after striking a record high of Rs 1,459 in intraday trade.
Tata Communications advanced 4.18% to Rs 308.80 after hitting a 52-week high of Rs 309.65 in intraday trade.
Jain Irrigation Systems rose 2.04% after the company said it bagged one of the country’s largest irrigation projects worth Rs 385.70 crore in Karnataka. The announcement was made after trading hours on Monday, 30 December 2013.
The project mooted by Krishna Bhagya Jal Nigam (KBJNL), a division of Water Resources Department of Karnataka, intends to irrigate 30,381 acres owned by over 7,000 farmers in 35 villages. KBJNL selected Jain Irrigation Systems through national competitive bidding process.
The project involves survey, planning, design, supply and execution of distribution system using HDPE / PVC piping network. Besides, it involves formation of Water Users Co-operative Societies in convenient blocks, installation of on-farm fully automated Micro Irrigation System on the field and two year’s maintenance after commissioning. The company will also train farmers on proper use of micro irrigation system and capacity building of farmers, Jain Irrigation Systems said in a statement.
Successful commissioning of this project will assume the status of being the largest Micro Irrigation project in the world for improving water use efficiency in canal command areas through conduit distribution and use of Micro Irrigation Systems, Jain Irrigation said.
Commenting on the development, Jain Irrigation Joint Managing Director Atul Jain said: “We are excited to receive such large order for uniquely designed project, which will usher in significant benefits to all stakeholders considering backdrop of dwindling water supply in our country in inverse proportion to more demand for agriculture produce.”
Deep Industries rose 3.63% after the company said it allotted 29.50 lakh convertible warrants of Rs 34 each on a preferential basis to five promoter group entities. The company made the announcement during trading hours today, 31 December 2013.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade after the Foreign Investment Promotion Board (FIPB) on Monday, 30 December 2013, cleared Vodafone and Tesco’s investment proposals, worth around $1.7 billion in total. The partially convertible rupee was hovering at 61.80, compared with its close of 61.91/92 on Monday, 30 December 2013.
The Confederation of Indian Industry (CII) on Monday, 30 December 2013, said that the CII Business Confidence Index (CII-BCI) rose sharply to 54.9% in Q3 December 2013, from 45.7% in Q2 September 2013. The pick-up in BCI for the current quarter comes as a major relief for the economy which has been braving the onslaught of the slowdown for the last several quarters and awaiting the return of growth, the CII said in a statement. The survey also strikes a note of caution as the downside risks to growth have still not abated and supply side bottlenecks continue to pose a problem, CII said. “With some positive signals emanating from the global economy, which finds a resonance in our improved export performance and is causing our current account deficit to decline, we believe that the slowdown in the domestic economy may have bottomed out in the second quarter and the trend could reverse henceforth”, observed Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry.
The 85th Business Outlook Survey is based on the responses from over 174 industry members. Majority of the respondents (63%) belong to large-scale firms, while 12% are from medium-scale firms and 25% were from small-scale. Further, 65% of the respondents were from manufacturing sector while 35% were from services.
The survey reveals that 58% of the respondents expect an increase in their sales in the third quarter of 2013-14, much higher than 45% who witnessed the same during the previous quarter. As regards the input cost in the current quarter, majority of the respondents also expect it to increase. The silver lining, however, is that the percentage of respondents who expect expenses on raw materials, electricity, and wages and salaries to increase has declined significantly from the last quarter, CII said.
Against the backdrop of an expected improvement in sales growth and moderation in inputs cost, majority of the respondents (43%) expect an increase in their pre-tax profit margin in the third quarter, much higher than 31% in the previous quarter.
Another positive signal emerging from the survey is that an improvement in capacity utilization is expected in the current quarter, CII said. As compared to 56% respondents experiencing less than 75% capacity utilization in the second quarter, only 45% respondents expect capacity utilization to fall below 75% in the third quarter, CII said. Underlining the need for continuing policy intervention to step up investment, 53% of firms did not expect their capacity to expand in the current quarter.
What is also encouraging is to note that the export prospects look positive in the current quarter whereas imports are seen to be restrained, CII said. 53% of firms expected their exports to increase in the current quarter, up from 49% in the previous quarter. Similarly, 56% of the respondents didn’t expect their imports to increase during the current quarter.
In the 85th Business Outlook Survey, domestic economic/political instability, slackening consumer demand, high level of corruption, persistent high inflation and risk from exchange rate volatility emerged as the top five current concerns in order of severity to most firms, CII said.
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.
Prime Minister Dr. Manmohan Singh will hold a press conference on 3 January 2014. The press conference is likely to set the tone for the Congress party’s election agenda in 2014, according to reports. Dr. Singh is likely to officially opt himself out of the prime minister’s race after the 2014 elections, reports suggest.
Amidst demands that the Congress party should reveal its prime ministerial candidate for the 2014 Lok Sabha elections, Information and Broadcasting Minister Manish Tiwari today, 31 December 2013, said that the decision will be taken and announced at the appropriate time.
European stocks edged higher on Tuesday, 31 December 2013, amid shortened trading hours for New Year’s Eve before American consumer confidence and housing data. Key benchmark indices in France and UK were up 0.25% to 0.28%. The stock market in Germany was closed for holiday.
Asian stocks edged higher on the last trading session of the year on Tuesday, 31 December 2013, as energy shares advanced. Key benchmark indices in China, Hong Kong and Singapore were up 0.26% to 0.88%. Taiwan’s Taiwan Weighted fell 0.14%. Stock markets in Japan, South Korea, Indonesia, Thailand, the Philippines and Vietnam were closed for holidays.
China is scheduled to post its manufacturing purchasing managers’ index for December 2013 tomorrow, 1 January 2014.
China’s central bank on Monday, 30 December 2013, said it would continue with a “prudent” monetary policy, maintain an appropriate level of liquidity and bring about the “reasonable growth” of credit. The People’s Bank of China (PBOC) made the comments in a statement on its website following a quarterly monetary policy meeting.
The PBOC said financial markets have been steady, while domestic prices have been “basically stable.” China’s consumer price inflation this year has been benign, and has not exceeded the officially targeted ceiling of 3.5% in any single month. The PBOC also said it would carry out further interest rate liberalization and exchange rate reform, though it did not give any timetable. China took a step toward interest rate reform in July, scrapping most controls on lending rates, but a cap on the interest paid on bank deposits remains. The central bank continues to intervene heavily in foreign currency markets to control the exchange rate.
The PBOC said it would closely monitor changes in domestic and international liquidity conditions. The global economy is expected to continue to recover at a slow pace, the PBOC said, although uncertainties remain.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 31 December 2013. US stocks finished little changed on Monday, 30 December 2013, although the Dow Jones Industrial Average managed to eke out its 51st record close of 2013 in the next-to-last trading session of the year, while shares of Twitter extended a decline. The National Association of Realtors said its index of pending home sales rose 0.2% in November to 101.7, slightly above a 10-month low of 101.5 in October, but down from 103.3 in November 2012. The data had little impact on stocks.
The US stock market is closed tomorrow, 1 January 2014, for New Year’s Day holiday.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world’s largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
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