Thứ Tư, 30 tháng 4, 2014

Mapletree, Oakwood in multibillion-dollar deal

SINGAPORE: Mapletree Investments and California-based Oakwood Worldwide have signed a multibillion-dollar deal to acquire and develop serviced apartments.


Under the deal, Mapletree will acquire a 49 per cent stake in Oakwood Asia Pacific — the United States firm’s serviced apartment business in Asia — for an undisclosed amount.


The joint venture then aims to acquire and develop some US$4 billion (S$5 billion) worth of corporate and serviced apartment assets within Asia, Europe and North America.


Both companies said in a joint statement on Wednesday that this will see the opening of more than 100 new properties around the world under the Oakwood brand over the next five years.


Mapletree said it will directly acquire and develop serviced apartments under a licence to use the Oakwood Worldwide brands in all markets outside of North America.


Meanwhile, Oakwood Worldwide will also source and manage acquisition and development deals for Mapletree within North America.


Mapletree’s group chief executive officer Hiew Yoon Khong said in the statement that the joint venture is an “important step for us in our next five-year strategic growth plan”.


“The joint venture will help Mapletree build our operational capability in the corporate and serviced apartments sector,” he said.


“This sector is another key asset class which we are confident of building into a world class platform with Oakwood as a partner.”


Oakwood Worldwide has service apartments throughout the US, London and in the Asia Pacific region.


In the region, the serviced apartments are located in China, Hong Kong, India, Indonesia, Japan, Korea, the Philippines and Thailand.


Mapletree owns and manages S$24.6 billion of office, logistics, industrial, residential and retail/lifestyle properties as at March 31. 



Mapletree, Oakwood in multibillion-dollar deal

Singapore room rates top in Asia as island state booms



Hotel chains are flocking to Singapore


– Published 01 May 2014 02:30 AM



Mamoru Kohda, who scouts the globe for properties for Japan’s Daisho, began looking for a hotel in Singapore in early 2013. Within a year, the property investor and developer had acquired the newly opened Westin in the island-state’s financial district for a record price.


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“Singapore’s hospitality market will continuously grow, supported by tourists and corporate travellers,” said Kohda, a director at Daisho Development Singapore in Brisbane, Australia. He travels the world seeking assets for the company, which has more than $1.5bnin property holdings.


Singapore is attracting hotel chains such as Accor and the InterContinental Hotels Group, which are both adding new properties in the island-state, where the average daily hotel room rate is the highest in Asia. Accor will open its Sofitel brand in the business district next month and its first Ibis Styles brand in Singapore in 2016, while InterContinental opened its Holiday Inn Express in the city’s nightlife hub of Clarke Quay in March.


Investors are gravitating to Singapore because of a record number of leisure and corporate visitors and a scarcity of properties to buy. Tourist arrivals in Southeast Asia’s biggest financial centre are forecast to hit a record and daily room rates exceed those in Tokyo and Hong Kong, cities with among the highest hotel rates in the region.


Eleven hotels valued at S$2.45bn($1.95bn) were sold in Singapore last year, four times the total in 2012, according to deals tracked by property broker Savills.


“We are seeing some pretty aggressive bidding just to get into Singapore,” said Robert McIntosh, executive director at broker CBRE’s Asia-Pacific hotel business in the island-state. “Some of the landmark iconic properties, which are extremely well sought after, aren’t driven just by income, but by long-term capital gains.”


Visitor arrivals in the city off the tip of Malaysia are forecast to grow as much as 8pc to a record 16.8 million this year from 2013, while revenue may climb by as much as 5pc to S$24.6bn, the Singapore Tourism Board forecasts.


Singapore accounted for 16pc of a record 143 deals valued at $13.4 billion in the Asia-Pacific region last year, according to CBRE. That’s an increase in hotel sales from a 6.8pc share of deals in Asia in 2012, CBRE data showed.


The island-state attracted a record 15.5 million visitors and business travellers in 2013, according to the tourism board, with events such as Formula One’s night races with concerts featuring singers such as Rihanna and Justin Bieber, and attractions including a S$1bn downtown park with a flower dome of plants from around the world that opened in 2012.


Singapore retained its position as the world’s leading place to hold conferences in the latest global rankings by the Brussels-based Union of International Associations. Events included SkyBridge Capital’s inaugural Asian hedge fund conference in 2012, modelled on the company’s popular SkyBridge Alternatives Conference in Las Vegas.


The Marina Bay Sands, a four-year-old resort, retail and restaurant complex, dominates the city’s skyline, and houses a casino built by US billionaire Sheldon Adelson’s Las Vegas Sands Corp at a cost of $6bn. Resorts World Sentosa, built by Genting Singapore Plc for S$7bn in 2010, houses Southeast Asia’s only Universal Studios theme park.


“Singapore is a very strong market and one of our top markets in Asia,” said Michael Issenberg, Accor’s chairman for the Asia-Pacific region. “Demand is high as Singapore does a great job with the conferences, leisure and corporate sector and a lot of airline business, it’s got a good mix.”


The average daily hotel room rate in Singapore was $206 in 2013, near the record $209 set in 2012, according to Cushman Wakefield. That compares with $166 in Tokyo and $185 in Hong Kong, according to the broker.


Tokyo-based Daisho in December bought the 305-room Westin within the Marina Bay business area from a fund owned by BlackRock Inc for about S$468 million, or a record S$1.5m per room, according to CBRE.


“Since the hotel is brand new, we considered some price premium,” Kohda said. “The area is developing very quickly and has a very strong pool of office tenants so we thought that the hotel has more potential to grow.”


Daisho has developed overseas projects including the 510- room hotel managed by Hilton Group Inc in Kuala Lumpur and the Park Hyatt Sydney hotel that it refurbished in 2012, according to the company.


There were no hotel transactions reported in the quarter ended in March because of the gap between buyers and sellers’ expectations on price, according to CBRE.


The broker tracked 13 hotel transactions in Singapore last year, five of which sold for more than S$1m per room, the most number of deals struck above that price, data from the property broker showed.


Revenue per available room or revpar an industry measure of occupancy and rate in Singapore may increase by 3pc annually through 2016 for hotels across all lodging categories, Standard Chartered Plc said in a note to clients on March 10.


Growth will be driven by arrivals and tourist spending increases of as much as 10pc per annum as global economic conditions and corporate spending improves, according to the report.


Singapore’s revpar declined 1.4pc last year amid an increase in supply, said Akshay Kulkarni, regional director of hospitality for South and Southeast Asia at Cushman in Singapore. The revpar rose 0.9pc to S$214.10 in January, according to the latest data from the Singapore Tourism Board.


Among properties bought by foreign investors was the 308-room Grand Park Orchard and its shopping mall along Orchard Road, Singapore’s prime shopping belt. It was acquired for S$1.5m per room by Chinese steel tycoon Du Shuanghua through his Singapore-based company Bright Ruby Resources, Knight Frank said.


“Interest is still very strong for Singapore assets,” said Julien Naouri, associate director of hotels for Asia Pacific at Savills.


“It’s a very transparent market and more and more investors from China are wanting to put some money here and hospitality is one of the asset classes they are familiar with.”



Singapore room rates top in Asia as island state booms

Singapore Banks Show Earnings Strength

Singapore’s banks posted record first-quarter earnings, propelled by stronger loan margins and volumes.


DBS Group Holdings, Southeast Asia’s largest lender by assets, Oversea-Chinese Banking Corp. and United Overseas Bank reported earnings that showed healthier lending profitability and loan demand from branches in China and parts of Southeast…



Singapore Banks Show Earnings Strength

Malaysia embattled by jet probe sees ringgit support




Malaysia embattled by jet probe sees ringgit support




Details


Category: Asean Economic Community


Written by Bloomberg News



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Currency strategists are giving Malaysia a vote of confidence just weeks after the government came under criticism for its handling of a probe into the disappearance of an airliner with 239 people onboard.


A growing number of analysts say steps by Prime Minister Najib Razak to end 16 years of budget deficits will outweigh any short-term negative reaction toward the country, which has suffered an exodus of Chinese tourists since the Malaysian Airline System Bhd. jet bound for Beijing vanished on March 8. The ringgit lost value in five of the past seven weeks even though economic growth is seen expanding this year.


Bank of America Corp. named the ringgit one of its two favorite Asian currencies this month, while Wells Fargo Co. raised its year-end estimate to forecast a 2.5-percent rally to 3.18 per dollar and Société Générale SA predicted a level of 3.15. A measure of purchasing power parity shows it to be the cheapest of nine Asian currencies tracked by Bloomberg.


“Malaysia’s trade balance is expanding and its growth is driven by exports and investment, which will offset any potential decline in tourism after the plane incident,” Albert Leung, a strategist at Bank of America in Hong Kong, said on Tuesday in a phone interview. “The fiscal consolidation story has some incentive for them to have to keep improving.”


Best prospects


Bank of America said in an April 17 note that the ringgit and South Korean won are Asia’s best prospects. While the median forecast in a Bloomberg strategist survey predicts Malaysia’s currency will weaken 1.6 percent by year-end to 3.29 per dollar, that prediction has risen from 3.32 on April 25.


The ringgit is 53 percent undervalued, according to the Economist magazine’s Big Mac index that measures purchasing power parity based on the cost of McDonald’s Corp.’s hamburger in different countries.


The ringgit is the worst performer among developing Asian currencies over the past six months after Thailand’s baht, sliding 3.6 percent versus the greenback, data compiled by Bloomberg show.


Its 7-percent decline last year was its sharpest loss since the Asian crisis of the 1990s and was worsened by the US Federal Reserve cutting its monetary stimulus program, which had the effect of pumping money into the world’s financial markets.


Flight MH370


Malaysia’s currency touched 3.3511 on February 4, the weakest level since May 2010, before starting a rally that has left it 0.5 percent higher since the start of the year. It has risen 0.1 percent in April, following two months of gains.


The government’s handling of the search for Malaysian Airline Flight MH370, the longest for a missing passenger plane in modern aviation history, has shone a spotlight on Southeast Asia’s third-largest economy and opened the government up to criticism. The authorities had faced an “unprecedented” situation and despite initial communication problems, “toward the later part, we got our act together,” Najib told CNN in an interview last week. The government will release a preliminary report this week on the disappearance of the airliner, he said.


Malaysian officials were accused of issuing conflicting statements in the days following the tragedy, and family and friends of the mostly Chinese passengers have protested in front of the nation’s embassy in Beijing.


The number of Chinese tourists traveling to the country has declined since the plane’s disappearance, Malaysian Tourism and Culture Minister Mohamed Nazri Abdul Aziz was quoted as saying in an April 9 report by the official Bernama news agency. Travel and tourism accounted for 16 percent of Malaysia’s gross domestic product (GDP) in 2013.


Fiscal improvement


“I don’t really think the airline incident changes anything,” Steffen Reichold, an emerging-market economist at Stone Harbor Investment Partners Lp., which oversees $63 billion, said in a telephone interview from New York on April 28. “The economy has been performing reasonably well. It’s one of the high-growth currencies.”


Malaysia, whose $305-billion economy is smaller than Taiwan’s $355 billion and larger than Singapore’s $275 billion, has run budget shortfalls every year from 1998.


Concern that the nation’s public finances would worsen prompted Fitch Ratings to cut the outlook on its “A-” credit grade to “negative” from “stable” last July 30. Malaysia could move closer to a rating downgrade if a persistent current-account deficit emerges alongside its fiscal deficit, the New York-based company said in a January 10 report.


There are signs of a rosier picture emerging. Najib’s cuts to fuel subsidies, increased electricity tariffs and plans for a consumption tax have prompted the central bank to predict the fiscal deficit will narrow to 3.5 percent of GDP in 2014, from 3.9 percent last year.


‘Boost sentiment’


“Those are steps in the right direction, which should help boost investor sentiment,” Benoit Anne, the London-based head of emerging-market strategy at Société Générale, said in an April 28 interview. The ringgit “has lagged most of its peers, and with the recovery in risk appetite, the chasing-the-laggards behavior should support it,” he said.


Options traders are the most optimistic about the ringgit in more than a year, according to data compiled by Bloomberg. The premium on three-month contracts giving the right to sell the currency over those allowing for purchases fell to 1.1 percentage point on April 10, the smallest gap since January 2013 and down from as much as 2.55 percentage points in August.


Current account


The surplus in Malaysia’s current account, the broadest measure of trade, widened to 16.2 billion ringgit ($5 billion) in the fourth quarter, from 2.55 billion ringgit in the April to June period last year, which was the smallest excess on record. The trade surplus widened to a two-year high of 10.4 billion ringgit in February, paced by a 12.3-percent jump in exports compared with a year earlier.


Factory output increased 6.7 percent in February, the most since July, while GDP will expand 5.05 percent this year, up from 4.7-percent growth in 2013, according to a Bloomberg survey of economists.


“The improving outlook for Malaysia’s economy and fiscal position, along with a benign global market environment, have been supporting a stronger ringgit,” Eric Viloria, a strategist at Wells Fargo in New York, said on Wednesday by e-mail. “Steady and gradual Fed tapering resulting in orderly US bond market conditions, rather than a sharp rise in yields, is also a key factor in the forecast upgrade.”



In Photo: Subas Chandran from Malaysia Airlines (center) and Sayid Ruzaimi Syed Aris from Malaysia’s civil aviation department (right) brief the relatives of Chinese passengers onboard the missing Malaysia Airlines MH370 plane at a hotel in Beijing, China, on Tuesday. Malaysian authorities on Tuesday in Beijing played for the first time the audio communications between Flight MH370’s cockpit and air-traffic controllers before the plane disappeared on March 8. (Bloomberg)



 


 


 




Malaysia embattled by jet probe sees ringgit support

BCA to give out record number of green awards to organisations - eco

A record number of awards will be given out this year to building owners and developers for environmentally-friendly practices.


According to the Building and Construction Authority (BCA), two companies will receive the Green Mark Champion Award at the BCA Green Mark Awards next month.


A sloping roof garden has become an iconic feature of the School of Art, Design and Media at Nanyang Technological University (NTU), and it is not only about the aesthetics.


The garden also helps to bring down the surface temperature of the building, thereby reducing the need for air-conditioning.


There are also more than 100 sensors installed in the school. They are able to detect the intensity of sunlight as well as the movement of people, and the lights are then dimmed or brightened according to the conditions.


This has helped the university to save 10 per cent of its electricity bill each year.


Such features across the campus have helped NTU clinch the Green Mark Champion Award.


Freddy Boey, NTU’s Provost, said: “My vision is for the whole campus to become a test bed. I have many buildings coming up, and the architects are free to put in enhancements, features that maximise energy usage, minimise wastage. And if they get this right — some of these technologies actually come from NTU, we’re trying it out — and if it works, we can export it overseas.”


The top accolade is also being shared with property company Keppel Land this year.


One of its projects, the Ocean Financial Centre, boasts the world’s largest vertical garden.


The 2,125-square-metre green wall is equivalent to the size of eight tennis courts. It comprises close to 57,000 pots of plants, which form the map of Singapore, Southeast Asia and the world.


Due to the green wall’s proximity to the car park, it helps to filter out emissions from vehicles. Solar panels have been installed on its roof to generate electricity for the building’s energy needs.


The organisation recognises that adopting green initiatives has a positive impact on their eco-system.


Ang Wee Gee, Keppel Land’s chief executive officer, said: “For sustainability to work, we need to actively engage and involve all our stakeholders — from our employees to contractors to homeowners and office tenants. Through our ongoing ‘Go Green with Keppel Land’ outreach efforts, we hope to influence and change mindsets, and ultimately, achieve sustainable outcomes for all our stakeholders.”


More organisations are joining the effort to be environmentally-friendly.


This year, a record number of 225 Green Mark Awards are being given out. Building projects are assessed on how well they incorporate environmentally-friendly and sustainable features.


Assessment criteria include energy and water efficiency as well as indoor environment quality.


But the BCA wants the green message to reach all users.


John Keung, BCA’s chief executive officer, said: “The users’ energy consumption can sometimes take more than half of the consumption of the entire building. So even if the building is energy-efficient, but if the users are not, then you are not achieving the full potential of the green building. So our next target is to go big on users, to get them to commit and achieve the highest possible ratings for their operations.”


To date, there are about 2,000 BCA Green Mark building projects in Singapore, translating to about 24 per cent of the total gross floor area.


BCA said that it is on track for the target to green at least 80 per cent of all buildings in Singapore by 2030.


The BCA Green Mark Awards will be given out in a ceremony on May 22.



BCA to give out record number of green awards to organisations - eco

Top Actor Dies at 71; Brunei Adopts Sharia Law; Navy"s Giant Case of Overkill ...

theguardian.com Bob Hoskins, the British actor who starred in The Long Good Friday, Who Framed Roger Rabbit and many more, has died aged 71.


dailymail.co.uk Brunei is to become the first East Asian country to adopt Sharia law despite international criticism. Sharia punishments will include severing of limbs for theft and death by stoning for adulterers and will be introduced over a period of three years.


afp At least 14 people were killed Wednesday when a truck carrying local villagers crashed in a mountainous region of north-west Thailand, police and hospital officials said.


smh.com.au The Australian-led team searching for missing Malaysia Airlines jet MH370 has discounted claims by a private company that it may have found the plane’s wreckage in the Bay of Bengal.



theguardian.com Cambodia has agreed to an in-principle arrangement to take asylum seekers in Australian detention in Nauru who are found to be genuine refugees, according to the ABC.



PHUKET: The daily wrap of Thailand news, with a Phuket perspective, plus relevant reports from national and international media. Beware of inconsistent imitations.



jurist.org Thailand’s National Anti-Corruption Commission (NACC) indicted 36 senators for alleged misconduct, including the misuse of authority in violation of Thailand’s constitution. The indictment is a response to the senators’ attempt to amend the constitution to make the senate fully elected, a move ruled unconstitutional by the Constitutional Court in November.



nationmultimedia.com The Election Commission (EC) agreed to take into consideration the proposal of Democrat party leader Abhisit Vejjajiva to reform the electoral process before holding an election.



bangkokpost.com The parachute training jump mishap that killed two police cadets in Phetchaburi on March 31 was no accident, an official probe concluded, but was caused by substandard maintenance of the cable used to deploy the chutes.



wsj.com Key economic indicators suggested that Thailand’s growth in the first quarter likely contracted slightly as prolonged political conflict undermines the economy, the Ministry of Finance said.



bangkokpost.com Somyot Pruksakasemsuk, serving 10 years, writes from jail: As far as I am concerned lese majeste should not be a statute of law and therefore I am not guilty. So if I were to accept a royal pardon for freedom, I would still be a prisoner of my conscience. I choose to suffer in order to fight injustice and malpractice despite the fact that I will eventually be found guilty or die beforehand.



fidh.org Thailand must release labor rights activist Somyot Prueksakasemsuk and promote a free, open, and informed public debate on lese majeste.




microfinancemonitor.com A New York pilot informed his hometown news channel WIVB that the MH370 was lying underneath the Indian Ocean, off the northeast coast of Malaysia, which is west of Songkhla in Thailand.



intoday.in Michael Hoebel, 60, says he reached the conclusion after searching thousands of satellite images online and spending hours trawlling through images made available to the public on a crowd-sourcing website, TomNod.com, before coming across what he believes is the doomed plane. The plane appeared to be in one piece. ”It is located beneath the water off the northeast coast of Malaysia, just west of Songkhla in Thailand,” he says. Asked if the shadow could be a shark, Hoebel said, ”That’s a 210-foot shark.”



washingtonpost.com It is time for others to follow or get out of the way. The Malaysia Airlines Flight 370 investigation has been floundering for too long. Republicans should urge the president to inform the world that the United States is assuming the lead role in the investigation, search, recovery and final report.




bangkokpost.com Editorial: The Phuketwan case raises questions about just why the navy has gone after the Phuketwan news team so very strongly. It is one of several wrong signals that the Phuket naval officers have given in the case of the Rohingya allegations. Bringing the full power of state prosecution against a small website is the navy’s legal right, but it is also the right of observers to question whether it is a giant case of overkill.



pen-international.org John Ralston Saul: Free speech is of course a more fundamental yet delicate element of any civilization. It requires fair laws, governmental restraint, solid public structures and independent enforcement.



ttrwekly.com Australia’s Nine news travel section commissioned Bangkok writer Mason Florence to identify the beaches Australian tourists should avoid. Top of the list was Pattaya that he said was ”enslaved to vice; a neon-lit tropical Gomorrah fuelled by sweat, tears and the sterling trade of its sprawling red-light scene.” Since Mr Florence wrote his recommendations, both Samui and Phuket have been plagued with the same negative traits that he identified in Pattaya.



ndphr.net The United Nations Special Rapporteur for Human Rights, Tomas Ojea Quintana has said ”There are elements of genocide in Rakhine with respect to Rohingya.” Speaking at the London Conference on Decades of State-Sponsored Destruction of Myanmar’s Rohingya, Ojea added: ”It is crimes against humanity. The possibility of a genocide needs to be discussed.” The conference marked the first time top legal experts, academics and activists have met at the London School Of Economics And Political Science (LSE) and initiated the public debate on whether the persecution of the Rohingya by Myanmar should be considered genocide under international law.



saudigazette.com.sa The Rohingya Muslims in Myanmar are victims of a war of genocide at the hands of Buddhist extremists, and this is being done with both the blessing and the inaction of the Myanmar government. The atrocities Rohingya Muslims have been subjected to from murder, arson, displacement and deprivation of even basic human rights are considered crimes against humanity and ethnic cleansing, according to the testimony of international human rights organisations.



aroundtherings.com The Director General and Technical Director of the Olympic Council of Asia, Mr Husain Al-Musallam, believes the 4th Asian Beach Games in Phuket, Thailand, this November will be the perfect combination of tourism and sport. Speaking at the 200-day countdown celebration at the Jungceylon Shopping Mall in Patong, Mr Al-Musallam said: ”They will be a Games of happiness, fun and modern sports presentation on the famous beaches of Phuket.” Mr Al-Musallam added that the OCA’s decision to award hosting rights to Phuket proved the trust and support of the Asian sports movement in the Phuket tourism industry following the devastating tsunami that hit the island and region in December 2004.



insidethegames.biz A tour of the six different venue clusters was also organised to give a first hand update on progress, beginning at the Hilton Phuket Arcadia Resort and Spa, the headquarters for the OCA and Organising Committee during the Games. A visit was then paid to one of the two main venue clusters on Karon Beach, where marathon swimming, sailing and windsurfing, as well as handball, volleyball and basketball, will be among the sports to take place. The Games will feature 147 events in 23 sports from November 14 until November 23.




mcot Thailand’s caretaker Cabinet extended the Internal Security Act (ISA) in the capital and its adjacent provinces for another two months amid worries over possible confrontations between rival political groups.



nationmultimedia.com Editorial: It sounds romantic to say people are willing to die for democracy, but the truth is that most, if not all, “political” deaths have been for an unpolished ”winner-does-all-and-gets-all” concept. One can die for an ideal, of course, but it pays to remember that too big of a bite can also choke you to death.



thestar.com.my Malaysia ranked 38th out of 106 countries in terms of military strength according to a report published by Global Firepower. In the Asean sphere, aside from Singapore (44), Malaysia also beat out the likes of Cambodia (82) and Laos (102), but lost to Vietnam (23), Thailand (24) and the Philippines (37).



theguardian.com Australian federal police have issued Matt Christopher Lockley with a notice to appear in the Brisbane magistrates court on 6 June, when he is expected to be charged with interfering with a crew member after a hijack scare on a flight to Bali.



watoday.com.au A FedEx employee wearing bullets draped across his chest ”like Rambo” opened fire at a package-sorting centre outside Atlanta, wounding six people before apparently committing suicide, police and witnesses said.



phnompenhpost.com The Cambodian government has ”agreed in principle” to a controversial refugee resettlement scheme with Australia, a senior foreign ministry official announced, but will hold off on inking a deal until the proposal has been further analysed.



inquirer.net Males from Thailand, Cambodia, and Laos have the second-shortest bananas in the region with their four-inch produce. Surprisingly, the Thais and Cambodians have a relatively small bulge.




dw.de Real Madrid have eliminated Bayern Munich from the Champions League, demolishing the Bavarians 4-0. With Bayern needing to play catch-up from the start, the Spaniards made sure they instead widened the gap.



afp Having won last week’s first leg 1-0 in Madrid, Real won the semi-final 5-0 on aggregate as Pep Guardiola’s Bayern, the title holders, suffered their heaviest home defeat in European competition.



skysports.com Cristiano Ronaldo broke Lionel Messi’s all-time record for the most goals in a single Champions League season. Gareth Bale told Sky Sports News: ”That’s why he’s the world’s best player. It’s an honor to play with him and to learn from him.”



smh.com.au Former Australian swimmer Geoff Huegill and his publicist wife Sara Hill will face court next month after being allegedly caught with cocaine at Sydney’s Randwick racecourse.




April 30 US Embassy Outreach, Le Meridien Phuket Beach Resort, 8am-noon.



May 24 Visakha Bucha Day



July 11 Arsanha Bucha Day



August 12 Queen’s Birthday



September 24-October 2 Vegetarian Festival, Phuket



October 23 Chulalongkorn Memorial Day



November 6 Loy Kratong



November 14-23 Fourth Asia Beach Games, Phuket



December 5 King’s Birthday



December 10 Constitution Day



December 25 Christmas Day



December 26 10th Anniversary, 2004 Tsunami



December 31 New Year’s Eve



Top Actor Dies at 71; Brunei Adopts Sharia Law; Navy"s Giant Case of Overkill ...

Hedge-Fund Startups Adapt to New Singapore Rules

When Gaurav Bansal’s lawyers told

him about Singapore’s tightened hedge-fund rules introduced in

August 2012, he faced the prospect of spiraling costs to meet

the demands for starting his own fund.


The solution was to sign up with Swiss-Asia Financial

Services Pte, which provides infrastructure, office space and

services to meet compliance requirements and is licensed by the

Monetary Authority of Singapore.


“The regulatory change threw a spanner in the works,”

said Bansal, 40, who started his Salmon Global Fund with $4

million of assets in March under the Swiss-Asia Financial

umbrella. “They really came to my rescue.”


Bansal is among managers of smaller startup funds in

Singapore, Asia’s biggest hedge-fund hub after Hong Kong, who

are turning to such platforms to reduce costs. Swiss-Asia

Financial signed up 20 managers seeking to start their own funds

in the past nine months, while the number of new funds set up

more than doubled to seven last year at Gordian Capital

Singapore Pte
, according to the companies.


“If you have less than $40 million in assets under

management and you are launching a fund aimed at global

investors, it has become much more difficult,” said Mark Voumard, chief executive officer of Gordian Capital. A platform

“that allows managers to focus on their skill set is both a

cost-effective and efficient option.”


Stricter Regulation


Asia-based hedge funds oversaw a combined $79.7 billion as

of March, having recovered by 41 percent from the April 2009

trough, according to Eurekahedge Pte. In Singapore, 288 fund-management companies had $15.3 billion of assets under

management as of March, compared with $25.2 billion managed by

447 firms in Hong Kong, the Singapore-based data provider said.


“The investor network that platforms can offer should also

be viewed as a key driver to joining a platform,” said Omar

Taheri, business development manager at Swiss-Asia Financial.

“After all, raising capital is still one of the most difficult

tasks when you start a hedge fund.”


The tighter regulations introduced by the MAS in 2012

mainly affected smaller entities that were previously known as

exempt fund managers.


Under the previous rules, companies seeking to start under

the exempt status were “encouraged” to have at least two

professionals with a minimum of five years of experience,

according to Singapore-based law firm Colin Ng Partners LLP.

They weren’t subject to audit requirements, business conduct

rules or restrictions on assets under management. The only

relevant rules were that they weren’t allowed to have more than

30 qualified investors as clients.


Tightened Regulations


Under the tightened regulations, registered fund management

companies must have at least two relevant professionals with a

certain level of experience. In addition, they aren’t allowed to

manage more than S$250 million ($200 million) or have more than

30 qualified investors as clients, as opposed to licensed funds

managers, who have no such restrictions.


Registered managers also have to meet certain capital

requirements, need to implement a compliance and risk management

framework and are subject to tighter reporting, accounting and

auditing requirements, according to the regulator.


The city-state had about 540 exempt fund managers under the

old rules, an estimate by PricewaterhouseCoopers LLP showed.

About 200 of the exempt-status managers chose to become

registered, while about 190 of them obtained a fund-manager

license with higher requirements and unlimited assets under

management, it said.


‘Terminal’ Change


About 90 fund managers who were exempt shut down, joined

other companies such as family offices or signed up with a

platform, while the remaining 60 have either applied for a

license or to become a registered fund manager, according to the

consulting firm.


“For 80 percent of the exempt fund managers the change in

regulation made no difference,” said Peter Douglas, principal

of Singapore-based research firm GFIA Pte. “For 20 percent it

was terminal.”


Not all newer fund managers are linking up with partners

providing non-investment services. Integral Capital Pte started

a long-only fund in 2011 under the old regime and chose to

become a registered fund manager when the new rules were

introduced, even with the higher costs, said Talib Dohadwala, a

founding partner at the Singapore-based company. The stricter

regulations mandate an audited financial statement as well as a

risk management audit, both done by an external firm that could

cost more than S$15,000, according to Dohadwala.


“We wanted to be independent and run our business

autonomously,” said Dohadwala. “We felt from the beginning

that we could meet the requirements under the new regime.”


Proper Regulations


The new regulations are making Singapore a more sustainable

and robust environment for fund managers, according to Bill

Jamieson
, a partner at Colin Ng Partners.


“I don’t think those regulations are overkill,” Jamieson

said. “Singapore, being a proper financial market, needs proper

regulation.”


Bansal found a cost-effective solution by joining Swiss-Asia Financial.


“If you do it exactly by the book and set up a registered

office with the amount of space that is required as for the

regulations and employees it would easily cost between S$250,000

and S$300,000 per year,” Bansal said. “By setting up business

with the platform I save more than half of that amount.”


‘Saving Money’


Five out of 20 that have signed up with Swiss-Asia

Financial are either already in business or about to start,

Chief Operating Officer Steve Knabl said in Singapore. That

compares with one fund a year starting in previous years, he

said, adding that the company has seen a “dramatic increase of

interest.”


“The challenge we are having is some fund managers are not

willing to pay our platform fees,” said Taheri, adding that

managers should realize they can save money going with a

platform rather than setting up on their own.


Roshan Padamadan also started the Luminance Global Fund,

which invests in liquid securities including stocks, bonds and

derivatives, in January with Swiss-Asia Financial. He chose to

start through the company because it allows him to focus on his

investments.


“If you run your own hedge fund, you have to devote about

half of your time and energy to administration and

organization,” said Padamadan, who started with initial capital

of about $1 million and now manages $1.55 million. “Working on

a platform, you can spend much more time on the actual

investment process. I prefer to keep my head clear for that.”


Archimedean Point


Anil Ponnampalam, manager of the Archimedean Point Fund,

said that investing under a licensed company helps dispel

investors’ concerns that a new fund’s operations may not be

robust. Ponnampalam started his Asia-focused long-short equity

fund with Gordian Capital this month, he said.


“It’s about mitigating the business and operational risks

to allow me to focus on the performance as an investment

manager,” Ponnampalam said. “I owe that to every investor in

my fund.”


Gordian Capital, which typically attracted three new funds

on average annually, saw the number grow to seven new funds in

2013, Voumard said. Two have already started this year and two

more will begin soon, he said. Inquiries have also doubled to

about 100 managers seeking to start in the past 12 months, he

said.


“If you either have a small asset size or no interest in

building an organization, then some kind of a platform deal is

very sensible,” Douglas said.


To contact the reporter on this story:

Klaus Wille in Singapore at

kwille@bloomberg.net


To contact the editors responsible for this story:

Andreea Papuc at

apapuc1@bloomberg.net

Tomoko Yamazaki, Lars Klemming



Hedge-Fund Startups Adapt to New Singapore Rules

With no real government, can Thailand escape recession?

BANGKOK (Reuters) – Some bold assumptions about a rapid end to a six-month political crisis are all that stand between Thailand and its first real recession since the global financial crisis.


Southeast Asia’s second-largest economy is confronting weak exports, a year-long slump in industrial output and a drop in tourism, under a caretaker government with limited powers and a central bank wary of wasting ammunition on a political problem.


Protesters trying to topple Prime Minister Yingluck Shinawatra disrupted an election in February and no new vote is in sight. She could be removed by the courts next month anyway, leaving a power vacuum and probably sparking violence.


Undaunted, the Finance Ministry sees an improvement in the economy after what it says will be a contraction of less than 1 percent in the first quarter from the previous three months. On Tuesday it stuck to its forecast of 2.6 percent growth in 2014.


“That’s based on the assumption that confidence will return in the fourth quarter after the political situation eases, that exports will grow 5 percent this year with a recovery in global markets and that tourism will grow 5.0 to 5.5 percent,” Finance Ministry economist Kulaya Tantitemit told a news conference.


The Bank of Thailand also thinks things are looking up. On Wednesday it reported a small rise in investment and consumption in March from February, even if both were still down on the year.[ID:nAAN0MM02C] “It’s possible that March is the bottom for the economy this year, judging from consumption and investment which were fairly stable, and it’s likely the economy will start recovering in the second quarter and clearly improve in the fourth quarter,” said Don Nakornthab, head of its macroeconomic policy office.


But it has slashed its GDP growth forecast for 2014 several times because the unrest has hit tourism and confidence, and is set to cut it again from 2.7 percent. Last October, just before the political protests flared up, it expected 4.8 percent. Benjamin Shatil, an economist with JP Morgan in Singapore, also sees some improvement but acknowledges the risks are high.


“We do not yet see a full-year recession scenario and expect growth momentum to improve into the second half of the year. A large part of this outlook hinges on the political situation and if there is no functioning government in the coming months, the risk to growth will clearly be on the downside,” he said.


Pragrom Pathomboorn, an economist with KGI Securities, is among the more bearish. He thinks there could be a technical recession, meaning a contraction in both the first and second quarters, “because there’s nothing pointing to an improvement”.


“Nobody knows how the political situation will end. Exports have recovered somewhat but that’s not enough to offset shrinking consumption and investment,” he said. “If the situation remains unclear until early in the third quarter, it’s very likely GDP will grow zero percent or contract this year.”


The Election Commission has said the earliest date it thinks an election is possible is July 20, which might lead to a new government being installed in August. But protest leader Suthep Thaugsuban has said his supporters would disrupt any attempt to hold a ballot before electoral and other reforms.


DEPRESSION


Exports fell 3.1 percent in March from a year before and 1 percent in the first quarter, Commerce Ministry data showed on Monday. But the ministry expects growth of up to 4.5 percent in the second quarter and 5 percent for the whole of 2014, in line with the Bank of Thailand’s 4.5 percent.


Industrial output in March fell 10.41 percent from a year before, the 12th such drop in a row, the Industry Ministry said on Monday, highlighting weakness in the car sector, hard disk drives and canned and frozen seafood, all important exports.


The Commerce Ministry said imports plunged 14.19 percent in March from a year before, the third double-digit drop in a row. Many imports are raw materials for products that are exported, so that is bad news for those expecting a recovery in shipments.


The details showed a drop of 18.8 percent in imports of vehicles and parts, so it’s no wonder sentiment among car parts and machinery makers has been falling for 10 months, according to a March survey from the Federation of Thai Industries (FTI).


“The numbers fell more than we expected due to political factors, the Thai economy and stalled government investment,”


Surapong Paisitpattanapong, a spokesman for the FTI’s automotive group, told Reuters after the survey was published on Monday.


Mitsubishi Motors Corp said last week its sales in Thailand fell about 40 percent in its business year to end-March due to the protracted political crisis plus the end of a government rebate for first-time car buyers. [ID:nL3N0NG28F]


The FTI is set to revise down its estimate that 2.4 million vehicles will be produced this year, half for domestic sales.


“The goal to produce 1.2 million cars for the home market may not be feasible any more. We will be revising our projection down by at least 100,000 vehicles,” Surapong said.


PUBLIC WORKS SCRAPPED


The political antagonism has put paid to huge government infrastructure work that was contested by the opposition because of a lack of transparency in off-budget projects.


Finance Minister Kittirat Na Ranong had said the projects could add one percentage point a year to economic growth over several years but they were effectively scrapped when a court ruled them illegal in March. [IDn:L3N0M91PL]


Thailand’s top steel producer, Sahaviriya Steel Industries Pcl, said on Monday it now expected 2014 sales to be flat at 2.1 million tonnes. It had forecast a 15 percent rise.


“The political situation has dampened domestic demand for steel and we have seen a slowdown since November and December,” Chief Executive Win Viriyaprapaikit said. [ID:nL3N0NK2UD]


Twenty-five people have died in political violence since last November, including two children killed by a grenade in a central Bangkok shopping area near a protest camp.


Many countries have issued warnings about travelling to Bangkok, especially when a state of emergency was in force there earlier this year. As a result, many tourists have avoided the capital and some have just decided to give Thailand a miss.


The Tourism Council of Thailand says the country attracted about 6.5 million visitors in the first quarter, down from 7 million in the same period last year.


Pornthip Hirunkate, the council’s vice-president, noted a 22.5 percent drop in the number of Japanese tourists, who tend to be among the higher spenders, adding Japanese tour companies had simply dropped Thailand from their programmes for now.


Some in the industry are putting on a brave face.


AirAsia X Bhd, the long-haul arm of Malaysian budget carrier AirAsia Bhd, opens a Thai affiliate in June, starting with a service between Bangkok and Incheon in South Korea.


“It’s not the first challenge Thailand has gone through. They’ve gone through many episodes and each time tourism bounces back very strongly,” Azran Osman Rani, chief executive of Thai AirAsia X told Reuters, although his optimism about the launch was also based on inquiries from Thais keen to get away.


(Additional reporting by Orathai Sriring and Pairat Temphairojana; Editing by Jacqueline Wong)



With no real government, can Thailand escape recession?

ASEAN A Better Investment Than China For Businesses And Investors

At the Milken Institute Global Conference in Beverly Hills a panel discussion on Southeast Asia provided data, history and empirical experiences that all point toward the ASEAN member states continued economic growth. Moreover, the panel suggested the ten ASEAN member states – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – should be the primary destinations for businesses looking to expand in Asia and investors looking to invest in Asia now and for many years to come.


The ASEAN region is set to launch the ASEAN Economic Community (AEC) on December 31, 2015. The AEC is designed to replicate all the positive attributes and economic outcomes of the European Union while avoiding the EU’s missteps such as their common currency. Data presented by the panel showed that GDP for the combined ASEAN region rivals the GDP of India plus the Gulf Cooperation Council states. The over 600 million people in the ASEAN region collectively make up the 8th largest economy in the world without the AEC in place.


Panelist Paul Wolfowitz brought many relevant credentials to the panel including being former U.S. Ambassador to Indonesia and former president of the World Bank. To understand the size of the region he pointed out the geographic size of Indonesia’s archipelago in terms of the map of Europe would stretch from London to Moscow. He pointed out that whereas China is approaching a demographic cliff due to it’s one-child rule, the ASEAN population is younger (65% are under 35) and region-wide GDP growth is averaging 5%. While not hesitating to point out that there are degrees of corruption in the ASEAN countries, Mr. Wolfowitz feels confident doing business in ASEAN nations is more transparent and secure than in China. Vis-à-vis discussing measures of corruption, Mr. Wolfowitz has seen that ASEAN countries react positively when they get lower rankings on reports such as the World Bank’s ease of Doing Business report, and are nations that look to and “keep solving problems.”


Mr. Charon Wardini bin Mokhzani is executive director of Malaysia’s strategic investment fund, Khazanah Nasional Berhad. Mr. Charon pointed out that while there have been historical tensions between the countries within ASEAN, ASEAN was indeed formed to foster peaceful relations between the countries. He took the conversation back to the 15th century to point out a precedent for peace and prosperity within the region where they balanced being situated between three major economic powerhouses in today’s China, India and Middle East. He feels today is quite similar except there should not be any Portuguese pirates arriving upon their shores to foul up the economic community they are developing.


Mr. Wolfowitz and Mr. Charon both also pointed out that ASEAN operates on a policy of consensus. On the one hand, this means the AEC region will take time to work out the various moving parts of community agreements. On the other hand, this ensures that when countries ranging from Singapore to Laos come to a common accord, the community will be unified in a solid foundation.


Kirk Wagar, the U.S. Ambassador to Singapore, summarized the sentiment of the panel, “if you’re doing business in Asia, don’t get sucked into China, there’s a better opportunity” in ASEAN countries. He added that Australia and New Zealand have trade agreements with ASEAN countries and that the ties between these nations are also increasing. He believes the successes of today in the region are only a hint of the successes coming in the future.


While the panel tried to make cases for risks to development of the region, all panelists almost as quickly deconstructed the case for risk back to the case for the rewards and promise of the region. Mr. Wolfowitz pointed out that the countries with the lowest GDP in the region, Myanmar and Laos, also have the highest GDP growth rates. The composite picture for region is one of opportunity and growth.


The complete one hour panel discussion is below.


 


 


 



ASEAN A Better Investment Than China For Businesses And Investors

Our "collective responsibility" to develop better workers, create better jobs ...

SINGAPORE — Invoking the spirit of the Pioneer Generation which overcame great odds and helped set the nation on the path of development, Prime Minister Lee Hsien Loong’s May Day speech today (April 30) called on workers and employers to do their part and help create a better Singapore for future generations.


Though many of Singapore’s pioneers had come from other lands, Mr Lee in his message recalled how they came together to battle the Communists and worked with the Government to foster constructive labour-management relations. It was their efforts that built a competitive economy that meant better lives for all, he said.



Today, as Singapore builds on the efforts of the Pioneer Generation, it needs to remember that “developing better workers and creating better jobs is our collective responsibility,” said Mr Lee.


“Each tripartite partner must do their part: Workers must make the effort to train and upgrade themselves. Employers must invest in workers, develop their skills, and make full use of their talents.


“Only then will the Government’s programmes bear fruit. By working together, we strengthen our model of tripartism, and keep it our lasting competitive advantage,” he said.



Mr Lee’s May Day message in full:



“Singapore is undergoing a major transition. Our economy is upgrading qualitatively, and expanding less quickly than before. Last year we did well: Growth was 4.1%, and wages and household incomes rose broadly. This year we expect to grow 2-4%, which is typical of a maturing economy.


We are strengthening our social safety nets to give Singaporeans more peace of mind. MediShield Life and the expanded Community Health Assist Scheme (CHAS) will help Singaporeans meet their medical needs. Permanent GST Vouchers will offset daily expenses. Larger education and pre-school subsidies will benefit all families, especially the lower-income. The Pioneer Generation Package will honour and help the seniors who started us on this nation-building journey.


Pages


Luxury hotel offers helipad as wedding venue in Dubai

The mid-century mechanics magazines were full of wondrous ideas, and back in November 1951 Mechanix Illustrated offered some handy plans for building one’s own 100-mph roadster for just $500. This was the result, as caught by John Lloyd, and it’s apparently still track ready.


Do you have a shot to share? Be sure to add it to the Motoramic group on Flickr, or send us a message via Twitter, Facebook and Google+.



Luxury hotel offers helipad as wedding venue in Dubai

Singapore, Ireland top havens for multinational tax dodgers

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In 2012 almost $40 billion was sent to Singapore, which led the payments table despite being only Australia’s fourth-largest import market that year, according to Department of Foreign Affairs and Trade data.


At more than $7.5 billion, Ireland, which ranks 32nd among Australia’s trading partners, was sixth on the payments table.


Mark Zirnsak, a representative of the Tax Justice Network, said the data demonstrated the need for Australia to be aggressive in its pursuit of companies that shift profits offshore. He said it highlighted the need for greater transparency around corporate transactions to establish which transactions were legitimate and not simply tax dodging.


”There are some very concerning transfers here that need an explanation,” he said. ”If companies aren’t going to voluntarily disclose this information to the public, then there needs to be an explanation as to why money is ending up in these exotic places.”


The ATO data shows that Australia was also on the receiving end of flows from tax havens. Switzerland was the top source of revenue for Australian companies, at $35.6 billion in revenue, and Singapore came second at $12.3 billion.


However, a BusinessDay analysis of the ATO data shows Australian companies paid $1.22 billion more to 26 tax havens, including Singapore, Ireland and Luxembourg, than they received from the same countries.


Almost $60 billion was paid to the 26 havens, which also take in jurisdictions in the Channel Islands and the Caribbean, against about $57.8 million received.


The new data may understate the flows because the ATO only asks for each company’s biggest trades and does not require reports from companies with less than $2 million in overseas related party dealings.



Companies have had to provide the information since the end of 2012 as the ATO stepped up scrutiny of international tax risks.


In its 2012-13 compliance plan, the ATO said these risks ”relate mainly to dealings with related parties and capital transactions”.


”Growth in international related-party dealings exceeds the growth in the economy generally, and accounts for around 50 per cent of cross-border trade,” the ATO said. ”Multinational groups may attempt to structure their global operations to minimise tax costs by, for example, maximising the proportion of their profits recorded in low-tax jurisdictions such as Singapore and Hong Kong.


”Our concern is with related-party dealings that are contrived to avoid paying a fair share of tax on profits earned in Australia.”


The ATO’s latest compliance plan targets companies that ”over or underprice goods and services charged to related companies in other jurisdictions to achieve a tax benefit”.


International tax lawyer Tony Anamourlis, of Templeton Fox Rothschild, said there would be more to come from the ATO as it responded to the OECD, which is leading the push by governments to tighten the tax system.


”The OECD has brought out a draft paper now dealing with tax treaty shopping … that will impact significantly on tax havens and taxpayers.”








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Singapore, Ireland top havens for multinational tax dodgers

BUSINESS IN BRIEF 1/5

Vietnam, RoK to boost agricultural cooperation


Korean agriculture, an extraordinarily efficient and good mix of traditional farming methods mixed with modern technology, was the topic of discussion at a meeting in Hanoi on April 29.


At the event, Deputy Prime Minister Vu Van Ninh told Chairman of the Coordinating Committee of Vietnam-RoK development partnership programme Jun Kwang Woo Vietnam is always receptive to agricultural investment and cooperation opportunities with the RoK, he said.


The Vietnamese Government always looks forward to exploring  new and novel cooperation ideas, creating favorable condition for both nations to boost their economies, he said.


The RoK has become one of the most important trade partners of Vietnam in terms of labour force exports, tourism, foreign investment and trade, he added.


Jun Kwang Woo said in turn that the RoK is more than willing to share experiences and strengthening cooperation in agriculture and rural development, particularly in new rural construction.


He also expressed his strong desire that Vietnam will provide the best possible conditions for Korean financial institutions to invest in Vietnam in the coming time.


Vietnam aims for strong agricultural growth


The decline in agriculture, mirrored by the rural exodus, as the nation moves to a more industrialised society is undermining the nation’s economy as a whole, as many parts of the country are left behind.


Although agriculture continues to play an important part in the national economy, official statistics reflect the sector’s growth has slowed in 2014, a little bit lower than the figure of 2.67% in 2013 and 2.68% in 2012 and 4% in 2011.


In context, the demand and prices for farm produce and commodities began to taper off sharply in 2013 compared to prior years and the trend is continuing in 2014.


As prime examples, in 2013 the price of rice, coffee and rubber commodities decreased by 18.7%, 26.6% and 11.7% respectively.


Prime Minister Nguyen Tan Dung attributes the slow growth of the agricultural sector to an overabundance of  small-scale family farms combined with an insufficient number of large scale production farms, lack of coordination within the sector to work for the common good, and low productivity and poor quality.


Given the backdrop of low demand, low prices and the context of fierce international competition, industry experts predict the growth of the agricultural sector to remain stagnant in line with a slow pace in the development of production methods and competitive edge of farm produce.


Nguyen Do Anh Tuan from the Institute of Policy and Strategy for Agriculture and Rural Development, said that shortcomings in infrastructure, service, and technical standards have significantly weakened the competitive capacity of the agricultural sector, leading to a trade shortfall in the sector dragging down the overall national trade surplus.


These shortcomings have directly led to the hesitancy of domestic and foreign businesses to invest in the agricultural sector, he said.


The World Bank (WB) in turn points to the lackluster labour productivity growth in the  agricultural sector, which is significantly lower than comparable figures from China and Cambodia, as a cause for alarm.


The productivity growth in the agricultural sector only increased from US$200 per capita per year to nearly US$400 per capita per year from 1985 to 2011, the World Bank reports, the lowest level in the ASEAN region.


Factually, Vietnam has devised a scheme of synchronized solutions aimed at improving the added value of farm produce by selecting produce for production based on added value and maximising profits by marketing  products made from unsellable and left over produce.


However, without huge investments from the business community, these solutions lack practicality and cannot help the agricultural sector develop effectively.


Richard F. Doner, from the Political Department of the Emory University emphasises  that upgrading the value chain is extremely  difficult as implementing new technology is much easier said than done, requiring not only huge investment of money but significant training and development of human resources.


Therefore, the government needs to concentrate on devising a more practical and proper mechanism to solve these difficulties, he said adding that the formulation of policies should be initiated in a highly coordinated manner by government agencies, research units, business associations, and public-private consulting companies.


Meanwhile, Tuan said that restructuring the agricultural sector should focus on renovating management by clearly delineating those fields and services which will be administered by the state, leaving the remainder to the private sector.


Additionally, there should be carefully thought out and crafted policies to facilitate the privatisation of the agriculture sector and the establishment of associations to coordinate activities of the sector, he concluded.


Last but not least, Ms Jayati Ghosh, an Economics Professor from Jawaharlal Nehru University in New Delhi, India underscores that a fundamental perquisite for the future development and prosperity of the Vietnamese agricultural sector is the establishment of a legal corridor and support policies for the private sector to get actively involved in production.


Private sector production is the key to agricultural success, and capitalizing on that, a stable farm produce value chain can be constructed, bringing a practical sustainable and stable production model  to agriculture, she concluded.


Economic forum develops practical solutions for 2014


Experts attending the Spring Economic Forum have examined the status of the economy and come up with a number of practical solutions for buoying up the economy which has already bottomed out and is on track to recover.


Participants at the April 28-29 forum in Quang Ninh province shared the view that the economy has weathered the storm and begun to see positive improvements.


The GDP growth rate increased in a quarterly basis; inflation was kept at a low level; Quarter 1 ended with a US$1 billion trade surplus; and the foreign currency market remained stable.


Industrial production began to pick up, with an increasing number of businesses resuming operation and new businesses registering for the first time. Thanks to low interest rates, more businesses are now accessible to bank loans to maintain production.


All the same, many experts were quick to caution that many challenges are still lying ahead. They cited low aggregate demand as a key factor that affects the health of the economy, especially private businesses.


Nguyen Van Giau, Chairman of the National Assembly Committee for Economic Affairs, pointed out that State employee incomes have stagnated and have not increased over the past two years, showing the aggregate demand of the society is rather low.


Experts at the forum also discussed market difficulties, including a lack of adequate policies for implementing a VND30,000 billion stimulate package for the real estate market and the thorny problem of not adequately dealing with non-performing loans.


They agreed that economic restructuring that began a year ago has not met expectations, especially for State-owned enterprises and big economic groups.


Although the public debt is within safe limit approved by the National Assembly, it still remains high. It is important for the State to balance budget to pay debts and ensure expenditure structure to promote economic development.


The State has issued a large amount of bonds, 80% of which have been bought by credit organisations, slowing down capital for production and trading.


The forum also dealt with many other social issues, including labour, employment, education reform, epidemics, and unemployment


Experts proposed that the government mobilise all resources to address pending issues, with a primary focus on economic restructuring, especially in agriculture.


They underlined the need to put FDI allocation under the microscope, giving priority to essential areas and products of higher added value.


Some experts proposed introducing a more flexible exchange rate policy to fuel economic growth, supporting businesses in accessing market, and evaluating the comprehensive impact of the new integration process, taking into account Vietnam-EU Free Trade Agreement negotiations, the establishment of the ASEAN community in 2015 and Trans-Pacific Partnership (TPP) agreement negotiations.


Many participants also agreed that institutional reform costs less but faces the most difficulty as it must be carried out in all fields and levels.


Meeting realizes Vietnam–Singapore connectivity agreement


Vietnam and Singapore have resolved problems arising from implementing their 2005 agreement on economic connectivity (VSAEC) at a ministerial meeting in Singapore on April 29.


At the meeting, co-chaired by Vietnamese Minister of Planning and Investment Bui Quang Vinh and Singaporean Minister for Trade and Industry Lim Hng Kiang, both sides reviewed their achievements in the six cooperation areas of finance, education and training, transportation, information and communication technology, investment, trade and services.


They also discussed new measures to expand economic cooperation in line with each country’s potential and strengths, including the development of Phu Quoc Island in Vietnam’s Kien Giang province.


Under VSAEC signed in 2005, Vietnam has pledged to work closely together with Singapore to undertake initiatives within the agreement and encourage Singaporean businesses to invest in Vietnam to boost mutually beneficial cooperation


The 11th ministerial meeting on economic connectivity will be held in Vietnam in April 2015.


Lang Son, Chinese localities strengthen cooperation


Businesses from Lang Son province are attending the 9th Exhibition on Cultural Products in Yiwu City, Zhejiang province, China from April 27-30.


They are displaying a wide variety of high quality Made in Vietnam products including office supplies, educational aids, souvenirs and a large assortment of traditional cultural products at the event.


They partook in a number of seminars and activities that helped increase their understanding of their Chinese counterparts, and get updated on new products and recent developments in the marketplace.


Yiwu is considered the world’s biggest retail market by the United Nations and the World Bank.


Yiwu International Trade Zone, which covers 5.5 million sq.m, has a special zone for 10 ASEAN countries, including Vietnam.


Vietnamese products, including handicrafts and food, are favoured by Chinese and international wholesalers.


During their stay, Chairman of the Lang Son City People’s Committee Bui Van Coi and Chairman of Yiwu City He Mei Hua signed a framework agreement to promote bilateral cooperation in agriculture, forestry and consumer goods manufacturing.


Attracting more Korean investment into Can Tho


The Mekong Delta city of Can Tho and the Korean Institute of Industrial Technology jointly held a conference on investment promotion in the city on April 29.


Speakers highlighted investment advantages in the City’s industrial zones and high-tech parks in addition to the Tan Loc and Con Son eco-tourism sites.


They specifically identified manufacturing, agriculture, and civil construction as key areas of ideal investment matching the strengths of both the city and the Korean business community.  


A Vietnam-RoK technology nursery project launched in late 2013 at Tra Noc Industrial Zone with total investment capital of US$21.13 million was touted as a prime example of the successes that Korean businesses have experienced.


Once completed, the project will help regional aquaculture, and agricultural and seafood processing businesses access advanced technologies to raise the quality and value of products.


With the project, Can Tho will have a research and development centre for agricultural and seafood processing and mechanical engineering to promote its agricultural advantages and potential.


Japan pulls out of Vietnamese shrimp market


Japanese investors are pulling out of the Vietnamese shrimp market due to excessively high levels of oxytetracycline (OTC), according to the Vietnam Association of Seafood Exporters and Producers (VASEP).


The decision was made due to the continuing detection of unacceptably high levels of OTC in shrimp shipments, despite prior warnings and the fact that it is public knowledge that virtually all Vietnamese shrimp exports are inspected for the antibiotic.


VASEP said that the Japanese importers are considering importing shrimp from India and Indonesia.


VASEP warns that unless local shrimp businesses strengthen self-regulation of OTC they will fail to penetrate the Japanese market.


Still tough to access home loan program


The Ministry of Construction has proposed adding more beneficiaries to the VND30-trillion low-interest home loan program initiated by the Government, but real estate enterprises still find lending requirements complex and attribute this to a slow pace of disbursement.


Deputy Minister of Construction Nguyen Tran Nam has suggested the Government allow households and individual customers of commercial budget housing projects to take out loans from the program. Moreover, the requirements for size and price per square meter should be scrapped and instead the cost of each home or lot apartment should be capped at VND1.05 billion.


The suggestion is not new, however, as some enterprises are doing what he proposed but homebuyers have to shoulder normal interest rates.


Le Ngoc Giau, general director of Tan Hung Investment Joint Stock Company, said homebuyers had signed up to buy many of over 600 apartment units launched by the firm recently. However, they have had to take out normal loans from banks rather than low-interest credit from the stimulus program.


As each condo is measured at 84 square meters, exceeding the 70-square-meter limit set by the VND30-trillion program, homebuyers cannot apply for loans at interest rates lower than commercial ones. Nonetheless, each unit is priced at less than VND1 billion, so the investor is ready to give homebuyers 14 square meters for free, meaning customers have to pay for 70 square meters only, Giau said.


Nguyen Van Duc, deputy director of the Dat Lanh Real Estate Company, told the Daily that that there should be just a single price requirement of below VND1.05 billion instead of the size and unit price requirements as currently applied.


However, Duc said, this should have been put in place last July or August.


The conditions applicable to the stimulus program, if relaxed, will help solve part of people’s housing demand.


The Government should have policies to encourage enterprises develop small units of 40-50 square meters each. HCMC is now coping with a limited supply of small-sized homes due to the rising population, Duc added.


Le Hoang Chau, chairman of the HCMC Real Estate Association, said the new suggestion was only suitable to housing products in HCMC, Hanoi or big cities. This will not work in other parts of the country.


For instance, residents in the Mekong Delta can buy a high-end apartment or even a villa for just VND1.05 billion. If one owns a villa, they are not considered low-income earners, so they are not eligible for the home loan program.


Nguyen Vinh Tran, general director of Nam Long Investment Joint Stock Company, said the requirements are still far from reality.


The firm’s Ehome4-Saigon North project in Binh Duong Province meets requirements of the stimulus program but it has found few customers. While the loans are only extended to Binh Duong residents, potential clients of the project are those from outlying districts in HCMC and migrant workers of industrial parks.


Therefore, Tran suggested the ministry lift the regulation on citizenship status to assist home investors.


Figures of the ministry showed participating banks in the VND30-trillion program had disbursed nearly VND1.7 trillion as of mid-April.


Vietnam’s oldest casino in the red


Haiphong’s Do Son casino saw profits for nearly a decade, but in 2008 started incurring consistent losses totalling VND169 billion ($8 million) by 2012.


The news was released at a recent meeting on reviewing the five-year implementation of the Resolution of the tenth Central Party Committee meeting on continuing to perfect a socialist-oriented market-based economy.


The report states that Do Son casino, licensed in 1992 as Vietnam’s pilot casino model, has slipped into hardship, as reported by vef.vn. The casino achieved profitability in 1998, which lasted until 2007.


But in 2008 it started seeing losses that amounted to $8 million as of 2012. The casino has paid an average of VND23.5 billion ($1.1 million) in taxes each year.


As of 2013, it employed 417 workers, 394 of whom were Vietnamese and the rest foreigners.


Despite its poor performance in recent years, the casino’s employees still enjoy quite a high rate of pay. Vietnamese managers earn an average of $800 per month while the foreign managers take down around $2,300.


Haiphong management authorities have said that since the casino was opened, it has helped drive tourist numbers.


Do Son beach and Cat Ba are Haiphong’s tourism centres and have seen hundreds of millions of dollars go toward making them tourist hubs of national significance.


According to a National Assembly Finance and Budget Commission report released in February, Ho Tram casino – a major gambling venue in the country in southern Ba Ria-Vung Tau province – reported revenues of $5.5 million with 35,877 visitors in just seven months operating. In that time, Ho Tram has already paid more than $2.8 million to the state budget.


The Ministry of Finance’s figures show that the now five trial casinos, based in Haiphong, Lao Cai, Danang and Quang Ninh, have posted total revenue of VND930 billion ($44 million).


SMEs struggling to borrow while banks sitting on huge cash piles


Banks are sitting on huge cash piles at the moment but gaining access to loans is no easy task for small and medium enterprises (SMEs), according to the 2030 Businessmen Club under the Saigon Times Club.


SMEs said at a seminar at the Saigon Times Group office in HCMC last week that they had found it extremely tough to ask banks for a loan though banks said they had ample cash to lend.


Nguyen Ngoc Ha, director of HD Bank’s Nguyen Trai branch, said many SMEs had failed to meet banks’ lending requirements. Banks often have a different approach to working with SMEs, he said, noting a good business plan and a good financial statement would not suffice.


Banks, he said, know enterprises always have at least two financial reports with one for lenders and one for the taxman. Some enterprises even have more than two reports, Ha said.


Before deciding on a loan, banks should look into the fields where the borrower is active and how the management of the borrowing firm behaves, he said.


Banks also look at the way the borrower manages their cash flows, deals with unforeseen circumstances, and uses their long-term and short-term capital, he added.


Ha Xuan Anh, chairman of Son Viet Garment JSC based in HCMC, said lender banks always asked his firm whether it had assets for collateral to take out loans.


Vung Ro refinery developer refuses land


The UK’s Technostar Management Limited – developer of the $3.18 billion oil refinery and petrochemical project in the central Phu Yen province last week refused the cleared land handed over by provincial authorities.


According to local newspaper Vnexpress, the investor said the land which the local authorities tried to turn over to them was not fully cleared.


They explained that many fisheries were still active on the site.


The chairman of the Phu Yen Provincial People’s Committee Pham Dinh Cu, confirmed the news, saying that the land to be handed over to the investor was around 134 hectares in the province’s Dong Hoa district.


“We [the province] have finished land clearance and compensation procedures and so far have paid VND100 billion ($4.76 million) for the first phase of the project. But there are still 15 households and around 20 shrimp ponds that have not yet been moved,” Cu said.


Cu confirmed that the investor had reason to refuse the land, as local authorities have been slow in dealing with the issue. Cu also blamed farmers for continuing to farm shrimp at the location, despite already receiving compensation.


“The province is committed to forcing them off the site and giving the land as agreed to the investor by the beginning of May,” he added.


He continued by saying that committee would support the investor in its plans to start the project by July.


Vung Ro refinery’s EPC contract was signed in October last year between the investor and Japan’s JGC Corporation. The plan states that by the end of June the committee would finalise disbursement of VND300 billion ($14.28 million) for compensation of another 404 hectares of land for the second phase of the refinery.


Vung Ro Petroleum’s original investment certificate had a planned output of four million tonnes of crude oil, but the investor revised this to eight million tonnes to enhance efficiency.


The complex is slated to start commercial operations by 2016 and will produce a wide range of products including gasoline, polypropylene, benzene, toluene, xylene and diesel. The products will be distributed domestically and exported.


With a total investment of $3.18 billion, Vung Ro would be the biggest FDI project thus far in Phu Yen. The investor claimed that once operational the refinery would contribute more than $110 million per year to the local budget and create more than 1,300 jobs.


Phenikaa builds $87 million compound quarzt slab factory in Hoa Lac


Vietnam’s A A Green Phenix Company (PHENIKAA) will build an $87 million plant for manufacturing quartz slabz made by bonding together quartz grits and powder with unsaturated  polyester resin, using vacuum-vibro press technology that is exclusive technology transferred from Italy’s Breton.


Located in Hanoi’s Hoa Lac Hi-tech Park, the project will include two phase. In the first phase, Phenikaa will invest $59 million for a production line with the total capacity of 600,000 square metres of high class stone a year. The second phase, planned for 2017-2018 period, will have the total investment cost of $28 million that will expand the total production capacity up one million square metres of high class a year.


Phenikaa announced that it signed a technology transfer contract with Italy’s Breton for applying the latest technology in the production line, manufacturing quartz slabs with 90 per cent made from pure natural quartz. The production line is designed with the optimised layout and process allowing making the superior products that no company in the country has ever applied before and that others may have much difficult in copying. The line will also help Phenikaa improve quality and capacity under the tough weather (tropical-high humidity) condition in Vietnam, .


According to the signed contract, the Vietnamese company has got the exclusivity in buying machine and transferring this exclusive technology from Breton company in Vietnam within six years from 2014. This means, no company in Vietnam can by production technology from Italy’s Breton, a well-know stone manufacturing technology provider in the world, from now to 2020.


With the optimised designed production line and, Phenikaa expects it would provide the best quality and luxury quartz products to Vietnamese and the world market. Right now, the first phase of the manufacturing facility is under the construction. The manufacturer expects to start its mass production in June 2015.


Vingroup announced incentives on office leasing


Vincom Office Company, an arm of Vingroup has announced its special lease programme named “Golden Opportunity 2014” to woo tenants for its office projects for lease.


Under this programme, from April 15 to July 15, new tenants will benefit from special incentives and preferential lease conditions when leasing an office space in the flagship developments of Vingroup being Royal City and Times City in Hanoi and the Vincom Center Dong Khoi in Ho Chi Minh City


During this three month period, new office tenants will be offered special lease incentives including VIP staff privileges at the building’s facilities and complementary services, with specific terms and conditions applying to each project.


Accordingly Vincom Office Company provides flexible office solutions, accommodates demand from 100m2 to 4,000 m2 on a single floor area, in addition to impressive ceiling heights, spacious floor layouts, efficient vertical transportation and amenities at international standards, combined with a smart underground parking system covering a total area of over three hundred thousand square meters.


These office components are all integrated within multi-purpose developments that provide banking, healthcare, modern residential living, shopping, leisure and dining outlets. This unique all-in-one offering, combined with prime locations ensures that Royal City, Times City and Vincom Center Dong Khoi are the most exciting working environments in their respective cities.


This incentive is applied for a range projects including the whole floor area of the second floor of Royal City, Times City; a part of R6 (Royal City); 5-storey building – Tower 1 (Times City) and office space at Vincom Center Dong Khoi, all are in prime locations.


Vincom Office Company is a member of Vingroup – a leading commercial property company that provides international standard office management and marketing; established in 2013. Vincom Office currently manages office space in three major developments: Royal City and Times City (Hanoi) and Vincom Center Dong Khoi (Ho Chi Minh City).


Lotte gets nod to build $2 billion Smart Complex


Lotte Consortium – a joint venture between Korea’s Lotte and Japanese investors – was recently granted in-principal approval to develop the company’s proposed Smart Complex.


The $2 billion complex is planned for 2A area in the Thu Thiem New Urban Area in Ho Chi Minh City’s district 2. Lotte has said it plans for the complex to be a landmark of the city and greater South East Asia.


According to Kim Min Geun, vice president, head of Overseas Mixed Used Development Division of Lotte Asset Development, Lotte Centre Hanoi and the Smart Complex are key in the company’s Vietnam development plans and Lotte aims to lead international development in the future with its expertise in mixed-used development.


The Thu Thiem New Urban Area is being developed by the Ho Chi Minh City People’s Committee to match up with Hong Kong’s International Finance Centre and Shanghai’s Pudong. City authorities have been pushing the urban area as a priority since 2002.


The Smart Complex is planned as a commercial and residential centre with multiple shopping complexes, hotels, serviced residences, offices and apartments.


Lotte Consortium plans to complete the master plan this year and carry out phased developments as infrastructure construction allows.


The complex will be pioneered in Vietnam with the aim of expanding the model to many other countries in the coming time.


This is Lotte’s second property development planned for Vietnam, following the now under-construction Lotte Centre Hanoi, slated to open later this year and which will be the second tallest building in Vietnam with 65-storeys.


Lotte Centre Hanoi, once open, will feature a 5-star hotel, offices, luxury serviced residences and an observation deck on the 65th floor, which it hopes will be one of the most visited attractions in Hanoi.


Rise in Vietnam’s real estate revenue


The property market has begun to show positive signs, with a recent increase in capital inflows.


Construction Minister Trinh Dinh Dung reported that by mid-April, the number of transactions in the real estate market in Hanoi doubled compared with last year’s final quarter.


Meanwhile, the State Bank of Vietnam (SBV) said that by the end of March, investment credit and real estate business increased by 3.95%, much higher than last years’ figure of 1.09%, for the first quarter.


Foreign capital inflows into Vietnam’s real estate are higher than other fields.


According to the Foreign Investment Agency, up until April 20, 2014, the property market ranked second in attracting FDI with additionally increased and newly-registered capital hitting US$392.3 million, accounting for 8.1% of total investment. In particular, an apartment project in HCM City’s Binh Thanh district has been licensed with investment capital totaling more than US$200 million.


Earlier, in the first quarter of the year, the real estate market also ranked second in attracting FDI with additionally increased and newly-registered capital reaching US$288.3 million, making up 8.6% of total investment.


Nha Trang Bay luxury resort project still faces delay


Nearly a year after getting its new investment certificate, the multi-million dollar Nha Trang Bay luxury resort project has yet to restart construction, though the new developer committed to starting operations within two years.


In May 2013, after a new investment certificate was signed for the VND1.2 trillion ($57 million) resort project, formerly named Rusalka and now named Champarama Resort and Spa, the developer – Focus Travel Nha Trang JSC – committed to opening the project two years later.


In actuality, the project was first suspended nine years ago in 2005, and still it faces the same problems it did then and has even added a few to the list.


One of the main reasons behind the delay was its conflict with Nha Trang Bay plans, currently in development by the Khanh Hoa province People’s Committee, said Vo Tan Thai, director of the province’s Department of Planning and Investment.


There have been different opinions on plans for the bay, particularly a great deal of opposition from the Ministry of Culture, Sports and Tourism, as well as scientists and architects, as several investment projects are not correlative with the Law on Cultural Heritage.


According to Thai, at present there is no word on as to when the project will restart construction.


“The planning issues have been resolved, but many procedures have yet to be completed. At present, the developer is still working on getting a building permit to restart the project,” he added.


Another pending issue is a debt from the old developer – investment and tourism development company Rus-Inves-Tur (RIT).


To take up the project, the new developer Focus Travel agreed to inherit all of the rights and responsibilities but also debts of their predecessor.


Some of the debts have been resolved, but one with the BMC Building Materials Co Ltd. under the Ministry of Industry and Trade remains outstanding.


The initial debt was for VND51.6 billion ($2.4 million), but BMC now lists it as VND275.5 billion ($13.1 million).


After the province granted the project it’s new investment certificate last year, BMC filed petitions requesting unsettled problems be resolved, particularly debt obligations, before handing the project to a new developer.


BMC’s complaints even reached the desk of the prime minister.


Last Thursday, Khanh Hoa People’s Committee hosted a meeting to settle these issues.


It is expected that the province will soon issue a document detailing resolutions.


The erstwhile Rusalka project received the investment certificate in 2000 and was set to set up a tourism complex spanning 43.5 hectares that cost some $15 million.


It was invested by RIT, chaired by Nguyen Duc Chi. In 2005 Chi was arrested under charge of “frauds and appropriation of others’ assets.” The project thus came to a halt, had its assets frozen and the licence revoked in 2006, and ended up being liquidated in mid-August 2011, under an order by the prime minister.


In April, 2010, however, the Supreme Court overturned the accusations against Chi, and all assets were returned to Chi. Six months later, the prime minister assigned Khanh Hoa’s authorities to establish new legal entity to continue the project to ensure the investor’s benefits and reduce financial damages.


RIT’s former chairman Chi then proposed to have Focus Travel Nha Trang take over the project, a request that was green-lighted by the coastal province’s authorities. Focus Travel Nha Trang was chaired by Nguyen Duc Tan, who is Chi’s brother.


Buying rental property trends in HCM City


Many in HCM City have turned to buying homes to rent in the context of a sharp fall of deposit interest rates and the frozen real estate and stock market.


A recent study by CBRE Vietnam indicated that the leasing out is an important factor in the decision to buy a home for Vietnamese people, particularly in HCM City, and this trend has become more popular in this city.


According to CBRE, the Vietnamese real estate market is facing a continued slump, which makes for an opportune time to buy houses with an intention to rent them out. Rental properties can bring investors a stable source of income, and when the property market recovers, they can sell the houses at a profit.


Truong An Duong, Savills Vietnam’s Associate Director of Advisory Residential Services, said that only around 4,000 apartments are rented foreigners in HCM City, while the number of foreigners in HCM City is quite high, creating a potential market for rental property owners.


The trend is not new, but has grown stronger in HCM City recently because of its low risk and high potential returns.


According to Mr. Truong Nam Duong, apartment projects in Binh Tan District, District No. 2 and Nam Sai Gon area have attracted the most customers.


The Phu My Hung urban area located, at Nam Sai Gon, is one of the most desirable apartment projects in HCM City among foreigners. A 70-square metre room there is leased for around USD800 per month.


Policies to revive property market


The state has offered credit packages for the local real estate market and will amend more regulations and policies to promote further recovery in the local market, noted experts.


During an online dialogue on the property market 2014: opportunities from policies held by the dddn.com.vn, the online Dien dan Doanh nghiep newspaper yesterday in Ha Noi, Phan Thanh Mai, the general director of the Bank of Construction, stated that the local property market has shown positive development over the past few months, including financial solutions from banks – VND30 trillion and VND50 trillion stimulus packages.


The VND30 trillion package, one of the government programmes, is aimed at providing credit for social housing projects. The package will help investors develop the social housing segment to meet the people’s demands and help to push down the prices of housing apartments, thereby creating conducive factors to remove stagnation in the local property market, Mai added.


Meanwhile, the VND50 trillion package, which was recently released, is a commercial credit package for contractors, investors, and building material producers in the property sector, he remarked.


Banks will manage credit to use the money for the right purposes. The state expects that with the introduction of the package, investors will have more investment capital and the prices of building material products will also drop. Thus, the prices of houses and apartments will have a chance to fall against the current prices.


The state expected that the package would provide needed capital for unfinished property projects, Mai reported.


The two credit packages were aimed to achieve different purposes and expected to boost the market, he added.


However, according to Nguyen Huu Cuong, the chairman of the Ha Noi Real Estate Club, experts and even members of the National Assembly are of the viewpoint that disbursement of the VND30 trillion package is slow.


The slow disbursement might not mean that is unsuccessful, Cuong pointed out.


The package for social apartment projects, including buyers and investors with low interest rates, was issued at the right time when the market had fallen into serious crisis, he claimed.


The slow disbursement of the package was partly due to slow reaction by the people and enterprises towards the package, while on the other hand, procedures on appraising and approving the projects had been carefully implemented, he noted.


The package, a financial tool by the Government, had positive effects on the securities market to push the VN Index from 397.6 points at the end of 2012 to 569.87 points on Tuesday and lured US$21.6 billion investment into the property sector, he emphasised.


This support from the Government helped the local property market to cover losses and aided the development of the apartment segment having a selling price of around VND20 million per square metre. The package had saved 61,000 enterprises having thousands of property projects to avoid closure and bankruptcy, he explained.


Therefore, the package is expected to prove its efficiency in the future, as the package is effective until 2020.


Additionally, according to Nguyen Manh Ha, the director of the House Management Department, under the Ministry of Construction, the ministry and related ministries and sectors will amend the laws on trading property, construction, and housing to deliver more houses for the people and encourage all the economic sectors to invest into property products for the people.


Those laws will help people of the low-income group to own apartments and help the property market to have transparent development.


Cuong remarked that the amendment of the laws would abolish the administrative barriers for site clearance, create transparency in the market, and increase the prices of property products.


Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR



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