British Barclays PLC has announced it will provide financial security worth VND12.5 billion through a partnership with CARE International to help disadvantaged young people in the Mekong Delta province of Long An.
This marks the first step taken by the banking corporation to enter the Vietnamese market where it is planning a long-term investment strategy.
The financial partnership between Barclays and CARE International, the world’s largest independent relief and development organization, will benefit around 10,000 young people in Long An, who are dealing with unemployment.
Barclays top executives told reporters in Hanoi on Tuesday during their Vietnam visit that through the financial support, they were helping people help themselves.
“We do not give people fish, what we give them is the way to fish,” said Marcus Agius, chairman of Barclays PLC. He furthered that the partnership with CARE International is a demonstration of Barclays commitments to Vietnam.
As part of a partnership project valued at 10 million pounds that Barclays is working with two NGOs, CARE International and Plan International, the financial assistance for Long An young people will be achieved by testing a new savings and loans model and subsequently linking them to formal microfinance institutions.
According to Barclays, a targeted component of financial literacy and entrepreneurship will be delivered to 10,000 young beneficiaries in the province to help them reduce poverty and unemployment.
Agius explained that this 10 million-pound partnership would strengthen and build upon the traditional financial systems that are utilized by the un-banked population in developing nations. This will benefit disadvantaged communities through enabling them to secure a more sustainable financial future.
CARE International will help deliver the financial aid to 10,000 disadvantaged people through traditional financial structures, such as village savings and loans associations (VSLA), self-help groups and revolving funds.
Peter Newsum, country director for CARE International in Vietnam, said after the initial partnership in Long An, the two sides would revise how the project works and then consider if more projects could be included.
“We chose Long An as the province has a number of jobless young people as part of impacts from urbanization. They have to seek job opportunities in cities and we would like to give a helping hand to them,” he stated.
Agius said Barclays was seeing potentials in investment banking and investment management services in Vietnam’s financial market.
“Barclays has a twin-track strategy: crisis management in short term and strategic momentum maintenance for long term. We could be happy to do it here." (SGT)
Saturday, February 28, 2009
Rice exports robust at start of year
Viet Nam exported 1.05 million tonnes of rice, earning almost 480 million USD, during the first two months of this year, according to the Ministry of Agriculture and Rural Development.
Both the amount and value of the rice were more than double the figures recorded during the corresponding period last year. In February alone, the country exported 750,000 tonnes of rice.
However, other agro-forestry-fisheries products experienced a drop in export values over the same period, earning nearly 2 billion USD, or 5.3% lower than the same period last year.
Coffee exports fetched 411 million USD from the sale and shipping of 267,000 tonnes, a fall of 11.5% in value against the first two months of 2008.
Rubber export turnover plummeted by 50% to 85 million USD, due to a steady fall in prices over the past year.
The export of fisheries products also suffered a decline in value, posting a turnover of 415 million USD during January and February, down by 15.5% year-on-year. (VNA)
Both the amount and value of the rice were more than double the figures recorded during the corresponding period last year. In February alone, the country exported 750,000 tonnes of rice.
However, other agro-forestry-fisheries products experienced a drop in export values over the same period, earning nearly 2 billion USD, or 5.3% lower than the same period last year.
Coffee exports fetched 411 million USD from the sale and shipping of 267,000 tonnes, a fall of 11.5% in value against the first two months of 2008.
Rubber export turnover plummeted by 50% to 85 million USD, due to a steady fall in prices over the past year.
The export of fisheries products also suffered a decline in value, posting a turnover of 415 million USD during January and February, down by 15.5% year-on-year. (VNA)
The Vung Anh resettlement project gets under way
A ground-breaking ceremony to inaugurated the building of the Vung Anh national key resettlement in Ky Lien Commune, Ky Anh District, Ha Tinh Province was held on February 26th.
The new resettlement area will cover 100 ha, and be capable of accommodating some 200 households.
According to the investor and entrepreneur, a modern and synchronic infrastructural system containing road networks, water and electricity supply, communications networks, a hospital and schools will be built first.
The designers have also provided for various different architectural designs in the new homes for the residents of the future resettlement to choose from.
The Vung Anh resettlement area is one of the 5 resettlement areas that Ha Tinh Province, in coordination with investors, has planned for 3,029 households in the communes of Ky Loi, Ky Phuong, Ky Thinh, Ky Long and Ky Lien, who have to give up their homes and land for industrial and service projects.
Each home will be built on an area of some 400 square meters in the new village. (DDDN)
The new resettlement area will cover 100 ha, and be capable of accommodating some 200 households.
According to the investor and entrepreneur, a modern and synchronic infrastructural system containing road networks, water and electricity supply, communications networks, a hospital and schools will be built first.
The designers have also provided for various different architectural designs in the new homes for the residents of the future resettlement to choose from.
The Vung Anh resettlement area is one of the 5 resettlement areas that Ha Tinh Province, in coordination with investors, has planned for 3,029 households in the communes of Ky Loi, Ky Phuong, Ky Thinh, Ky Long and Ky Lien, who have to give up their homes and land for industrial and service projects.
Each home will be built on an area of some 400 square meters in the new village. (DDDN)
Vietnamese economy will revive quickly
The completion of the Vietnam-China land border demarcation and marker planting was highlighted by the Guangxi daily newspaper on February 24th.
The solemn article with pictures was published on the front page of the daily.
Meanwhile, another article giving expert assessments of the Vietnamese economic situation was published on the on-line edition of the Guangxi daily.
The article said, “The Vietnamese economy will recover quickly from the global financial crisis.”
The reporter who wrote the aritcle stressed that Vietnam, with its socio-political stability, plentiful natural and human resources, strong consumer market and continuously improving investment environment will be one of just a handful of nations with the best conditions for economic development in 2009.
According to the writer, Vietnam would be able escape from the current financial crisis, and begin t
The solemn article with pictures was published on the front page of the daily.
Meanwhile, another article giving expert assessments of the Vietnamese economic situation was published on the on-line edition of the Guangxi daily.
The article said, “The Vietnamese economy will recover quickly from the global financial crisis.”
The reporter who wrote the aritcle stressed that Vietnam, with its socio-political stability, plentiful natural and human resources, strong consumer market and continuously improving investment environment will be one of just a handful of nations with the best conditions for economic development in 2009.
According to the writer, Vietnam would be able escape from the current financial crisis, and begin t
Ferrochrome plant construction begins in Thanh Hoa
The Nam Viet Corporation commenced work on the construction of a Ferrochrome manufacturing plant in Trieu Son district of Central Thanh Hoa province on February 26.
The 1.5 trillion VND plant, the first of its kind in Vietnam, will use European technologies with a designed capacity of 200,000 tonnes of products per year.
The plant is expected to be completed within 36 months. Once operational, it will employ thousands of local workers.
The 1.5 trillion VND plant, the first of its kind in Vietnam, will use European technologies with a designed capacity of 200,000 tonnes of products per year.
The plant is expected to be completed within 36 months. Once operational, it will employ thousands of local workers.
Sunday, February 22, 2009
First PE fibre facility planned
Vinatex is looking to build the first polyethylene (PE) fibre plant in Vietnam, to serve domestic textile and apparel production.
Construction of the plant, which will be a joint venture between Vinatex and Vietnam Gas and Petrolium Group PetroVietnam, is scheduled for the second quarter of 2008 at Dung Quat Economic Zone near Dung Quat oil refinery complex.
The PE fibre plant will cost VND3,000bn (US$187.5m), and production of the fibres themselves will use petrochemical products from Dung Quat Oil refinery complex.
Vietnam's textile and garment industry has previously performed stages like reeling fibre, knitting, dyeing, but PE fibre production is an entirely new field for the country.
Construction of the plant, which will be a joint venture between Vinatex and Vietnam Gas and Petrolium Group PetroVietnam, is scheduled for the second quarter of 2008 at Dung Quat Economic Zone near Dung Quat oil refinery complex.
The PE fibre plant will cost VND3,000bn (US$187.5m), and production of the fibres themselves will use petrochemical products from Dung Quat Oil refinery complex.
Vietnam's textile and garment industry has previously performed stages like reeling fibre, knitting, dyeing, but PE fibre production is an entirely new field for the country.
Belgium and Vietnam promote textiles
The Belgian government has committed to providing EUR 1 million for a project to strengthen the capacity in researching, training and developing textile technique testing of the Textile Research Institute (TRI).
Deputy Minister of Industry and Trade Bui Xuan Khu and Belgian Ambassador to Vietnam Hubert Cooreman signed an agreement to this effect in Hanoi on January 22.
The project will help TRI gain self-control in finance and become a leading textile research institute in Vietnam.
The project will focus in increasing the capacity for the Textile Research Institute through R&D activities, transfer of technology, testing and training.
The project will be carried out within 36 months.
Deputy Minister of Industry and Trade Bui Xuan Khu and Belgian Ambassador to Vietnam Hubert Cooreman signed an agreement to this effect in Hanoi on January 22.
The project will help TRI gain self-control in finance and become a leading textile research institute in Vietnam.
The project will focus in increasing the capacity for the Textile Research Institute through R&D activities, transfer of technology, testing and training.
The project will be carried out within 36 months.
Banking - Finance, FDI, Viet Nam Dong - VND
The Foreign Investment Law was issued on December 29, 1987. It was one of the first laws issued during the renovation period. The promulgation of the Foreign Investment Law has institutionalised the Party and State’s policies in effectively attracting foreign investment capital. It is regarded by the international community to be a transparent, attractive code and basically conforms with the international norms. Within the context of fierce competition in attracting foreign investment regionally and globally, the Foreign Investment Law in Vietnam has been a vital lever in attracting foreign investment to Vietnam.
Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam.
Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries.
Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation.
By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital.
Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date.
In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007.
From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP.
In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services.
Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital.
From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital.
Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh.
Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital.
Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital.
Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential.
To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America.
The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth.
Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors. (Nhan Dan)
Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam.
Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries.
Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation.
By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital.
Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date.
In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007.
From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP.
In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services.
Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital.
From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital.
Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh.
Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital.
Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital.
Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential.
To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America.
The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth.
Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors. (Nhan Dan)
Dollarization domination
Dollarization in Vietnam is estimated by the State Bank of Vietnam at 21%, relatively high when noting that the figure is 9% in China and 1% in Thailand. Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam, discussed how serious dollarization is in Vietnam and how to fix the problem.
He said that the Government has asked the State Bank of Vietnam (SBV) to draw up a master plan on reducing dollarization. The plan needs to improve the convertibility of the VND and the value of the VND in international transactions.
Could you please tell us more about the plan?
Previously, experts once suggested that all sums of money transferred from abroad into Vietnam should be converted into VND. However, the Government and central bank decided against this after thorough consideration. Right after this suggestion was made public, the foreign currency inflow into Vietnam decreased sharply.
Therefore, measures to reverse dollarization must be flexible and not extreme, and it is clear that direct intervention or administrative orders are not the right measures. This is the most important requirement for the plan.
Second, measures must ensure that depositors and enterprises have higher confidence in the commercial bank system
Third, it is necessary to make the cost of VND transactions lower compared to US$ transactions, which will help improve the convertibility of the local currency.
Fourth, it is necessary to stabilize the economy, which will result in people having more confidence in the local currency, and get them to keep VND in their wallets.
However, I have to acknowledge that to some extent, we cannot absolutely eliminate the dollarization of the national economy.
IN 2007, the foreign portfolio investment capital into Vietnam reached $6.2bil. Can you see any link between this and dollarization?
As we open the national economy, more and more foreign capital will enter, and if the foreign capital is overly high compared to the absorbability of the national economy, the supply of foreign currencies will be profuse, and dollarization will increase.
We have many choices of ways to deal with the problem. The Government is pursuing the principle that the central bank will continue buying foreign currencies to stabilize the value of the VND. Also, we need to take measures to control the VND supply in order stunt inflation. These steps were taken, to some extent, in 2007, and we will continue them in 2008.
Some experts have suggested that Vietnam should allow foreign investors to open foreign currency accounts to make securities transactions. If so, Vietnam can reduce dollarization, successfully control inflation, while foreign currencies in accounts at commercial banks can still produce profits for money owners. What do you think about this?
I have heard this suggestion. However, it may be contrary to the regulations stipulated in the Ordinance on Forex Management. The ordinance says that all foreign money must be transferred into Vietnam through a special account, and after that, the money must go into investments. (VNeconomy)
He said that the Government has asked the State Bank of Vietnam (SBV) to draw up a master plan on reducing dollarization. The plan needs to improve the convertibility of the VND and the value of the VND in international transactions.
Could you please tell us more about the plan?
Previously, experts once suggested that all sums of money transferred from abroad into Vietnam should be converted into VND. However, the Government and central bank decided against this after thorough consideration. Right after this suggestion was made public, the foreign currency inflow into Vietnam decreased sharply.
Therefore, measures to reverse dollarization must be flexible and not extreme, and it is clear that direct intervention or administrative orders are not the right measures. This is the most important requirement for the plan.
Second, measures must ensure that depositors and enterprises have higher confidence in the commercial bank system
Third, it is necessary to make the cost of VND transactions lower compared to US$ transactions, which will help improve the convertibility of the local currency.
Fourth, it is necessary to stabilize the economy, which will result in people having more confidence in the local currency, and get them to keep VND in their wallets.
However, I have to acknowledge that to some extent, we cannot absolutely eliminate the dollarization of the national economy.
IN 2007, the foreign portfolio investment capital into Vietnam reached $6.2bil. Can you see any link between this and dollarization?
As we open the national economy, more and more foreign capital will enter, and if the foreign capital is overly high compared to the absorbability of the national economy, the supply of foreign currencies will be profuse, and dollarization will increase.
We have many choices of ways to deal with the problem. The Government is pursuing the principle that the central bank will continue buying foreign currencies to stabilize the value of the VND. Also, we need to take measures to control the VND supply in order stunt inflation. These steps were taken, to some extent, in 2007, and we will continue them in 2008.
Some experts have suggested that Vietnam should allow foreign investors to open foreign currency accounts to make securities transactions. If so, Vietnam can reduce dollarization, successfully control inflation, while foreign currencies in accounts at commercial banks can still produce profits for money owners. What do you think about this?
I have heard this suggestion. However, it may be contrary to the regulations stipulated in the Ordinance on Forex Management. The ordinance says that all foreign money must be transferred into Vietnam through a special account, and after that, the money must go into investments. (VNeconomy)
Nexans to reap 80 million USD this year
Nexans Group in Viet Nam plans to earn US$80 million in revenue this year, up 10 per cent from last year.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
Enterprises to require legal framework for franchise development
Vietnam's enterprises will require a strong legal framework including government legislation and supporting policies to develop franchises in the coming years, according to economists at a symposium held in HCMC late last week.
Economists at the Franchise Vietnam 2008 conference stated that franchising is a relatively new concept in Vietnam, and in order for it to develop stably, the central Government should improve the legislative sectors.
Pham Chi Lan, an economic expert, said Vietnam needs to continue to improve commercial law, intellectual property law, standards for goods and protocols for solving commercial disputes.
"If these four legislative improvements are executed, franchises will develop more stably because the risk of commercial dispute in franchising is predictable," said Lan.
According to economists, franchises have been developing in Vietnam for the past two years. However, few enterprises or trademarks were able to successfully franchise until now.
Le Cong Dinh, a lawyer from DC law firm, said most of Vietnam's 65 franchises are foreign-owned. However, after the country's inclusion into the World Trade Organization there has been a surge in franchise development.
Ly Qui Trung, chairman of the Nam An Group which owns Pho 24, said that enterprises should apply these four steps in franchising nationally and internationally: franchising demand specification, partner selection, partner examination and partner negotiation. "The enterprise's franchise development could be impeded if one of the four steps is neglected," Trung said.
The development of domestic and foreign franchises will be crucial for commercial activities, especially in the service sector. It is predicted that franchises will be fully developed in Vietnam by 2012, said Tran Anh Tuan of the FT-Pathfinder Consulting Group.
"The enterprises need more supporting policies from the government in the legislative and administrative sectors, so that they can successfully conduct franchising activities in the country," said Tuan. (SGT)
Economists at the Franchise Vietnam 2008 conference stated that franchising is a relatively new concept in Vietnam, and in order for it to develop stably, the central Government should improve the legislative sectors.
Pham Chi Lan, an economic expert, said Vietnam needs to continue to improve commercial law, intellectual property law, standards for goods and protocols for solving commercial disputes.
"If these four legislative improvements are executed, franchises will develop more stably because the risk of commercial dispute in franchising is predictable," said Lan.
According to economists, franchises have been developing in Vietnam for the past two years. However, few enterprises or trademarks were able to successfully franchise until now.
Le Cong Dinh, a lawyer from DC law firm, said most of Vietnam's 65 franchises are foreign-owned. However, after the country's inclusion into the World Trade Organization there has been a surge in franchise development.
Ly Qui Trung, chairman of the Nam An Group which owns Pho 24, said that enterprises should apply these four steps in franchising nationally and internationally: franchising demand specification, partner selection, partner examination and partner negotiation. "The enterprise's franchise development could be impeded if one of the four steps is neglected," Trung said.
The development of domestic and foreign franchises will be crucial for commercial activities, especially in the service sector. It is predicted that franchises will be fully developed in Vietnam by 2012, said Tran Anh Tuan of the FT-Pathfinder Consulting Group.
"The enterprises need more supporting policies from the government in the legislative and administrative sectors, so that they can successfully conduct franchising activities in the country," said Tuan. (SGT)
Gold prices go up again to be over VND17 million/tael
After dropping to below VND17 million/tael, the lowest level during the previous two weeks, the price of gold once again has fluctuated wildly and is currently trading at over the VND17 million/tael mark.
The domestic price of gold suddenly increased because of a dramatic rise in the world price of gold on Tuesday night, with the Federal Reserve System (FED) surprisingly cutting US$ interest rate by 0.75 percent, from 4.25 percent to 3.5 percent, with the aim of steadying the world’s biggest economy which is currently in critical condition.
The US dollar continued devaluing against the Euro. The price of gold at spot delivery in New York instantly shot up to reach over US$890/oz.
On the domestic market, SJC gold at the Sai Gon Gold, Silver and Gem Stone Company is trading at VND17.13-17.23 million per tael at present, up VND470.000/tael compared with Tuesday’s transactions. The price is applied commonly in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang and Can Tho.
At 2pm on Wednesday, the price of gold at the Phu Quy Gold, Silver and Gem Stone Company in Hanoi stood at VND17.12-17.24 million per tael, up VND240,000/tael compared to the previous day.
At Bao Tin Minh Chau in Hanoi, the price of gold slightly increased but the number of people, particularly those coming to sell rather than buy gold, undertake transactions at the company remained almost the same.
The domestic price of gold suddenly increased because of a dramatic rise in the world price of gold on Tuesday night, with the Federal Reserve System (FED) surprisingly cutting US$ interest rate by 0.75 percent, from 4.25 percent to 3.5 percent, with the aim of steadying the world’s biggest economy which is currently in critical condition.
The US dollar continued devaluing against the Euro. The price of gold at spot delivery in New York instantly shot up to reach over US$890/oz.
On the domestic market, SJC gold at the Sai Gon Gold, Silver and Gem Stone Company is trading at VND17.13-17.23 million per tael at present, up VND470.000/tael compared with Tuesday’s transactions. The price is applied commonly in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang and Can Tho.
At 2pm on Wednesday, the price of gold at the Phu Quy Gold, Silver and Gem Stone Company in Hanoi stood at VND17.12-17.24 million per tael, up VND240,000/tael compared to the previous day.
At Bao Tin Minh Chau in Hanoi, the price of gold slightly increased but the number of people, particularly those coming to sell rather than buy gold, undertake transactions at the company remained almost the same.
US recession hits global economy, Vietnam may avoid large losses
As Vietnam has become increasingly integrated into the global economy, it will become more susceptible to worldwide economic shifts, including the most recent possibility of an international recession; however, the influence will not as major as players deeply intertwined with major market motivators.
Global impact
“The US economy is one shock away from a recession,” US investment bank Lehman Brothers commented late yesterday, January 22.
Other experts share the same view, especially after the world’s stock markets plummeted yesterday.
In Europe, the DAX index dropped by 194.41 points (2.86%), the FTSE 100 dropped by 27.3 points (0.49%), and the CAC 40 fell by 48.67 points (1.03%).
In Asia, the Hang Seng Index fell 2,061.23 points (8.65%), Strait Times down by 72.85 points (2.5%) and Nikkei 225 dropped by 752.89 points (5.65%).
The main US indexes also witnessed sharp falls yesterday with the lowest decrease at 3.5%.
Lehman Brothers thinks that 40% of the US economy will fall into recession but the situation can be improved if the US FED takes strong preventative actions.
In the latest news, the FED decided to cut short-term deposit interest rates by 0.75% from 4.25% to 3.5%, the sharpest since September 11, 2001.
Vietnam may avoid drastic impacts
Experts say Vietnam may suffer from a global economic recession as global integration depends.
Vietnam’s stock market witnessed another lackluster day yesterday, as prices of all shares continued to fall, though listed companies announced satisfactory business results. Analysts say investors are fleeing the market because they fear a global recession may adversely impact Vietnam.
The VN Index fell to 807.74 points, the lowest since January 5, 2007.
However, the World Bank thinks the US’ problems will not influence Vietnam too much.
A recent report by the WB forecast that the global growth rate will be 3.3% in 2008, a bit lower than 2007’s 3.6%.
The report also said that if the US economy falls into a serious recession, this may further dampen growth in developing countries, including Vietnam.
The Asia Pacific region is thought to achieve a GDP growth rate of 9.8% in 2008, and 9.6% in 2009, while Vietnam is expected to see growth rates of 8.2% and 8.3% for 2008 and 2009, respectively.
International press agencies have also quoted economists who say that as Asian economies do not largely depend on the US, they will not suffer much from a US recession.
Japan, which is a main exporter to North America, will suffer most from the recession, while China will also see adverse effects as it is striving to increase exports to the US. (VNN)
Global impact
“The US economy is one shock away from a recession,” US investment bank Lehman Brothers commented late yesterday, January 22.
Other experts share the same view, especially after the world’s stock markets plummeted yesterday.
In Europe, the DAX index dropped by 194.41 points (2.86%), the FTSE 100 dropped by 27.3 points (0.49%), and the CAC 40 fell by 48.67 points (1.03%).
In Asia, the Hang Seng Index fell 2,061.23 points (8.65%), Strait Times down by 72.85 points (2.5%) and Nikkei 225 dropped by 752.89 points (5.65%).
The main US indexes also witnessed sharp falls yesterday with the lowest decrease at 3.5%.
Lehman Brothers thinks that 40% of the US economy will fall into recession but the situation can be improved if the US FED takes strong preventative actions.
In the latest news, the FED decided to cut short-term deposit interest rates by 0.75% from 4.25% to 3.5%, the sharpest since September 11, 2001.
Vietnam may avoid drastic impacts
Experts say Vietnam may suffer from a global economic recession as global integration depends.
Vietnam’s stock market witnessed another lackluster day yesterday, as prices of all shares continued to fall, though listed companies announced satisfactory business results. Analysts say investors are fleeing the market because they fear a global recession may adversely impact Vietnam.
The VN Index fell to 807.74 points, the lowest since January 5, 2007.
However, the World Bank thinks the US’ problems will not influence Vietnam too much.
A recent report by the WB forecast that the global growth rate will be 3.3% in 2008, a bit lower than 2007’s 3.6%.
The report also said that if the US economy falls into a serious recession, this may further dampen growth in developing countries, including Vietnam.
The Asia Pacific region is thought to achieve a GDP growth rate of 9.8% in 2008, and 9.6% in 2009, while Vietnam is expected to see growth rates of 8.2% and 8.3% for 2008 and 2009, respectively.
International press agencies have also quoted economists who say that as Asian economies do not largely depend on the US, they will not suffer much from a US recession.
Japan, which is a main exporter to North America, will suffer most from the recession, while China will also see adverse effects as it is striving to increase exports to the US. (VNN)
Saigon Petro buys 77KT distillates at higher prices
Vietnam's Saigon Petro Co Ltd has bought the full tender volume of 77,000 tonnes of distillates for February and March, and will seek more gasoline to meet strong demand, a market source said on Wednesday.
The latest tender purchases, which were awarded to trading houses including Chinaoil and Unipec, nearly doubled from 40,000 tonnes bought in a past tender for February, he said.
The state fuel importer had to fork out higher prices for gasoline cargoes due to thin Asian supply, said the source familiar with the tender. "There are few offers because there is not much (gasoline) supply around. Consumption in Vietnam is rising rapidly and Saigon will try to buy more cargoes for March delivery in the spot market," he added.
The table below shows the tender results but the full list of the winners was not immediately available. Volumes are in thousands of tonnes. (Financial Times)
The latest tender purchases, which were awarded to trading houses including Chinaoil and Unipec, nearly doubled from 40,000 tonnes bought in a past tender for February, he said.
The state fuel importer had to fork out higher prices for gasoline cargoes due to thin Asian supply, said the source familiar with the tender. "There are few offers because there is not much (gasoline) supply around. Consumption in Vietnam is rising rapidly and Saigon will try to buy more cargoes for March delivery in the spot market," he added.
The table below shows the tender results but the full list of the winners was not immediately available. Volumes are in thousands of tonnes. (Financial Times)
GTel to join mobile information market
The Ministry of Information and Communications is finalizing formalities to grant an early license to GTel Telecom Corporation, under the Ministry of Public Security, to offer mobile services.
The mobile information market is awaiting a newcomer, GTel. Existing operators are concerned because behind GTel is Vimpelcom, the second biggest mobile service provider in Russia.
New kid on the block
It is rumored that GTel does not have abundant financial resources, so it will have to rely on its Russian partner, Vimpelcom, said to have invested $1 billion into the GTel Mobile network, the biggest investment ever in a domestic mobile network.
Experts said that to quickly operate its network, GTel will learn from HT Mobile’s experience. GTel will organize tenders to choose equipment providers and installers like HT Mobile hired Nortel. Analysts say GTel will have to choose this method because it needs to quickly implement its network but doesn’t have sufficient human resources.
As a newcomer, GTel will face labor shortage challenges because it is in the public security sector, which has no relation with telecom. Experts say this operator will lure employees of other mobile networks with incentives and titles.
Frequency change
The Ministry of Public Security on November 2, 2007 signed a decision to establish the Global Telecom Corporation or GTel. Previously, the Ministry and Vimpelcom signed a principle agreement during Prime Minister Nguyen Tan Dung’s official visit to Russia in September 2007. Under the agreement, a GSM-based mobile telecom joint venture named GTel Mobile will be established in Vietnam. Vimpelcom also announced it would invest $1 billion into Vietnam in the next few years to develop a GSM system. The Russian partner said also participating in this joint venture is the US’ Millennium Global Solutions Group.
It is said that the Ministry of Information and Communications will allow GTel to provide mobile services at 1,800 MHz. However, experts say that if GTel uses this frequency, it will have to install many more base transceiver stations than those who are licensed to use 800-900 MHz.
An official from the Ministry of Information and Communications on January 17 confirmed that GTel asked permission to supply GSM-based mobile services, and the Ministry is working on the necessary formalities. He also said GTel will be licensed to use the 1,800 MHz frequency.
“According to Vietnam’s WTO commitments, we don’t restrict the number of mobile service providers in Vietnam, but if our frequency resources run out, we can’t license new networks. The effective frequency (800-900 MHz) is out and we only have 1,800 MHz frequency left,” the official said. (Buu Dien VN Newspaper)
The mobile information market is awaiting a newcomer, GTel. Existing operators are concerned because behind GTel is Vimpelcom, the second biggest mobile service provider in Russia.
New kid on the block
It is rumored that GTel does not have abundant financial resources, so it will have to rely on its Russian partner, Vimpelcom, said to have invested $1 billion into the GTel Mobile network, the biggest investment ever in a domestic mobile network.
Experts said that to quickly operate its network, GTel will learn from HT Mobile’s experience. GTel will organize tenders to choose equipment providers and installers like HT Mobile hired Nortel. Analysts say GTel will have to choose this method because it needs to quickly implement its network but doesn’t have sufficient human resources.
As a newcomer, GTel will face labor shortage challenges because it is in the public security sector, which has no relation with telecom. Experts say this operator will lure employees of other mobile networks with incentives and titles.
Frequency change
The Ministry of Public Security on November 2, 2007 signed a decision to establish the Global Telecom Corporation or GTel. Previously, the Ministry and Vimpelcom signed a principle agreement during Prime Minister Nguyen Tan Dung’s official visit to Russia in September 2007. Under the agreement, a GSM-based mobile telecom joint venture named GTel Mobile will be established in Vietnam. Vimpelcom also announced it would invest $1 billion into Vietnam in the next few years to develop a GSM system. The Russian partner said also participating in this joint venture is the US’ Millennium Global Solutions Group.
It is said that the Ministry of Information and Communications will allow GTel to provide mobile services at 1,800 MHz. However, experts say that if GTel uses this frequency, it will have to install many more base transceiver stations than those who are licensed to use 800-900 MHz.
An official from the Ministry of Information and Communications on January 17 confirmed that GTel asked permission to supply GSM-based mobile services, and the Ministry is working on the necessary formalities. He also said GTel will be licensed to use the 1,800 MHz frequency.
“According to Vietnam’s WTO commitments, we don’t restrict the number of mobile service providers in Vietnam, but if our frequency resources run out, we can’t license new networks. The effective frequency (800-900 MHz) is out and we only have 1,800 MHz frequency left,” the official said. (Buu Dien VN Newspaper)
Movenpick opens in Vietnam
Swiss hotel chain Mövenpick is to open two hotels in the Vietnamese cities of Ho Chi Minh and Hanoi. The company's first move into Vietnam came about after the takeover of two existing five-star hotels, which will reopen under the Movenpick brand by the end of 2008, following renovations.
"We are proud of the fact… we will very soon be gaining a foothold in Vietnam too, after Thailand and Singapore," said Jean Gabriel Pérès, president of Mövenpick Hotels & Resorts.
"Once the renovations are completed, we will have two exceptional city hotels here, tailored precisely to the needs of our guests."
The 251-room Mövenpick Hotel Saigon will be in the Phu Nhuan district of Ho Chi Minh and will have three restaurants and two bars, besides an outdoor pool, fitness centre, sauna and spa.
The Mövenpick Hotel Hanoi - formerly the Guoman Hotel Hanoi – is in the business centre of the city with 150 rooms, a restaurant and a bar.
It will also offer a fitness centre with sauna and massage facilities.
Mövenpick Hotels & Resorts currently has 80 hotels in 25 countries in Europe, the Middle East, Africa and Asia.
"We are proud of the fact… we will very soon be gaining a foothold in Vietnam too, after Thailand and Singapore," said Jean Gabriel Pérès, president of Mövenpick Hotels & Resorts.
"Once the renovations are completed, we will have two exceptional city hotels here, tailored precisely to the needs of our guests."
The 251-room Mövenpick Hotel Saigon will be in the Phu Nhuan district of Ho Chi Minh and will have three restaurants and two bars, besides an outdoor pool, fitness centre, sauna and spa.
The Mövenpick Hotel Hanoi - formerly the Guoman Hotel Hanoi – is in the business centre of the city with 150 rooms, a restaurant and a bar.
It will also offer a fitness centre with sauna and massage facilities.
Mövenpick Hotels & Resorts currently has 80 hotels in 25 countries in Europe, the Middle East, Africa and Asia.
Tien Giang’s star apples find way to Russia
The 2007-08 harvest saw Russia have so far imported one tonne of star apples of the Lo Ren trademark grown in Vinh Kim village, Chau Thanh district in the Mekong Delta province of Tien Giang .
Deputy Head of the Lo Ren Star Apple Cooperative Le Van Son said he has received orders for the fruit from many other countries. Singapore , for example, has ordered a container of 14 tonnes.
“But my cooperative is unable to meet the demand,” he said.
Son’s business will ship another batch weighing 92 kg of star apple to Russia on January 26.
The star apple of the Lo Ren trademark is growing on some 2,230 ha of land in 13 villages of Chau thanh district. The fruit yields between 13 and 15 tonnes per ha, thus producing some 22,000 tonnes a year. (VNA)
Deputy Head of the Lo Ren Star Apple Cooperative Le Van Son said he has received orders for the fruit from many other countries. Singapore , for example, has ordered a container of 14 tonnes.
“But my cooperative is unable to meet the demand,” he said.
Son’s business will ship another batch weighing 92 kg of star apple to Russia on January 26.
The star apple of the Lo Ren trademark is growing on some 2,230 ha of land in 13 villages of Chau thanh district. The fruit yields between 13 and 15 tonnes per ha, thus producing some 22,000 tonnes a year. (VNA)
Over US $1billion to be invested in Tuy Hoa airport
A master plan on Tuy Hoa airport in Phu Yen province for 2015 and vision to 2025 were released by the Central Airport Group on January 21.
Under the plan, Tuy Hoa airport will be able to receive planes like A320/32, B737/300 and so on, and 100,000 passengers a year in the first phase and 300,000 passengers a year in the following years.
According to estimates, the investment in the construction will be some VND 1,670 billion. Many projects in the airport will be upgraded and the airport will be extended to nearly 700 ha, sources from the airport management announced.
At present, Flight Service company is exploiting the Ho Chi Minh City-Tuy Hoa route with 8 flights a week from Tuy Hoa airport. (Tuoi Tre)
Under the plan, Tuy Hoa airport will be able to receive planes like A320/32, B737/300 and so on, and 100,000 passengers a year in the first phase and 300,000 passengers a year in the following years.
According to estimates, the investment in the construction will be some VND 1,670 billion. Many projects in the airport will be upgraded and the airport will be extended to nearly 700 ha, sources from the airport management announced.
At present, Flight Service company is exploiting the Ho Chi Minh City-Tuy Hoa route with 8 flights a week from Tuy Hoa airport. (Tuoi Tre)
Biggest golf course-resort complex being constructed in Lam Dong
The construction of the biggest golf course and resort complex has been recently started by Korea-Vietnam Ltd.Co in Da Lat, Lam Dong.
The 36-hole golf course and the resort on an area of 440ha make the project the biggest in Lam Dong province.
With the capital of US$ 17 million, the project will be completed after three years.
According to Mr Huynh Duc Hoa, Chairman of the Lam Dong People’s Committee, the project is not only expected to contribute to the development of the province’s tourism but also local socio-economic growth.
Recently, the company has also agreed on an additional VND 500 million for Hiep An commune to construct a school for primary school students and given two houses of gratitude to ethnic households of K’Ren tribe.
The 36-hole golf course and the resort on an area of 440ha make the project the biggest in Lam Dong province.
With the capital of US$ 17 million, the project will be completed after three years.
According to Mr Huynh Duc Hoa, Chairman of the Lam Dong People’s Committee, the project is not only expected to contribute to the development of the province’s tourism but also local socio-economic growth.
Recently, the company has also agreed on an additional VND 500 million for Hiep An commune to construct a school for primary school students and given two houses of gratitude to ethnic households of K’Ren tribe.
Sino-ASEAN free-trade area to be set up by 2010
Sino-ASEAN two-way trade turnover reached US $202.6 billion in 2007, up by 26 per cent over 2006, according to a release from a top-level Sino-ASEAN conference on trade and investment recently held in Beijing.
The figure exceeds the target of US $200 billion set for 2010.
According to the Chinese Deputy Secretary General of the Sino-ASEAN Trade Council, the success shows the large potential of two-way trade between China and ASEAN and the desire for cooperation of businesses of the two sides.
The two parties agreed on a series of policies and measures to boost cooperation in the forthcoming years.
Officials from China and ASEAN also have agreed to establish a Sino-ASEAN free-trade area by 2010. (TBKT)
The figure exceeds the target of US $200 billion set for 2010.
According to the Chinese Deputy Secretary General of the Sino-ASEAN Trade Council, the success shows the large potential of two-way trade between China and ASEAN and the desire for cooperation of businesses of the two sides.
The two parties agreed on a series of policies and measures to boost cooperation in the forthcoming years.
Officials from China and ASEAN also have agreed to establish a Sino-ASEAN free-trade area by 2010. (TBKT)
Domestic Banks Safe Amid Foreign Influx For The Time Being
Considering that six foreign banks are applying for establishment as 100%-foreign-owned banks in Viet Nam in addition to three foreign branches licensed this month and 40 others in operation, will foreign banks one day pose a threat to Vietnamese ones?
Foreign banks are pioneers in applying state-of-the-art banking technology and new services in Viet Nam and are doing their utmost to expand their networks.
Many foreign banks are eager to establish subsidiaries in Viet Nam. For instance, though the Singapore-based Overseas Chinese Banking Corporation (OCBC) is holding 10 percent of stakes in VPBank, it has recently applied to establish a subsidiary bank in the country to target small to medium enterprises and individuals.
In addition, the Hong Kong and Shanghai Banking Cooperation (HSBC) has decided to set up a subsidiary bank in Viet Nam to provide clients with more banking services and products, said CEO Thomas Tobin.
Just this month, the Republic of Korea’s Industrial Bank, Australia’s Commonwealth Bank and Taiwan’s Taipei Fubon were licensed to open branches in Ho Chi Minh City and Ha Noi for a duration of 99 years.
Still no fear in sight
Despite such influx, there are only a handful of banks applying to open fully-foreign-owned banks, therefore fierce competition is yet to occur between foreign and local banks, analysts said.
In addition, the local financial market is growing well so domestic banks have many opportunities to develop new financial services to outdo their overseas rivals.
Meanwhile, foreign banks will have to face certain challenges when operating in Viet Nam, warned Doctor Le Xuan Nghia, head of the State Bank of Viet Nam’s Banking Development Strategy Department.
Because Vietnamese enterprises are somewhat alien to foreign professional banking management, they will have difficulty seeking loans or just shy away from such foreign banks, he explained.
Then, despite being a potential wholesale market, most high incomers are living in cities and urban areas where domestic banks have already taken roots, hence little room for foreign newcomers.
Added to such obstacles are the country’s shortage of human resources, and local banks’ readiness to pay high salaries to attract qualified employees.
However, Nghia admitted foreign banks will have many opportunities to develop their services in wholesale markets, investment and commercial funds this year.
He said those services are in great demand in the country but local banking institutions are yet to provide them due to technological constraints, lack of human resources, and risk management skills. (Saigon GP)
Foreign banks are pioneers in applying state-of-the-art banking technology and new services in Viet Nam and are doing their utmost to expand their networks.
Many foreign banks are eager to establish subsidiaries in Viet Nam. For instance, though the Singapore-based Overseas Chinese Banking Corporation (OCBC) is holding 10 percent of stakes in VPBank, it has recently applied to establish a subsidiary bank in the country to target small to medium enterprises and individuals.
In addition, the Hong Kong and Shanghai Banking Cooperation (HSBC) has decided to set up a subsidiary bank in Viet Nam to provide clients with more banking services and products, said CEO Thomas Tobin.
Just this month, the Republic of Korea’s Industrial Bank, Australia’s Commonwealth Bank and Taiwan’s Taipei Fubon were licensed to open branches in Ho Chi Minh City and Ha Noi for a duration of 99 years.
Still no fear in sight
Despite such influx, there are only a handful of banks applying to open fully-foreign-owned banks, therefore fierce competition is yet to occur between foreign and local banks, analysts said.
In addition, the local financial market is growing well so domestic banks have many opportunities to develop new financial services to outdo their overseas rivals.
Meanwhile, foreign banks will have to face certain challenges when operating in Viet Nam, warned Doctor Le Xuan Nghia, head of the State Bank of Viet Nam’s Banking Development Strategy Department.
Because Vietnamese enterprises are somewhat alien to foreign professional banking management, they will have difficulty seeking loans or just shy away from such foreign banks, he explained.
Then, despite being a potential wholesale market, most high incomers are living in cities and urban areas where domestic banks have already taken roots, hence little room for foreign newcomers.
Added to such obstacles are the country’s shortage of human resources, and local banks’ readiness to pay high salaries to attract qualified employees.
However, Nghia admitted foreign banks will have many opportunities to develop their services in wholesale markets, investment and commercial funds this year.
He said those services are in great demand in the country but local banking institutions are yet to provide them due to technological constraints, lack of human resources, and risk management skills. (Saigon GP)
Singapore investment house and Israeli company to invest in Vietnam
One of Asia's fastest growing investment houses has signed an agreement with Israel's Alony Hetz to set up a fund investing in Vietnamese real estate, the partners said on Tuesday. The Singapore-based Pacific Star Group and Alony Hetz expect to raise 200 million US dollars from institutional investors by July.
Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.
Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.
"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.
"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said. (DPA)
Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.
Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.
"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.
"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said. (DPA)
Ericsson lands major VNPT equipment contract
The nation’s leading phone company, VNPT, has selected Ericsson to supply telecommunications equipment that can accommodate 200,000 new fixed-line telephone subscribers in the central region.
The deal is part of the second phase of a VNPT project to expand services in the central region. In the first phase, begun in August 2006, Ericsson was awarded the equipment contract to add 600,000 fixed-line telephone subscribers.
Ericsson’s presence in Viet Nam dates back over 15 years when the Swedish-based firm started its first telephone network project in Viet Nam. Financial information about the latest deals has not been released.
In 2005, Ericsson previously won a bid on the Central Viet Nam Rural Telecom Network project, a communications development project financed by a loan from the Japan Bank for International Cooperation (JBIC) to expand phone service in remote, low-telephone penetration areas in 10 provinces in the central region
Meanwhile, the distinctly Swedish brand also recently announced the establishment of its wholly-owned company in Viet Nam, named Ericsson Viet Nam Ltd Co.
According to Eddie Ahnam, general director of Ericsson Viet Nam Ltd Co, the company, which has a total investment capital of US$1.4 million, will increase its investment in line with the market’s growing demand.
Ericsson Viet Nam will provide the local market with equipment and network system solutions, services in network management and control, multimedia and systems integration and mobile phones. (VNS)
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The deal is part of the second phase of a VNPT project to expand services in the central region. In the first phase, begun in August 2006, Ericsson was awarded the equipment contract to add 600,000 fixed-line telephone subscribers.
Ericsson’s presence in Viet Nam dates back over 15 years when the Swedish-based firm started its first telephone network project in Viet Nam. Financial information about the latest deals has not been released.
In 2005, Ericsson previously won a bid on the Central Viet Nam Rural Telecom Network project, a communications development project financed by a loan from the Japan Bank for International Cooperation (JBIC) to expand phone service in remote, low-telephone penetration areas in 10 provinces in the central region
Meanwhile, the distinctly Swedish brand also recently announced the establishment of its wholly-owned company in Viet Nam, named Ericsson Viet Nam Ltd Co.
According to Eddie Ahnam, general director of Ericsson Viet Nam Ltd Co, the company, which has a total investment capital of US$1.4 million, will increase its investment in line with the market’s growing demand.
Ericsson Viet Nam will provide the local market with equipment and network system solutions, services in network management and control, multimedia and systems integration and mobile phones. (VNS)
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Ministry drafts decree to encourage overseas Vietnamese to buy homes
The Construction Ministry has drafted a new decree designed to make it easier for Viet kieu, overseas Vietnamese, to buy residences in Viet Nam.
The draft decree would supersede Decree No 90/2006/ND-CP of September 6, 2006, that expanded the number of Viet kieu eligible to buy houses in Viet Nam, the ministry’s House Management Department director Nguyen Manh Ha told VN News yesterday.
The Viet Nam News understands that feedback to the draft decree has been gathered from other ministries and it is now with the Justice Ministry.
The decree will go to Prime Minister Nguyen Tan Dung for expected approval by the end of April.
The draft decree divides eligible Viet kieu into two categories.
The first is for Vietnamese citizens living abroad, including Vietnamese nationals and foreign-passport holders who retain their Vietnamese nationality.
They will be allowed to own an unlimited number of houses in Viet Nam in the same way as Vietnamese living permanently in Viet Nam.
Vietnamese living abroad, and who have not retained their nationality will be included in this first category if eligible as listed by the Housing Law, Article 126.
The second is for other Vietnamese living abroad and who have been in Viet Nam for at least six months or hold visa-exemption certificates will be allowed to own a single residence.
Prevailing Decree 90 stipulates that only Viet kieu who are long-term investors; scientists or cultural experts; those who have made significant contributions to the country; or those who have been allowed to live in Viet Nam for a long time can own an unlimited number of houses.
It also allows Viet kieu who have been staying in Viet Nam for at least six months in one visit to own a single residence.
Construction Ministry officials are known to believe that the decree fails to identify who is an overseas Vietnamese and lacks detailed supplementary documents to show how long a Viet kieu has been a resident and of which groups he, or she, is a member.
"I have read the regulations. They are quite ambiguous. I don’t know whether I am eligible and what to do to buy a house," said German passport-holder Ho Hiep.
"I think the Government’s policy is very good but its popularisation is more important, said Canadian Viet kieu Nguyen Hoai Bac who has been an investor in Viet Nam since 1992.
"But the policy should be turned into law.
"Decrees are less than a law and I’m afraid that Viet kieu may still face difficulties when working with local authorities."
But demand by Viet kieu to buy residences is difficult to predict.
Hiep said it was not really necessary for him to buy a house because as the chief representative of a German construction company, his rent of more than US$3,000 a month was paid for him.
"But I think I must buy a good apartment in the future if the company changes its policy to transfer a fixed monthly housing allowance to my bank account instead of directly paying the fees," he said.
Nguyen Hoai Bac said he lived in the house of his wife’s family.
The Viet Nam News understands that the draft decree clearly stipulates the documents required to prove a person an overseas Vietnamese.
As such, it is held to be both more practical and more detailed than the ruling decree.
Only about 130 overseas Vietnamese had bought houses since Decree 90 came into effect more than one year ago, said the House Management Department director Nguyen Manh Ha.
The number was too few when compared with a total of about 3.2 million overseas Vietnamese, he said.
Most of the 130 live in southern Viet Nam, especially HCM City.
The proposed changes to the decree would help realise the Government’s policy of considering overseas Vietnamese as an integral part of the Vietnamese community, Prime Minister Nguyen Tan Dung said in his summary of a meeting between representatives of the Construction, Foreign, Public Security and Justice Ministries to discuss changes to the decree last September.
The law asit stands
The legal documents that now govern overseas Vietnamese buying residences in Viet Nam include:
– Housing Law, adopted on November 29, 2005, Article 126 to 130.
– Decree 90/2006/ND-CP, of September 6, 2006, Article 64 to 68. (VNS)
The draft decree would supersede Decree No 90/2006/ND-CP of September 6, 2006, that expanded the number of Viet kieu eligible to buy houses in Viet Nam, the ministry’s House Management Department director Nguyen Manh Ha told VN News yesterday.
The Viet Nam News understands that feedback to the draft decree has been gathered from other ministries and it is now with the Justice Ministry.
The decree will go to Prime Minister Nguyen Tan Dung for expected approval by the end of April.
The draft decree divides eligible Viet kieu into two categories.
The first is for Vietnamese citizens living abroad, including Vietnamese nationals and foreign-passport holders who retain their Vietnamese nationality.
They will be allowed to own an unlimited number of houses in Viet Nam in the same way as Vietnamese living permanently in Viet Nam.
Vietnamese living abroad, and who have not retained their nationality will be included in this first category if eligible as listed by the Housing Law, Article 126.
The second is for other Vietnamese living abroad and who have been in Viet Nam for at least six months or hold visa-exemption certificates will be allowed to own a single residence.
Prevailing Decree 90 stipulates that only Viet kieu who are long-term investors; scientists or cultural experts; those who have made significant contributions to the country; or those who have been allowed to live in Viet Nam for a long time can own an unlimited number of houses.
It also allows Viet kieu who have been staying in Viet Nam for at least six months in one visit to own a single residence.
Construction Ministry officials are known to believe that the decree fails to identify who is an overseas Vietnamese and lacks detailed supplementary documents to show how long a Viet kieu has been a resident and of which groups he, or she, is a member.
"I have read the regulations. They are quite ambiguous. I don’t know whether I am eligible and what to do to buy a house," said German passport-holder Ho Hiep.
"I think the Government’s policy is very good but its popularisation is more important, said Canadian Viet kieu Nguyen Hoai Bac who has been an investor in Viet Nam since 1992.
"But the policy should be turned into law.
"Decrees are less than a law and I’m afraid that Viet kieu may still face difficulties when working with local authorities."
But demand by Viet kieu to buy residences is difficult to predict.
Hiep said it was not really necessary for him to buy a house because as the chief representative of a German construction company, his rent of more than US$3,000 a month was paid for him.
"But I think I must buy a good apartment in the future if the company changes its policy to transfer a fixed monthly housing allowance to my bank account instead of directly paying the fees," he said.
Nguyen Hoai Bac said he lived in the house of his wife’s family.
The Viet Nam News understands that the draft decree clearly stipulates the documents required to prove a person an overseas Vietnamese.
As such, it is held to be both more practical and more detailed than the ruling decree.
Only about 130 overseas Vietnamese had bought houses since Decree 90 came into effect more than one year ago, said the House Management Department director Nguyen Manh Ha.
The number was too few when compared with a total of about 3.2 million overseas Vietnamese, he said.
Most of the 130 live in southern Viet Nam, especially HCM City.
The proposed changes to the decree would help realise the Government’s policy of considering overseas Vietnamese as an integral part of the Vietnamese community, Prime Minister Nguyen Tan Dung said in his summary of a meeting between representatives of the Construction, Foreign, Public Security and Justice Ministries to discuss changes to the decree last September.
The law asit stands
The legal documents that now govern overseas Vietnamese buying residences in Viet Nam include:
– Housing Law, adopted on November 29, 2005, Article 126 to 130.
– Decree 90/2006/ND-CP, of September 6, 2006, Article 64 to 68. (VNS)
Malaysia's WinSun Eyes Viet Market
Winsun Technologies Bhd, which provides intelligent industrial control management systems with all its operations based in China, plans to expand its market to Vietnam next year.
"We are eyeing the market in Vietnam to set up a representative office there in 2009. However, things are in the preliminary stage now," managing director/chief executive officer, Choong Siew Meng, told a media briefing after the listing of the company's shares on Mesdaq Market here Tuesday.
The shares opened at 34 sen, up 5.7 sen from its theoretical ex-bonus price of 28.3 sen. It closed the morning session at 36.5 sen after hitting a high of 48 sen earlier.
Under its listing exercise, WinSun made a public issue of 30 million shares, of which 25 million were for private placement, two million for directors and employees, and the rest for the public.
It also implemented a 2-for-1 bonus issue of 200 million shares after the public issue. (Bernama)
"We are eyeing the market in Vietnam to set up a representative office there in 2009. However, things are in the preliminary stage now," managing director/chief executive officer, Choong Siew Meng, told a media briefing after the listing of the company's shares on Mesdaq Market here Tuesday.
The shares opened at 34 sen, up 5.7 sen from its theoretical ex-bonus price of 28.3 sen. It closed the morning session at 36.5 sen after hitting a high of 48 sen earlier.
Under its listing exercise, WinSun made a public issue of 30 million shares, of which 25 million were for private placement, two million for directors and employees, and the rest for the public.
It also implemented a 2-for-1 bonus issue of 200 million shares after the public issue. (Bernama)
South Korea's STX Group said on Tuesday it would set up a manufacturing base in Vietnam, investing $150 million by 2015, to expand its offshore plant
South Korea's STX Group said on Tuesday it would set up a manufacturing base in Vietnam, investing $150 million by 2015, to expand its offshore plant business.
STX Group's three flagship companies, STX Corp., STX Shipbuilding Co. and STX Engine, will invest in the project, said a spokesman from the heavy industry and shipping-focused business group.
The group has won the Vietnamese government's approval to set up a unit, STX-VINA Heavy Industry, which will mostly focus on offshore plant construction. It is yet to be decided whether STX Group would build ships from the Vietnam unit, the spokesman added. (Reuters)
STX Group's three flagship companies, STX Corp., STX Shipbuilding Co. and STX Engine, will invest in the project, said a spokesman from the heavy industry and shipping-focused business group.
The group has won the Vietnamese government's approval to set up a unit, STX-VINA Heavy Industry, which will mostly focus on offshore plant construction. It is yet to be decided whether STX Group would build ships from the Vietnam unit, the spokesman added. (Reuters)
Vietnam eyes 55 bln-foreign investment in 5 years
Vietnam has targeted Foreign Direct Investment (FDI) of some 55 billion U.S. dollars, and realized FDI of 24-25 billion dollars between 2006 and 2010, according to a local investment agency on Tuesday.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
PetroVietnam earnings gush to all-time high
The Viet Nam National Oil and Gas Group (PetroVietnam) reported all-time record revenues last year, partly fuelled by higher than expected earnings from services, and planned to secure a 15% growth rate this year in a press conference on January 21 in Ha Noi.
“PetroVietnam notched up total revenues of 213.4 trillion VND (13.3 billion USD) last year, up 18.4% from a year earlier, and it was the first time that the group reached revenues surpassing the significant milestone of 200 trillion VND,” said group deputy general director Le Minh Hong.
Of the total revenue, about 8.8 billion USD came from exporting 15.7 million tones of crude oil. This was a record figure on the bank of sky-rocking oil prices on the global market.
However, export volumes remained lower than earlier expected as its output merely remained at 15.9 million tones of crude. The group had earlier estimated it would exploit up to 17.5 million tonnes, according to Hong.
Hong also stressed PetroVietnam’s tremendous growth in revenue from services, which hit roughly 50 trillion VND (3.1 billion USD) last year, double the figure of the previous year. Services include technical services, finance, and insurance, among others.
The group signed 13 oil and gas exploitation contracts, three of which were for exploitation abroad, in 2007.
It paid nearly 86 trillion VND (5.3 billion USD) into the State Budget, a year-on-year increase of 7.4%, and accounting for around 30% of total State revenues, Hong said.
To reach 15% growth in revenue this year, PetroVietnam planned to exploit and yield some 16 million tones of crude oil from exploitation in Viet Nam and abroad.
PetroVietnam general director Tran Ngoc Canh admitted that crude oil yields abroad, at just over 100,000 tonnes last year, were lower than expectations.
To secure sustainable growth and energy security, the group would not only warrantee exploiting oil and gas effectively at home but also strive to expand exploitation in oil fields abroad with 2-3 contracts anticipated to be inked this year, Canh said.
The group has managed to land oil and gas exploitation deals in Malaysia , Indonesia , Azerbaijan , Kazakistan , Iran , and Venezuela , Canh said. (VNA)
“PetroVietnam notched up total revenues of 213.4 trillion VND (13.3 billion USD) last year, up 18.4% from a year earlier, and it was the first time that the group reached revenues surpassing the significant milestone of 200 trillion VND,” said group deputy general director Le Minh Hong.
Of the total revenue, about 8.8 billion USD came from exporting 15.7 million tones of crude oil. This was a record figure on the bank of sky-rocking oil prices on the global market.
However, export volumes remained lower than earlier expected as its output merely remained at 15.9 million tones of crude. The group had earlier estimated it would exploit up to 17.5 million tonnes, according to Hong.
Hong also stressed PetroVietnam’s tremendous growth in revenue from services, which hit roughly 50 trillion VND (3.1 billion USD) last year, double the figure of the previous year. Services include technical services, finance, and insurance, among others.
The group signed 13 oil and gas exploitation contracts, three of which were for exploitation abroad, in 2007.
It paid nearly 86 trillion VND (5.3 billion USD) into the State Budget, a year-on-year increase of 7.4%, and accounting for around 30% of total State revenues, Hong said.
To reach 15% growth in revenue this year, PetroVietnam planned to exploit and yield some 16 million tones of crude oil from exploitation in Viet Nam and abroad.
PetroVietnam general director Tran Ngoc Canh admitted that crude oil yields abroad, at just over 100,000 tonnes last year, were lower than expectations.
To secure sustainable growth and energy security, the group would not only warrantee exploiting oil and gas effectively at home but also strive to expand exploitation in oil fields abroad with 2-3 contracts anticipated to be inked this year, Canh said.
The group has managed to land oil and gas exploitation deals in Malaysia , Indonesia , Azerbaijan , Kazakistan , Iran , and Venezuela , Canh said. (VNA)
Vinalines sets sail for 1 billion USD in 2008
The Viet Nam National Shipping Lines (Vinalines) is targeting 17 trillion VND (1 billion USD) in earnings this year, a year-on-year increase of 16 percent, the corporation announced last week.
Profit this year is projected at 950 billion VND (60 million USD), a 10% increase over last year.
The corporation plans to diversify and restructure to further mobilize capital for the construction of two major projects in Khanh Hoa province. Smaller projects in Hai Phong, Quang Ninh and Ba Ria-Vung Tau will also be carried out.
Vinalines spent a staggering 630 million USD on 30 new ships last year, a record for the corporation.
Despite the substantial cost involved, Vinalines will buy and build new ships so that the total dead-weight-tonne of its fleet reaches 2.6 million by year-end.
While poor weather and a 30-50% increase in the final price of ships were considered Vinalines biggest hurdles in 2007, other factors are predicted to help the corporation realize this year’s goals.
According to a recent Vinalines report, strong economic growth in Southeast Asia coupled with high demand from China and India present favourable conditions for shipping firms.
Last year, Vinalines earned 14.64 trillion VND while posting a profit of 861 billion VND, respective gains of 26 and 51% over 2006. Such impressive results saw Vinalines contribute 777 billion VND to the State budget last year. (VNA)
Profit this year is projected at 950 billion VND (60 million USD), a 10% increase over last year.
The corporation plans to diversify and restructure to further mobilize capital for the construction of two major projects in Khanh Hoa province. Smaller projects in Hai Phong, Quang Ninh and Ba Ria-Vung Tau will also be carried out.
Vinalines spent a staggering 630 million USD on 30 new ships last year, a record for the corporation.
Despite the substantial cost involved, Vinalines will buy and build new ships so that the total dead-weight-tonne of its fleet reaches 2.6 million by year-end.
While poor weather and a 30-50% increase in the final price of ships were considered Vinalines biggest hurdles in 2007, other factors are predicted to help the corporation realize this year’s goals.
According to a recent Vinalines report, strong economic growth in Southeast Asia coupled with high demand from China and India present favourable conditions for shipping firms.
Last year, Vinalines earned 14.64 trillion VND while posting a profit of 861 billion VND, respective gains of 26 and 51% over 2006. Such impressive results saw Vinalines contribute 777 billion VND to the State budget last year. (VNA)
PetroVietnam to buy two oil wells overseas
The National Oil and Gas Corporation (PetroVietnam) has taken bidding procedures to buy an oil well in Azerbaijan and if winning the contract, it will start tapping oil this year, PetroVietnam General Director Tran Ngoc Canh has announced.
At a press briefing on Jan. 21, Canh added that his corporation is negotiating with Kazakh, Venezuelan and Irani partners on purchase of the second oil well overseas with the aim of achieving an output of 16 million tonnes of crude oil this year.
Exploration is one of PetroVietnam’s top priorities in 2008 with its special focus being paid to seeking new investment opportunities in overseas oil and gas projects, he said.
PetroVietnam has so far signed 13 overseas exploration and exploitation projects and is targeting to set up a joint venture company in Iran , he added.
PetroVietnam pumped almost 22.7 million tonnes of oil in 2007, 100,000 tonnes of which were tapped in foreign countries. It also exported more than 15.7 million tonnes of oil for 8.8 billion USD.
At a press briefing on Jan. 21, Canh added that his corporation is negotiating with Kazakh, Venezuelan and Irani partners on purchase of the second oil well overseas with the aim of achieving an output of 16 million tonnes of crude oil this year.
Exploration is one of PetroVietnam’s top priorities in 2008 with its special focus being paid to seeking new investment opportunities in overseas oil and gas projects, he said.
PetroVietnam has so far signed 13 overseas exploration and exploitation projects and is targeting to set up a joint venture company in Iran , he added.
PetroVietnam pumped almost 22.7 million tonnes of oil in 2007, 100,000 tonnes of which were tapped in foreign countries. It also exported more than 15.7 million tonnes of oil for 8.8 billion USD.
Viet Tien introduces high-fashion men’s line
Viet Tien Garment Export-Import Corporation (VTEC), the largest garment producer in Vietnam, has introduced two new luxury male fashion lines under Italian and American labels in HCMC.
New products under the Italian label San Sciaro, which are aimed at high-powered businessmen, include shirts, khaki trousers, T-shirts and suits. Products under the American label Manhattan include shirts, western trousers and suits. The Manhattan trademark is a part of Perry Ellis International and Perry Ellis International Europe.
According to VTEC, the San Sciaro label represents nobility, experience, power and prestige and will bring new, fashionable styles to Vietnamese businessmen.
Viet Tien expanded their franchise ownership in 2007 to include the Manhattan label, which is well known for high-quality office apparel.
The company will develop a full line of clothing under the Manhattan brand. Viet Tien will initially concentrate on designing dress shirts, which will be owned by Perry Ellis International and Perry Ellis International Europe. Perry Ellis is a leading designer, distributor and licensor of high-quality men’s and women’s apparel, accessories, and fragrances.
The agreement between the two fashion houses also covers knit and woven sport shirts, dress and casual pants, shorts, sport coats, suits, suit separates, sweaters, outerwear and accessories like neckties, hosiery, underwear and sleepwear. The line will be distributed by Viet Tien’s extensive network throughout Vietnam.
Viet Tien owns 12 enterprises and has stakes in 17 companies under the Vietnam Textile and Garment Group.
General director Nguyen Dinh Truong reported that last year VTEC earned VND2.7 billion in revenue, with US$263 million from exports. The corporation currently employs 21,600 people. (Saigon Times)
New products under the Italian label San Sciaro, which are aimed at high-powered businessmen, include shirts, khaki trousers, T-shirts and suits. Products under the American label Manhattan include shirts, western trousers and suits. The Manhattan trademark is a part of Perry Ellis International and Perry Ellis International Europe.
According to VTEC, the San Sciaro label represents nobility, experience, power and prestige and will bring new, fashionable styles to Vietnamese businessmen.
Viet Tien expanded their franchise ownership in 2007 to include the Manhattan label, which is well known for high-quality office apparel.
The company will develop a full line of clothing under the Manhattan brand. Viet Tien will initially concentrate on designing dress shirts, which will be owned by Perry Ellis International and Perry Ellis International Europe. Perry Ellis is a leading designer, distributor and licensor of high-quality men’s and women’s apparel, accessories, and fragrances.
The agreement between the two fashion houses also covers knit and woven sport shirts, dress and casual pants, shorts, sport coats, suits, suit separates, sweaters, outerwear and accessories like neckties, hosiery, underwear and sleepwear. The line will be distributed by Viet Tien’s extensive network throughout Vietnam.
Viet Tien owns 12 enterprises and has stakes in 17 companies under the Vietnam Textile and Garment Group.
General director Nguyen Dinh Truong reported that last year VTEC earned VND2.7 billion in revenue, with US$263 million from exports. The corporation currently employs 21,600 people. (Saigon Times)
Royal Caribbean new cruise market entrant
Royal Caribbean International is turning its spotlight on Vietnamese cruise vacationers and this country, which the company's director of business development in Asia Pacific described as a market of importance and great potential.
"Vietnam is definitely an important link in our Asian development," Kelvin Tan told the Daily on Rhapsody of the Seas yesterday when the giant vessel docked at Phu My Port in Ba Ria-Vung Tau Province.
Tan said Vietnam had emerged as a popular destination on the world's tourism map, especially for European and North American guests. "The country has many beautiful and historical cities along the coast."
He clarified guests aboard a Royal Caribbean ship would be able to visit Vietnam's economic hub of HCMC, the World Heritage-listed sites of Hue and Hoi An in the central region, as well as Hanoi and the World Heritage site of Halong Bay, both in northern Vietnam.
Tan stressed Royal Caribbean was targeting guests in Vietnam and elsewhere in Asia for the company's short cruises with about three to five nights. "I think these short cruises will be very popular with Vietnamese customers."
Tan said there were a few ways for Vietnamese passengers to board a Royal Caribbean ship in Asia. "This season, we are operating in Singapore and Hong Kong so guests should fly to these destinations to board our ship for cruises. So it is definitely an air-sea package."
Tan explained Vietnamese passengers did not have to apply for a visa for the cruises covering Singapore, Malaysia and Thailand. However, they have to get visas for the cruise from Hong Kong to Japan.
Vietnamese passengers will have to pay US$300 on average for a package with three nights of staying on a Royal Caribbean ship, and the cost does not include airfare, he said.
"The cost is very affordable as it covers all the fees for accommodation, meals, entertainment shows and other activities and services when they are aboard our ship," Tan said. He added a cruise offered passengers an opportunity to relax and visit many destinations in one time.
Actually, Royal Caribbean ships have docked in Vietnam several times, including in 2000 and 2001, but this time was quite different.
"The big difference is that we come here now to cater to all Asian passengers, including Vietnamese. In the past, we mainly catered to Europeans and North Americans," Tan said.
He furthered Royal Caribbean started its plan for the itinerary in Asia, and chose Vietnam when looking for Asian ports for its ships to dock.
Over the past years, Royal Caribbean has already serviced Vietnamese guests on its short cruises from Singapore or on its Mediterranean cruise last year.
"We have seen interest of travel agents and more people in our Royal Caribbean ships. We feel that now is the right time to come to this market as the demand for outbound tours is growing very fast. I think people start to accept the cruise and this is very important," Tan said.
Royal Caribbean ships will come back to Vietnam this year and next, Tan said after the tour organized by Hanoi Toserco for travel agents and reporters to inspect the Rhapsody of the Seas.
The cruise ship with some 1,900 passengers aboard left Vietnam for Thailand last night after visiting Halong, Danang and Nha Trang cities.
Pham Phu Tron, director of Hanoi Toserco in HCMC, told the Daily that the Hanoi-based company and other travel firms now arranged package tours that cover cruises and holidays in Singapore and Hong Kong. (SGT)
"Vietnam is definitely an important link in our Asian development," Kelvin Tan told the Daily on Rhapsody of the Seas yesterday when the giant vessel docked at Phu My Port in Ba Ria-Vung Tau Province.
Tan said Vietnam had emerged as a popular destination on the world's tourism map, especially for European and North American guests. "The country has many beautiful and historical cities along the coast."
He clarified guests aboard a Royal Caribbean ship would be able to visit Vietnam's economic hub of HCMC, the World Heritage-listed sites of Hue and Hoi An in the central region, as well as Hanoi and the World Heritage site of Halong Bay, both in northern Vietnam.
Tan stressed Royal Caribbean was targeting guests in Vietnam and elsewhere in Asia for the company's short cruises with about three to five nights. "I think these short cruises will be very popular with Vietnamese customers."
Tan said there were a few ways for Vietnamese passengers to board a Royal Caribbean ship in Asia. "This season, we are operating in Singapore and Hong Kong so guests should fly to these destinations to board our ship for cruises. So it is definitely an air-sea package."
Tan explained Vietnamese passengers did not have to apply for a visa for the cruises covering Singapore, Malaysia and Thailand. However, they have to get visas for the cruise from Hong Kong to Japan.
Vietnamese passengers will have to pay US$300 on average for a package with three nights of staying on a Royal Caribbean ship, and the cost does not include airfare, he said.
"The cost is very affordable as it covers all the fees for accommodation, meals, entertainment shows and other activities and services when they are aboard our ship," Tan said. He added a cruise offered passengers an opportunity to relax and visit many destinations in one time.
Actually, Royal Caribbean ships have docked in Vietnam several times, including in 2000 and 2001, but this time was quite different.
"The big difference is that we come here now to cater to all Asian passengers, including Vietnamese. In the past, we mainly catered to Europeans and North Americans," Tan said.
He furthered Royal Caribbean started its plan for the itinerary in Asia, and chose Vietnam when looking for Asian ports for its ships to dock.
Over the past years, Royal Caribbean has already serviced Vietnamese guests on its short cruises from Singapore or on its Mediterranean cruise last year.
"We have seen interest of travel agents and more people in our Royal Caribbean ships. We feel that now is the right time to come to this market as the demand for outbound tours is growing very fast. I think people start to accept the cruise and this is very important," Tan said.
Royal Caribbean ships will come back to Vietnam this year and next, Tan said after the tour organized by Hanoi Toserco for travel agents and reporters to inspect the Rhapsody of the Seas.
The cruise ship with some 1,900 passengers aboard left Vietnam for Thailand last night after visiting Halong, Danang and Nha Trang cities.
Pham Phu Tron, director of Hanoi Toserco in HCMC, told the Daily that the Hanoi-based company and other travel firms now arranged package tours that cover cruises and holidays in Singapore and Hong Kong. (SGT)
50% of RoK investors satisfied with Vietnam’s investment environment
94% of South Korean investors intend to further invest in Vietnam, said Director of Kotra in Hanoi Kim Won Hoo at a recent conference on foreign direct investment in the WTO period.
He said that many South Korean investors see Vietnam as an increasingly important investment market.
However, only some 50% of them have expressed satisfaction with their businesses in Vietnam.
According to Kotra, there are a number of large obstacles to business operations and direct investment in Vietnam.
First, the infrastructure in Vietnam is generally underdeveloped and prices of land and energy have jumped up sharply in a short time.
Second, it is sometimes hard for foreign businesses to recruit skilled labourers with a good command of English, and especially Korean.
Third, as Vietnam’s legal system is incomplete, foreign investors often have to wait for new laws or legal documents.
Kim Won Hoo suggested that Vietnam listen and study foreign investors’ ideas and opinions to keep being a story of success in foreign direct investment. (ANTD)
He said that many South Korean investors see Vietnam as an increasingly important investment market.
However, only some 50% of them have expressed satisfaction with their businesses in Vietnam.
According to Kotra, there are a number of large obstacles to business operations and direct investment in Vietnam.
First, the infrastructure in Vietnam is generally underdeveloped and prices of land and energy have jumped up sharply in a short time.
Second, it is sometimes hard for foreign businesses to recruit skilled labourers with a good command of English, and especially Korean.
Third, as Vietnam’s legal system is incomplete, foreign investors often have to wait for new laws or legal documents.
Kim Won Hoo suggested that Vietnam listen and study foreign investors’ ideas and opinions to keep being a story of success in foreign direct investment. (ANTD)
Metro Cash & Carry reaches Binh Duong
Binh Duong on January 21 approved in principle the Metro Cash & Carry Viet Nam’s 15 million Euro project to open the biggest whole-sale supermarket in the industrial park-booming province.
The company said it has laid much hope on this dynamic southern economy, especially its consumer market.
The construction is expected to kick off within this year.
Binh Duong provinces borders Ho Chi Minh City to the south and the west.
The company said it has laid much hope on this dynamic southern economy, especially its consumer market.
The construction is expected to kick off within this year.
Binh Duong provinces borders Ho Chi Minh City to the south and the west.
Banks’ compulsory ratio raised to curb inflation
The State Bank of Vietnam (SBV) has made its first move in its plan to control inflation, expected to be very high this year, by requiring a higher compulsory reserve ratio for deposits.
Inflation reached 12.63% by the end of 2007; this was partly attributed to the poor monetary policy of the central bank. Now though, it seems the central bank has learned from its mistake: immediately in 2008, it decided to tighten credit by increasing the compulsory reserve ratio.
The compulsory reserve ratios, according to decision No 187 dated January 16, will increase by 1% and be applied to all kinds of deposits.
The VND demand deposit and less-than-12-month term deposits will have a compulsory reserve ratio of 11% instead of 10%, while the ratio for more-than-12-month term deposits will be 5% instead of 4%. The same compulsory reserve ratios will also be applied for foreign currency deposits.
The decision does not become effective immediately, but will become valid in February 2008, so that commercial banks can have more time to prepare. Meanwhile, the ratio increases will not be applied to credit institutions operating in rural areas (agriculture bank, rural joint stock banks, the central people’s credit fund and cooperation banks) so as to support economic development of rural areas.
An SBV official said the compulsory reserve ratio increases are actually quite gentle when compared to the increases in June 2007, when the central bank unexpectedly increase ratios into double digits (for example, the ratio for VND deposits of less than 12 months rose from 5% to 10%).
It seems that the central bank has decided to change tactics; it is trying to tighten credit step by step instead of suddenly turning off the ‘capital tap’, in order to avoid abrupt market shocks.
The official also said that the central bank cannot raise the compulsory reserve ratio too sharply right before Tet, which is always considered the most ‘sensitive’ moment of the year. In general, commercial banks need more capital in the months before Tet to fund their clients’ business deals, and the sharp increases in the compulsory reserve ratio will force banks to pay higher capital mobilization costs.
Deputy Director of a joint stock bank said the demand for capital is increasing, which is why banks have to offer higher interest rates for deposits.
“The 1% compulsory reserve ratio increase means that our capital mobilization cost is 1% higher,” he said.
However, he acknowledged that with the slight increase of 1%, commercial banks ‘will still be able to manage’. Besides, he said, this is a necessary move to curb inflation.
Leader of a state owned bank estimates that the decision will help the central bank withdraw some VND3tril ($187.5mil) from circulation.
The official believes that this is just the first move by the central bank in its strategy to control inflation, which may be followed by future, higher compulsory reserve ratios.
“The central bank is striving to gradually withdraw money from circulation, stabilize their monetary policy and curb inflation,” he said.
The 1% increase of the compulsory reserve ratio is just the first step the central bank needs to take in order to slow down inflation. It remains unclear how many times the compulsory reserve ratio will increase and when the central bank will stop. The State Bank will make those decisions after considering the performance of the monetary market.
Of course, commercial banks do not want these increases, because they make their capital mobilization cost higher. However, “if the compulsory reserve ratios are raised step by step, we will be okay,” a bank’s Director said. (Securities Investment Newspaper)
Inflation reached 12.63% by the end of 2007; this was partly attributed to the poor monetary policy of the central bank. Now though, it seems the central bank has learned from its mistake: immediately in 2008, it decided to tighten credit by increasing the compulsory reserve ratio.
The compulsory reserve ratios, according to decision No 187 dated January 16, will increase by 1% and be applied to all kinds of deposits.
The VND demand deposit and less-than-12-month term deposits will have a compulsory reserve ratio of 11% instead of 10%, while the ratio for more-than-12-month term deposits will be 5% instead of 4%. The same compulsory reserve ratios will also be applied for foreign currency deposits.
The decision does not become effective immediately, but will become valid in February 2008, so that commercial banks can have more time to prepare. Meanwhile, the ratio increases will not be applied to credit institutions operating in rural areas (agriculture bank, rural joint stock banks, the central people’s credit fund and cooperation banks) so as to support economic development of rural areas.
An SBV official said the compulsory reserve ratio increases are actually quite gentle when compared to the increases in June 2007, when the central bank unexpectedly increase ratios into double digits (for example, the ratio for VND deposits of less than 12 months rose from 5% to 10%).
It seems that the central bank has decided to change tactics; it is trying to tighten credit step by step instead of suddenly turning off the ‘capital tap’, in order to avoid abrupt market shocks.
The official also said that the central bank cannot raise the compulsory reserve ratio too sharply right before Tet, which is always considered the most ‘sensitive’ moment of the year. In general, commercial banks need more capital in the months before Tet to fund their clients’ business deals, and the sharp increases in the compulsory reserve ratio will force banks to pay higher capital mobilization costs.
Deputy Director of a joint stock bank said the demand for capital is increasing, which is why banks have to offer higher interest rates for deposits.
“The 1% compulsory reserve ratio increase means that our capital mobilization cost is 1% higher,” he said.
However, he acknowledged that with the slight increase of 1%, commercial banks ‘will still be able to manage’. Besides, he said, this is a necessary move to curb inflation.
Leader of a state owned bank estimates that the decision will help the central bank withdraw some VND3tril ($187.5mil) from circulation.
The official believes that this is just the first move by the central bank in its strategy to control inflation, which may be followed by future, higher compulsory reserve ratios.
“The central bank is striving to gradually withdraw money from circulation, stabilize their monetary policy and curb inflation,” he said.
The 1% increase of the compulsory reserve ratio is just the first step the central bank needs to take in order to slow down inflation. It remains unclear how many times the compulsory reserve ratio will increase and when the central bank will stop. The State Bank will make those decisions after considering the performance of the monetary market.
Of course, commercial banks do not want these increases, because they make their capital mobilization cost higher. However, “if the compulsory reserve ratios are raised step by step, we will be okay,” a bank’s Director said. (Securities Investment Newspaper)
Rice export targets lifted as India, Thailand cut back
The government has set a target of 4.5mil tonnes of rice exports this year, which is expected to bring in US$1.7bil in revenue, an increase over last year of $300mil.
The target was set out by the Ministry of Agriculture and Rural Development at a meeting last Friday in Hanoi.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favourable this year because of strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3mil tonnes annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume.
"Export rice prices will remain high, benefiting both enterprises and farmers," he added.
Vietnam exported a total of 4.5mil tonnes of rice last year, earning $1.4bil in revenue.
The export rice price stood at $309 a tonne, up $41 a tonne over the previous year.
Local rice exporters said that rice prices offered by foreign importers hade risen by $20 a tonne over the past week to $385 a tonne, and could climb to $400 a tonne.
On the local market, rice prices were VND4,000 a kilogram, the minimum price set by the VFA for the year, according to Phong.
Phong warned that rice exporting businesses should be cautious and wait for the highest possible price before signing contracts.
"Rice prices are on an upward trend so we recommend that farmers not sell rice immediately unless they really need the money," he said.
Deputy Minister of Trade and Industry Nguyen Thanh Bien said that the 2008 rice export volume of 4.5mil tonnes scheduled for connacts include 700,000 tonnes in the first quarter, 1.5mil tonnes in the second quarter, 1.5mil in the third quarter and 800,000 tonnes in the last quarter.
Contract problems
Despite favourable conditions for rice exports in 2007, rice export businesses said that profits were declining compared with previous years, with some companies only breaking even or suffering a loss.
The director of a rice export company, who asked to remain anonymous, said that many rice contracts at the end of last year were not honoured because local rice prices were higher than the price quoted in the contracts.
He said the contract-based allocation of rice quotas was unfair and lacked transparency.
"When the allocated quota of rice export volume reaches us, export prices on the local market have already climbed to VND4,200 a kilo, while the price contracted is merely VND3,800 a kilo," he explained, adding that losses were inevitable.
Many companies have complained that they received information about export quotas two to three months after contracts had been signed.
The best time to buy rice, they said, would be when a business was able to decide whether it can make a profit or a loss.
Another problem is that local rice exporters can take out bank loans only if they have contracts that state the quotas.
The allocated time for rice shipment delivery was also too long, exporters said.
Unhealthy competition among rice exporters in securing rice contracts by offering a low bid is also damaging both businesses and farmers, according to industry insiders.
"If businesses scramble to win rice contracts at a competitively low price, they will suffer if export rice prices should later soar on the local market," said Pham Van Bay, director of An Giang Agricultural Products and Food-stuff Co. (VNS)
The target was set out by the Ministry of Agriculture and Rural Development at a meeting last Friday in Hanoi.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favourable this year because of strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3mil tonnes annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume.
"Export rice prices will remain high, benefiting both enterprises and farmers," he added.
Vietnam exported a total of 4.5mil tonnes of rice last year, earning $1.4bil in revenue.
The export rice price stood at $309 a tonne, up $41 a tonne over the previous year.
Local rice exporters said that rice prices offered by foreign importers hade risen by $20 a tonne over the past week to $385 a tonne, and could climb to $400 a tonne.
On the local market, rice prices were VND4,000 a kilogram, the minimum price set by the VFA for the year, according to Phong.
Phong warned that rice exporting businesses should be cautious and wait for the highest possible price before signing contracts.
"Rice prices are on an upward trend so we recommend that farmers not sell rice immediately unless they really need the money," he said.
Deputy Minister of Trade and Industry Nguyen Thanh Bien said that the 2008 rice export volume of 4.5mil tonnes scheduled for connacts include 700,000 tonnes in the first quarter, 1.5mil tonnes in the second quarter, 1.5mil in the third quarter and 800,000 tonnes in the last quarter.
Contract problems
Despite favourable conditions for rice exports in 2007, rice export businesses said that profits were declining compared with previous years, with some companies only breaking even or suffering a loss.
The director of a rice export company, who asked to remain anonymous, said that many rice contracts at the end of last year were not honoured because local rice prices were higher than the price quoted in the contracts.
He said the contract-based allocation of rice quotas was unfair and lacked transparency.
"When the allocated quota of rice export volume reaches us, export prices on the local market have already climbed to VND4,200 a kilo, while the price contracted is merely VND3,800 a kilo," he explained, adding that losses were inevitable.
Many companies have complained that they received information about export quotas two to three months after contracts had been signed.
The best time to buy rice, they said, would be when a business was able to decide whether it can make a profit or a loss.
Another problem is that local rice exporters can take out bank loans only if they have contracts that state the quotas.
The allocated time for rice shipment delivery was also too long, exporters said.
Unhealthy competition among rice exporters in securing rice contracts by offering a low bid is also damaging both businesses and farmers, according to industry insiders.
"If businesses scramble to win rice contracts at a competitively low price, they will suffer if export rice prices should later soar on the local market," said Pham Van Bay, director of An Giang Agricultural Products and Food-stuff Co. (VNS)
Stars, balls presented to honour most distinguished enterprises
The Bank for Investment and Development of Viet Nam (BIDV), Bao Tin Minh Chau Jewelry, Vinpearl Tourism and Trade Co, Traphaco Pharmaceuticals and FPT were among the distinguished enterprises honoured in an awards ceremony yesterday at My Dinh National Convention Centre in Hanoi.
"They contributed to the development of the domestic economy over the past year and helped attract more overseas capital into the Vietnam market," said Nguyen Huu Tang, head of the judges' panel. "They deserved the award."
The awards, sponsored by BIDV, are an annual event to help discover business talent and support it for further development, said Tang.
"The ceremony is also a place to gather owners of well-known domestic trademarks that present a good image of Vietnam," he said.
The judges' panel chose 93 enterprises, including 50 entrepreneurs and 43 products and services, for three levels of awards, the Viet Nam Star for distinguished entrepreneurs, the Golden Ball for distinguished enterprises, and the Viet Nam Quintessence award for the best products and services.
Pham Diu Hien, director of Binh An Seafood Processing Co, one of the winners, said that the award would help raise the prestige of the company on the domestic market as well as create opportunities for greater access to global markets.
"Thanks to the award today, we understand how important we are in the local economy and we will try to have an even more developed business next year," Hien said.
Mai Huong Noi, a representative from Vincom, said that WTO accession and integration were a good chance for Vietnamese firms to upgrade their businesses and related systems.
"Encouragement from the Government and the advantages of WTO accession should create more distinguished enterprises in the near future," Noi said. (VNS)
"They contributed to the development of the domestic economy over the past year and helped attract more overseas capital into the Vietnam market," said Nguyen Huu Tang, head of the judges' panel. "They deserved the award."
The awards, sponsored by BIDV, are an annual event to help discover business talent and support it for further development, said Tang.
"The ceremony is also a place to gather owners of well-known domestic trademarks that present a good image of Vietnam," he said.
The judges' panel chose 93 enterprises, including 50 entrepreneurs and 43 products and services, for three levels of awards, the Viet Nam Star for distinguished entrepreneurs, the Golden Ball for distinguished enterprises, and the Viet Nam Quintessence award for the best products and services.
Pham Diu Hien, director of Binh An Seafood Processing Co, one of the winners, said that the award would help raise the prestige of the company on the domestic market as well as create opportunities for greater access to global markets.
"Thanks to the award today, we understand how important we are in the local economy and we will try to have an even more developed business next year," Hien said.
Mai Huong Noi, a representative from Vincom, said that WTO accession and integration were a good chance for Vietnamese firms to upgrade their businesses and related systems.
"Encouragement from the Government and the advantages of WTO accession should create more distinguished enterprises in the near future," Noi said. (VNS)
Foreign investment in Vietnam's apparel disappoints
Vietnam’s textile sector lured much less foreign capital than expected after the country joined the World Trade Organization, according to the annual report of the Association of Garment Textile Embroidery-Knitting.
Foreign investors were reluctant to invest in the industry because of concerns about the U.S government’s monitoring program which applies to certain categories of Vietnam’s textile and apparel products, said the report, which was released Thursday.
Foreign investors committed to invest about US$388 million in 76 projects in 2007, he said.
The commitment represents about two percent of Vietnam’s $20.3 billion record foreign direct investment last year.
Total investment in the sector amounts to about $5.4 billion.
The sources said foreign investment mainly focused on manufacturing items such as fabric, buttons and thread.
Manufacturing, which relies heavily on imports, is the sector’s weakest area.
The top foreign investors by nation were Taiwan with $2.3 billion, Korea with $1.6 billion and Hong Kong with $400 million.
Foreign investors were reluctant to invest in the industry because of concerns about the U.S government’s monitoring program which applies to certain categories of Vietnam’s textile and apparel products, said the report, which was released Thursday.
Foreign investors committed to invest about US$388 million in 76 projects in 2007, he said.
The commitment represents about two percent of Vietnam’s $20.3 billion record foreign direct investment last year.
Total investment in the sector amounts to about $5.4 billion.
The sources said foreign investment mainly focused on manufacturing items such as fabric, buttons and thread.
Manufacturing, which relies heavily on imports, is the sector’s weakest area.
The top foreign investors by nation were Taiwan with $2.3 billion, Korea with $1.6 billion and Hong Kong with $400 million.
IT firms wake up
2007 was an up-and-down year for Vietnamese IT companies. The IT market became bigger and fluctuated very rapidly in the year, greatly influenced IT firms.
M&A (merge & acquisition) is normal thing of the international IT circle but it was really strong in Vietnam in 2007. Because of M&A, some wholly Vietnamese-owned companies suddenly became Japanese or Israelis ones. Some small programming groups became teams of Japanese firms. Some foreign companies established their subsidiaries in Vietnam. For example, GATe Technology was born from a joint venture between GCS and some French firms. TMA Solutions cooperated with Danish and Swiss partners to establish IT service providing subsidiaries.
The local IT circle is keeping an eye on US-based Computer Sciences Corporation’s (CSC) acquisition of First Consulting Group, Inc, the mother group of FCG Vietnam early this year.
CSC is a provider of applications, systematic integration, software processing services while FCG is specialised in consulting and development with 2,500 staffs, including over 600 in Vietnam. It is a good news for Vietnam’s IT industry if FCG Vietnam joins CSC’s contingent of 87,000 workers in 92 countries, with 2007 revenue of $14.9 billion in 2007.
The forerunner of FCG Vietnam was a small company named Tan Tien, which was set up by a group of students from the Electronic Faculty of HCM City University of Technology. Tan Tien named was replaced by Paragon Vietnam when some Vietnamese American from Paragon Solutions Inc. came to Vietnam to seek partner. FCG Inc. then bought Paragon and Paragon Vietnam became FCG Vietnam.
M&A affairs have brought Tan Tien to the world. Despite changes, this firm is focusing on the local market, rather than outsourcing activities.
The negotiation for the merging of SilkRoad and Global CyberSoft, which were invested by the same investment fund, sometimes lured the public. But finally, Harvey Nash, a British software processing and employment consulting group, bought SilkRoad. According to Harvey Nash, they want to develop software in Asia and use the high-quality IT human resources of Vietnam to serve its business in Europe and the US.
Meanwhile, small companies coordinated with each other to become stronger or became partners of big groups. These changes made the local IT market nearer to the sensitive environment of the world, which has many opportunities and challenges. Anyways, experts said this is positive move, which can help form big IT companies in Vietnam.
The failure of Project 112 left a big lesson to the IT sector. That’s the awareness of where the real value of IT is: in information or in technology? IT firms begin to realise the core value of information, not technology. The concept about information-based development is spreading and it is considered the most positive sign in the IT world last year.
IT firms expect the change of thinking of management agencies and businesses about the urgent change of administration model, which use IT as support tools for system reforms. (VNeconomy)
M&A (merge & acquisition) is normal thing of the international IT circle but it was really strong in Vietnam in 2007. Because of M&A, some wholly Vietnamese-owned companies suddenly became Japanese or Israelis ones. Some small programming groups became teams of Japanese firms. Some foreign companies established their subsidiaries in Vietnam. For example, GATe Technology was born from a joint venture between GCS and some French firms. TMA Solutions cooperated with Danish and Swiss partners to establish IT service providing subsidiaries.
The local IT circle is keeping an eye on US-based Computer Sciences Corporation’s (CSC) acquisition of First Consulting Group, Inc, the mother group of FCG Vietnam early this year.
CSC is a provider of applications, systematic integration, software processing services while FCG is specialised in consulting and development with 2,500 staffs, including over 600 in Vietnam. It is a good news for Vietnam’s IT industry if FCG Vietnam joins CSC’s contingent of 87,000 workers in 92 countries, with 2007 revenue of $14.9 billion in 2007.
The forerunner of FCG Vietnam was a small company named Tan Tien, which was set up by a group of students from the Electronic Faculty of HCM City University of Technology. Tan Tien named was replaced by Paragon Vietnam when some Vietnamese American from Paragon Solutions Inc. came to Vietnam to seek partner. FCG Inc. then bought Paragon and Paragon Vietnam became FCG Vietnam.
M&A affairs have brought Tan Tien to the world. Despite changes, this firm is focusing on the local market, rather than outsourcing activities.
The negotiation for the merging of SilkRoad and Global CyberSoft, which were invested by the same investment fund, sometimes lured the public. But finally, Harvey Nash, a British software processing and employment consulting group, bought SilkRoad. According to Harvey Nash, they want to develop software in Asia and use the high-quality IT human resources of Vietnam to serve its business in Europe and the US.
Meanwhile, small companies coordinated with each other to become stronger or became partners of big groups. These changes made the local IT market nearer to the sensitive environment of the world, which has many opportunities and challenges. Anyways, experts said this is positive move, which can help form big IT companies in Vietnam.
The failure of Project 112 left a big lesson to the IT sector. That’s the awareness of where the real value of IT is: in information or in technology? IT firms begin to realise the core value of information, not technology. The concept about information-based development is spreading and it is considered the most positive sign in the IT world last year.
IT firms expect the change of thinking of management agencies and businesses about the urgent change of administration model, which use IT as support tools for system reforms. (VNeconomy)
Golden Square Complex under construction in Da Nang
Dong A Real Estate Joint Stock Company on January 19 kicked off construction of the Golden Square Complex in central Da Nang city.
The complex is built on 10,600 square metres with total investment of VND 1 trillion.
The complex consists of three towers of 21, 27 and 38 storeys. The five-storey blocks are reserved for trade centres, cinemas, entertainment areas and health care clubs.
The 38-storey central tower has 240 luxurious apartments. The other two towers are for offices and hotels. Total floor space is 118,000 square metres.
Construction of the complex will be completed by 2010.
The complex is built on 10,600 square metres with total investment of VND 1 trillion.
The complex consists of three towers of 21, 27 and 38 storeys. The five-storey blocks are reserved for trade centres, cinemas, entertainment areas and health care clubs.
The 38-storey central tower has 240 luxurious apartments. The other two towers are for offices and hotels. Total floor space is 118,000 square metres.
Construction of the complex will be completed by 2010.
Viet Nam attends agricultural exhibition in Berlin
Viet Nam has joined more than 1,500 representatives from 52 countries to attend an agricultural exhibition in Berlin , Germany .
The Vietnamese businesses display p alm-leaf conical hat s, traditional foods, fruits and wine, with hats and blue dragon fruits at four stalls drawing special attention from visitors.
Vu Chi Tho, owner of a Vietnamese restaurant set up the exhibition, said the event offers a good chance not only for business operations but also for promoting Vietnamese culture.
The exhibition, which is expected to draw around 400,000 visitors, will run through January 27.
The Vietnamese businesses display p alm-leaf conical hat s, traditional foods, fruits and wine, with hats and blue dragon fruits at four stalls drawing special attention from visitors.
Vu Chi Tho, owner of a Vietnamese restaurant set up the exhibition, said the event offers a good chance not only for business operations but also for promoting Vietnamese culture.
The exhibition, which is expected to draw around 400,000 visitors, will run through January 27.
Several major seaports to be built in 2008
The Viet Nam National Shipping Lines (Vinalines) plans to carry out several major projects on building seaports in 2008.
First, construction of the Van Phong international transit seaport in the central province of Khanh Hoa and the Lach Huyen deep water port in the northern city of Hai Phong will start in the first quarter of this year.
Van Phong port will be a large port in Asia with a capacity of handling 300 million tonnes of goods per year and receiving 400,000-tonne ships.
Also in the first quarter, Vinalines will break ground for the construction of wharfs 2, 3, 4 of Cai Lan port in northern Quang Ninh province to receive 40,000 DWT ships, and five new wharfs for 20,000 DWT ships at Dinh Vu port in Hai Phong city.
Vinalines also plans to cooperate with US and Danish firms to build two more container wharfs at Cai Mep-Thi Vai port and one more container port in Ben Dinh-Sao Mai, both in the southern Ba Ria-Vung Tau province.
In the 2008-11 period, the corporation will extend the Ba Ngoi port in the Cam Ranh Gulf , the central Khanh Hoa province, by building two additional container wharfs, and build a seaport in the Son Tra peninsula in central Da Nang province. (VNA)
First, construction of the Van Phong international transit seaport in the central province of Khanh Hoa and the Lach Huyen deep water port in the northern city of Hai Phong will start in the first quarter of this year.
Van Phong port will be a large port in Asia with a capacity of handling 300 million tonnes of goods per year and receiving 400,000-tonne ships.
Also in the first quarter, Vinalines will break ground for the construction of wharfs 2, 3, 4 of Cai Lan port in northern Quang Ninh province to receive 40,000 DWT ships, and five new wharfs for 20,000 DWT ships at Dinh Vu port in Hai Phong city.
Vinalines also plans to cooperate with US and Danish firms to build two more container wharfs at Cai Mep-Thi Vai port and one more container port in Ben Dinh-Sao Mai, both in the southern Ba Ria-Vung Tau province.
In the 2008-11 period, the corporation will extend the Ba Ngoi port in the Cam Ranh Gulf , the central Khanh Hoa province, by building two additional container wharfs, and build a seaport in the Son Tra peninsula in central Da Nang province. (VNA)
Small money is hard to come by
Small change has become scarcer and scarcer in circulation. Meanwhile, the State Bank of Vietnam said it has been providing small change steadily. Where has all the small change gone?
When making payment at retailers, sellers always prefer smaller value banknotes. They grimace unhappily if you give them a VND500,000 bill. In Vietnam, old tattered notes and blackened coins may be more favored than sterling larger-value ones.
The shortage of small change has become more serious these days, as people rush to buy goods for Tet. Supermarts, vendors, shops and trade centers all complain that they do not have enough small change (VND500, VND1,000, VND2,000 and VND5,000) to pay to clients.
The owner of a pharmacy on Road No 13 in Thu Duc district, HCM City, said that she needs several millions of VND in small change to pay clients. In order to get small-value banknotes and coins she promises children who sell lottery tickets that she will buy a lot of tickets if they agree to change money for her.
An employee at Nguyen Van Cu book store said they need some one million VND a day in small change, and it has signed contracts with the nearby Phuong Nam Bank branch to provide small change.
If you go to Big C supermart, you will see a board that says the supermart needs small change and will offer 1% of the value for all small monies exchanges for big (i.e. if you provide VND1mil in small change, you can get VND1.1mil in big-value bank notes). Regardless, the supermart is still having trouble meeting the demand for small change.
At traditional markets, vegetable sellers always ask consumers to accept chili or mints as change. At supermarkets, cashiers automatically give chewing gum or envelopes instead. In fact, a lot of consumers are unhappy with this system because they are forced to buy products they do not want.
In 2003, the State Bank of Vietnam issued coins with face value of VND500, VND1,000, VND2,000 and VND5,000. At that time, the coins were not welcomed by sellers and buyers. However, the situation has become quite different: buyers and sellers have to use coins because they have no other choice in getting small change.
The disappearing coins
Hoa, a housewife in Binh Thanh district in HCM City said that she does not want to keep coins in her wallet because she often drops and loses them. Instead, she puts all her coins into a clay piggy bank. Recently, she counted up her piggy bank savings, which amounted to VND2mil.
For families with small children, parents and grandparents always give children coins as gifts, which are always put into piggy banks. At the end of the year, just before Tet, the money is used to buy clothes and toys for children.
Suppose that every family spends VND50,000 on everyday expenses, including VND20,000 in small change, then 1mil families will need VND20bil a day. Supposed that every family has VND50,000 in small change in their piggy banks, then 1mil families will keep VND50bil, meaning a lot of small money resources are not in circulation.
Money issuer’s responsibility
Analysts say the shortage of small change would not be so serious if the State Bank issued banknotes instead of coins.
It seems the central bank has ‘forgotten’ the customs of their own people. Meanwhile, the system of vending machines where people can utilize coins has not yet developed.
In fact, the lack of small change once occurred in the years between 1986 and 1990. At that time, the money issuer thought that small change and big-value bank notes were both money and did not pay attention to issuing small-value bank notes. As a result, people had to accept changing money at a 10/9 ratio (giving VND10 to get VND9 back).
It is clear that the money issuer has not carefully considered societal habits and characteristics when issuing coins.
When making payment at retailers, sellers always prefer smaller value banknotes. They grimace unhappily if you give them a VND500,000 bill. In Vietnam, old tattered notes and blackened coins may be more favored than sterling larger-value ones.
The shortage of small change has become more serious these days, as people rush to buy goods for Tet. Supermarts, vendors, shops and trade centers all complain that they do not have enough small change (VND500, VND1,000, VND2,000 and VND5,000) to pay to clients.
The owner of a pharmacy on Road No 13 in Thu Duc district, HCM City, said that she needs several millions of VND in small change to pay clients. In order to get small-value banknotes and coins she promises children who sell lottery tickets that she will buy a lot of tickets if they agree to change money for her.
An employee at Nguyen Van Cu book store said they need some one million VND a day in small change, and it has signed contracts with the nearby Phuong Nam Bank branch to provide small change.
If you go to Big C supermart, you will see a board that says the supermart needs small change and will offer 1% of the value for all small monies exchanges for big (i.e. if you provide VND1mil in small change, you can get VND1.1mil in big-value bank notes). Regardless, the supermart is still having trouble meeting the demand for small change.
At traditional markets, vegetable sellers always ask consumers to accept chili or mints as change. At supermarkets, cashiers automatically give chewing gum or envelopes instead. In fact, a lot of consumers are unhappy with this system because they are forced to buy products they do not want.
In 2003, the State Bank of Vietnam issued coins with face value of VND500, VND1,000, VND2,000 and VND5,000. At that time, the coins were not welcomed by sellers and buyers. However, the situation has become quite different: buyers and sellers have to use coins because they have no other choice in getting small change.
The disappearing coins
Hoa, a housewife in Binh Thanh district in HCM City said that she does not want to keep coins in her wallet because she often drops and loses them. Instead, she puts all her coins into a clay piggy bank. Recently, she counted up her piggy bank savings, which amounted to VND2mil.
For families with small children, parents and grandparents always give children coins as gifts, which are always put into piggy banks. At the end of the year, just before Tet, the money is used to buy clothes and toys for children.
Suppose that every family spends VND50,000 on everyday expenses, including VND20,000 in small change, then 1mil families will need VND20bil a day. Supposed that every family has VND50,000 in small change in their piggy banks, then 1mil families will keep VND50bil, meaning a lot of small money resources are not in circulation.
Money issuer’s responsibility
Analysts say the shortage of small change would not be so serious if the State Bank issued banknotes instead of coins.
It seems the central bank has ‘forgotten’ the customs of their own people. Meanwhile, the system of vending machines where people can utilize coins has not yet developed.
In fact, the lack of small change once occurred in the years between 1986 and 1990. At that time, the money issuer thought that small change and big-value bank notes were both money and did not pay attention to issuing small-value bank notes. As a result, people had to accept changing money at a 10/9 ratio (giving VND10 to get VND9 back).
It is clear that the money issuer has not carefully considered societal habits and characteristics when issuing coins.
EU gives access to 25 more seafood exporters
The European Commission (EC) has recognized 25 more Vietnamese seafood companies as meeting requirements to export products to the EU. The newly recognized seafood companies will be able to export to the EU as of January 31, 2008.
With the new decision, the total number of Vietnamese seafood companies eligible to export to the EU has reached 269.
The 25 newly recognized companies include two canned food processors and 23 frozen product exporters.
Problems with food hygiene and antibiotic residue were the main reasons why the EU had previously rejected seafood imports from Vietnam.
In 2007, the EC’s Health and Consumer Protection Directorate sent two inspection delegations to Vietnam to examine the implementation of the program on controlling toxic chemical substances in aquaculture (January 2007), and examine the control over seafood farming and processing sanitation (September 2007).
The EC’s inspection tours led to the commission’s decision that actions taken by the Vietnamese side to ensure the safety and sanitation of seafood products have made Vietnam’s seafood eligible for export to the EU.
With more than 500mil consumers, the EU remains one of Vietnam’s biggest seafood markets, which consumes 39% of total exports. In 2007, Vietnam exported 274,700 tons of seafood to the EU, bringing in $912mil, an increase of 29% over the previous year.
Commercial affair divisions under Vietnamese embassies in EU countries have forecast that the EU’s consumption of seafood products will increase by 5-8% this year, which will make the seafood price increase by 5-7%. Higher demand will bring more opportunities to Vietnamese exporters. However, analysts warn that Vietnam will have to compete with North European countries, Russia, Ecuador, China, Thailand, India and Canada for EU market share.
While the supply of shrimp to other parts of the world has been decreasing, the supply to the EU did not see any considerable decrease. Vietnam’s frozen shrimp products now hold some 4% of the EU market share.
It is expected that Vietnam’s seafood export turnover will reach $1bil in 2008, and the EU will remain Vietnam’s biggest market.
The EU is also a part of the world that imports most of the global supply of seafood. In 2006, the 25 members of the EU consumed $38.9bil worth of seafood, an increase of 10.7% compared to 2005. (VNN)
With the new decision, the total number of Vietnamese seafood companies eligible to export to the EU has reached 269.
The 25 newly recognized companies include two canned food processors and 23 frozen product exporters.
Problems with food hygiene and antibiotic residue were the main reasons why the EU had previously rejected seafood imports from Vietnam.
In 2007, the EC’s Health and Consumer Protection Directorate sent two inspection delegations to Vietnam to examine the implementation of the program on controlling toxic chemical substances in aquaculture (January 2007), and examine the control over seafood farming and processing sanitation (September 2007).
The EC’s inspection tours led to the commission’s decision that actions taken by the Vietnamese side to ensure the safety and sanitation of seafood products have made Vietnam’s seafood eligible for export to the EU.
With more than 500mil consumers, the EU remains one of Vietnam’s biggest seafood markets, which consumes 39% of total exports. In 2007, Vietnam exported 274,700 tons of seafood to the EU, bringing in $912mil, an increase of 29% over the previous year.
Commercial affair divisions under Vietnamese embassies in EU countries have forecast that the EU’s consumption of seafood products will increase by 5-8% this year, which will make the seafood price increase by 5-7%. Higher demand will bring more opportunities to Vietnamese exporters. However, analysts warn that Vietnam will have to compete with North European countries, Russia, Ecuador, China, Thailand, India and Canada for EU market share.
While the supply of shrimp to other parts of the world has been decreasing, the supply to the EU did not see any considerable decrease. Vietnam’s frozen shrimp products now hold some 4% of the EU market share.
It is expected that Vietnam’s seafood export turnover will reach $1bil in 2008, and the EU will remain Vietnam’s biggest market.
The EU is also a part of the world that imports most of the global supply of seafood. In 2006, the 25 members of the EU consumed $38.9bil worth of seafood, an increase of 10.7% compared to 2005. (VNN)
Economic, Infrastructure
A Vietnamese software processor, NCS Solutions, has established NCS Japan, its overseas subsidiary, to design, manufacture and trade software in Japan.
This is a wholly Vietnamese owned company, based in Tokyo. Its 10 year plan is to specialize in designing, producing and trading software, digital content products, train software engineers and provide online value added consulting services and IT solutions. The firm aims to earn revenue of US$2 million this year.
NSC Japan has legal capital of $200,000 and has 20 employees. This is the second Vietnamese software company in Japan; the other is FPT Software Japan, a subsidiary of FPT Group.
It is said that the appearance of Vietnam’s second software company in Japan is a good sign because it will contribute to realizing the goal of $800 million in revenue from software exports. (VNE)
This is a wholly Vietnamese owned company, based in Tokyo. Its 10 year plan is to specialize in designing, producing and trading software, digital content products, train software engineers and provide online value added consulting services and IT solutions. The firm aims to earn revenue of US$2 million this year.
NSC Japan has legal capital of $200,000 and has 20 employees. This is the second Vietnamese software company in Japan; the other is FPT Software Japan, a subsidiary of FPT Group.
It is said that the appearance of Vietnam’s second software company in Japan is a good sign because it will contribute to realizing the goal of $800 million in revenue from software exports. (VNE)
ODA- success story in Viet Nam-Japan relations
Official development assistance (ODA) has always been a success story in the Viet Nam-Japan relations, especially as the two nations are heading forward a long-term strategic relationship.
Japan has over the recent years been the leading ODA donor for Viet Nam, providing more than 1.3 trillion yen (roughly 12 billion USD) in the 1991-2006 period. Japan’s ODA commitment made by late 2007 topped 123 billion yen, a significant rise compared with its commitment of more than 103 billion yen in 2006.
In a recent visit to Viet Nam, the Japanese Finance Minister Fukushiro Nukaga has reiterated that the Japanese government is considering the implementation of three large-scale infrastructure projects in Viet Nam that use Japanese development assistance, including the Hoa Lac high-tech park, the North-South express railway and the North-South Highway.
In the meeting with Prime Minister Nguyen Tan Dung on January 7, the Japanese Minister also made a pledge that Japan would continue its support to help its Southeast Asian partner reduce poverty and develop infrastructure.
"Viet Nam is the only case and the only country that has been enjoying continuously increasing development assistance from Japan,” Japanese Ambassador to Viet Nam Norio Hattori told a Vietnam News Agency as saying.
Of 123 billion yen commitment to Viet Nam in 2007, Japanese ODA loan for Viet Nam increased about 20 percent over 2006.
Ambassador Norio Hattori attributed this ODA increase to the fine relations between Japan and Viet Nam, which were defined as strategic partnership by the prime ministers of the two countries in October 2006.
He also noted that Japan decides to increase its development assistance to Viet Nam as Viet Nam integrates further into the world economy, more resources will be needed for improvement of the national competitiveness and acceleration of Viet Nam’s institutional reforms.
Japan, as well as other international donors, appreciates that Viet Nam is a good ODA recipient, the Japanese Ambassador added, “I would say that we are rather satisfied with the way Viet Nam has used our money,” but a concern over the slow disbursement of the ODA still remains.
Despite increasing its ODA loan to Viet Nam, Japan is slightlly reducing its non-refundable assistance compared with last year. This is not the only case for Viet Nam but a common trend that is happening to other countries in the world, especially the middle-income countries, Ambassador Norio Hattori explained. “Vietnam is approaching the middle-income countries and there are other poorer countries that need more grant assistance than Viet Nam.”
At the same time, he also said Viet Nam now has huge needs for infrastruture projects such as roads, airports, ports and power station, which are best suited for receiving ODA loans as they are capable of generating profits.
Japan’s aid to Viet Nam in the non-profit areas such as health, education and poverty reduction has been effectively benefited to Vietnamese people.
Both Vietnamese Prime Minister Nguyen Tan Dung and President Nguyen Minh Triet have recognised the importance of Japanese assistance in the attainment of Viet Nam’s socio-economic successes over the years. They particularly highlighted Japan’s support in three infrastructure projects that have strategic meaning to the country’s economic development in the future.
President Nguyen Minh Triet and Japan’s newly appointed Prime Minister Yasuo Fukuda agreed on a cooperation project on building up a strategic partnership between the two countries in November 2007, in which the Japanese PM reiterated his support to Viet Nam through continued assistance to help improve Vietnamese people’s living standards, promote economic growth, resolve social issues and those relating to institutional mechanism.
Japan has over the recent years been the leading ODA donor for Viet Nam, providing more than 1.3 trillion yen (roughly 12 billion USD) in the 1991-2006 period. Japan’s ODA commitment made by late 2007 topped 123 billion yen, a significant rise compared with its commitment of more than 103 billion yen in 2006.
In a recent visit to Viet Nam, the Japanese Finance Minister Fukushiro Nukaga has reiterated that the Japanese government is considering the implementation of three large-scale infrastructure projects in Viet Nam that use Japanese development assistance, including the Hoa Lac high-tech park, the North-South express railway and the North-South Highway.
In the meeting with Prime Minister Nguyen Tan Dung on January 7, the Japanese Minister also made a pledge that Japan would continue its support to help its Southeast Asian partner reduce poverty and develop infrastructure.
"Viet Nam is the only case and the only country that has been enjoying continuously increasing development assistance from Japan,” Japanese Ambassador to Viet Nam Norio Hattori told a Vietnam News Agency as saying.
Of 123 billion yen commitment to Viet Nam in 2007, Japanese ODA loan for Viet Nam increased about 20 percent over 2006.
Ambassador Norio Hattori attributed this ODA increase to the fine relations between Japan and Viet Nam, which were defined as strategic partnership by the prime ministers of the two countries in October 2006.
He also noted that Japan decides to increase its development assistance to Viet Nam as Viet Nam integrates further into the world economy, more resources will be needed for improvement of the national competitiveness and acceleration of Viet Nam’s institutional reforms.
Japan, as well as other international donors, appreciates that Viet Nam is a good ODA recipient, the Japanese Ambassador added, “I would say that we are rather satisfied with the way Viet Nam has used our money,” but a concern over the slow disbursement of the ODA still remains.
Despite increasing its ODA loan to Viet Nam, Japan is slightlly reducing its non-refundable assistance compared with last year. This is not the only case for Viet Nam but a common trend that is happening to other countries in the world, especially the middle-income countries, Ambassador Norio Hattori explained. “Vietnam is approaching the middle-income countries and there are other poorer countries that need more grant assistance than Viet Nam.”
At the same time, he also said Viet Nam now has huge needs for infrastruture projects such as roads, airports, ports and power station, which are best suited for receiving ODA loans as they are capable of generating profits.
Japan’s aid to Viet Nam in the non-profit areas such as health, education and poverty reduction has been effectively benefited to Vietnamese people.
Both Vietnamese Prime Minister Nguyen Tan Dung and President Nguyen Minh Triet have recognised the importance of Japanese assistance in the attainment of Viet Nam’s socio-economic successes over the years. They particularly highlighted Japan’s support in three infrastructure projects that have strategic meaning to the country’s economic development in the future.
President Nguyen Minh Triet and Japan’s newly appointed Prime Minister Yasuo Fukuda agreed on a cooperation project on building up a strategic partnership between the two countries in November 2007, in which the Japanese PM reiterated his support to Viet Nam through continued assistance to help improve Vietnamese people’s living standards, promote economic growth, resolve social issues and those relating to institutional mechanism.
Property sector still sizzling
The property market is showing no signs of cooling off despite concerns that a speculative bubble has been built which could prove unsustainable.
Housing prices, particularly in Hanoi and Ho Chi Minh City, are rising sharply but buyers continue to line up in the hope of cashing in on apartment prices that triple the average wage per square metre.
Last week, around 6,000 people entered into a lucky draw for the 580-unit Hoang Anh Riverview in Ho Chi Minh City’s District 2. Buyers backed themselves to purchase apartments starting from $2,200 per square metre
The new development is a stone’s throw away from the Vista which drew hundreds of potential buyers in a similar draw late last year.
Although the prices are a stark contrast with the country’s annual average per capita income of $834, Savills managing director Brett Ashton said it was not uncommon to see buyers vie for a house when the market was hot and there was little supply.
“I do not think it is abnormal,” he said. “Despite all the talk of more projects, the fact is that few developers are really launching sales and building at the moment.”
“Buyers are looking for good quality projects either for owner occupation, investment, and yes, some speculation. It is normal when good quality developments are rare,” Ashton added.
Condominium prices have gone up sharply. HAGL Land initially expected to sell Hoang Anh Riverview for $1,200 a square metre but the developer decided to lift prices as interest rose.
Condominium prices in the southern hub have risen steadily over the last couple of months. The Lancaster sold for $4,500 a square metre in the fourth quarter last year, Avalon for $4,300 and Saigon Residences $3,800 or 20-30 per cent higher than the second quarter. The Vista sold for $1,350 in the second quarter and is now going for $3,200, according to CB Richard Ellis.
Housing prices in Hanoi are also rising by $200 to $400 per sqm over the last month. Happy House Garden in Long Bien district which drew little buyer attention a year ago is now capitalising on strong demand to go to $600 per square metre compared to around $400 two months ago.
Phan Truong Son, general director of Hop Phu Investment and Development Company, said the price increases were because of rising building material prices and housing shortages in the capital city.
Hanoi saw few new projects launched last year while grandiose development such as Ciputra International City and West Westlake were crippled by land compensation problems. In particular, Ciputra has not been able to continue construction of its second phase since the end of 2006 due to local residents protesting compensation plans.
Nguyen Thanh Quang, general director of Dragon Land, the developer of the 64-hectare Dragon City in Ho Chi Minh City, said housing prices were also on the increase because laws now require developers to finish construction of housing foundations before starting sales leading to developers’ higher initial investments.
Dragon Land has yet to start selling but is drawing strong buyer interest as it is located next to the Phu My Hung, a successful township development where a villa can fetch as much as $3,800 a square metre.
Last year saw a surge in real estate investment, particularly into the construction of townships and residential high-rises, which are expected to improve supply this year and next.
Singaporean developer Keppel Land has entered into joint ventures with Tien Phuoc Company for the development of 1,500 apartments in District 2, with Tan Truong for 2,400 apartments in District 7 and An Phu Corporation for 1,940 units in District 2.
Keppel Land is also clearing sites and working on development plan for Saigon Sports City, an integrated township with 3,000 apartments in District 2. The developer claims it is well on the way to building around 25,000 homes in Vietnam.
Another Singaporean developer, CapitaLand, has also set up joint ventures to build 600 apartments in District 7 and 1,200 apartments and 300 villas in District 9.
Korean developers are moving en masse, building such projects as the Mark with 2,040 apartments in District 7 and GS Metro City on 349 hectares in Nha Be district.
Local developers are going on a new height with bigger developments such as the 1,340-apartment Richland Hill and 4,000-apartment Phu Hoang Anh in District 7.
Many of these projects will start sales this year but market observers do not expect housing prices to ease. (Dau Tu Newspaper)
Housing prices, particularly in Hanoi and Ho Chi Minh City, are rising sharply but buyers continue to line up in the hope of cashing in on apartment prices that triple the average wage per square metre.
Last week, around 6,000 people entered into a lucky draw for the 580-unit Hoang Anh Riverview in Ho Chi Minh City’s District 2. Buyers backed themselves to purchase apartments starting from $2,200 per square metre
The new development is a stone’s throw away from the Vista which drew hundreds of potential buyers in a similar draw late last year.
Although the prices are a stark contrast with the country’s annual average per capita income of $834, Savills managing director Brett Ashton said it was not uncommon to see buyers vie for a house when the market was hot and there was little supply.
“I do not think it is abnormal,” he said. “Despite all the talk of more projects, the fact is that few developers are really launching sales and building at the moment.”
“Buyers are looking for good quality projects either for owner occupation, investment, and yes, some speculation. It is normal when good quality developments are rare,” Ashton added.
Condominium prices have gone up sharply. HAGL Land initially expected to sell Hoang Anh Riverview for $1,200 a square metre but the developer decided to lift prices as interest rose.
Condominium prices in the southern hub have risen steadily over the last couple of months. The Lancaster sold for $4,500 a square metre in the fourth quarter last year, Avalon for $4,300 and Saigon Residences $3,800 or 20-30 per cent higher than the second quarter. The Vista sold for $1,350 in the second quarter and is now going for $3,200, according to CB Richard Ellis.
Housing prices in Hanoi are also rising by $200 to $400 per sqm over the last month. Happy House Garden in Long Bien district which drew little buyer attention a year ago is now capitalising on strong demand to go to $600 per square metre compared to around $400 two months ago.
Phan Truong Son, general director of Hop Phu Investment and Development Company, said the price increases were because of rising building material prices and housing shortages in the capital city.
Hanoi saw few new projects launched last year while grandiose development such as Ciputra International City and West Westlake were crippled by land compensation problems. In particular, Ciputra has not been able to continue construction of its second phase since the end of 2006 due to local residents protesting compensation plans.
Nguyen Thanh Quang, general director of Dragon Land, the developer of the 64-hectare Dragon City in Ho Chi Minh City, said housing prices were also on the increase because laws now require developers to finish construction of housing foundations before starting sales leading to developers’ higher initial investments.
Dragon Land has yet to start selling but is drawing strong buyer interest as it is located next to the Phu My Hung, a successful township development where a villa can fetch as much as $3,800 a square metre.
Last year saw a surge in real estate investment, particularly into the construction of townships and residential high-rises, which are expected to improve supply this year and next.
Singaporean developer Keppel Land has entered into joint ventures with Tien Phuoc Company for the development of 1,500 apartments in District 2, with Tan Truong for 2,400 apartments in District 7 and An Phu Corporation for 1,940 units in District 2.
Keppel Land is also clearing sites and working on development plan for Saigon Sports City, an integrated township with 3,000 apartments in District 2. The developer claims it is well on the way to building around 25,000 homes in Vietnam.
Another Singaporean developer, CapitaLand, has also set up joint ventures to build 600 apartments in District 7 and 1,200 apartments and 300 villas in District 9.
Korean developers are moving en masse, building such projects as the Mark with 2,040 apartments in District 7 and GS Metro City on 349 hectares in Nha Be district.
Local developers are going on a new height with bigger developments such as the 1,340-apartment Richland Hill and 4,000-apartment Phu Hoang Anh in District 7.
Many of these projects will start sales this year but market observers do not expect housing prices to ease. (Dau Tu Newspaper)
A post WTO deluge in FDI is forecasted
Economists have predicted that at least $20 billion in foreign direct investment will flow into Vietnam this year as the country opens its market after its World Trade Organization accession.
At the Vietnam Trade and Investment Forum in Hanoi last week, one year after Vietnam entered the global trade body, investors and economists said foreign direct investment (FDI) had jumped and would continue to rise.
Gannon Vietnam managing director Walter Blocker, who is also vice chairman of the Asia-Pacific Council of American Chambers of Commerce, predicted that Vietnam would continue to attract more than $20 billion in FDI in 2008 after the country opens more sectors per WTO commitments.
“WTO accession had spurred confidence for investment in Vietnam because the country had committed to adhere to an international system,” he said.
Vietnam has been serious about implementing commitments by improving the regulatory climate to make its laws conform more to international practices and to WTO regulations. The country has revised about 30 laws and ordinances.
“The government has proven its constructive economic course in the past. We are convinced that this course will be continued and build a strong foundation for future investment and success,” said Metro Group vice president Henry O.E. Birr.
Last year, Vietnam recorded $20.3 billion in FDI, a 69.1 per cent increase against 2006.
Ashok Sud, European Chamber of Commerce executive committee member, said it was an astounding figure that had far exceeded domestic and foreign commentators’ expectations.
Deputy Prime Minister Pham Gia Khiem said WTO accession created more of a driving force for Vietnam to reform its internal legislative system to come more in line with international practices, creating a favourable and equal business environment for all economic sectors.
Before WTO accession, there was much anxiety and doubt about the Vietnam economy’s adaptability to the tremendous changes in the business environment as well as about its ability to deal with international integration. Khiem said that outside partners had not really believed in Vietnam’s determination to fully and seriously implement its integration commitments.
“Our great achievements in economic development over the past year have wiped out all those concerns and doubts,” he said.
However, World Bank lead economist in Vietnam Martin Rama said that the country had to improve its investment environment, particularly in tackling piracy, copyright infringement and trademark violations. It also needs to strengthen public investment processes and allow the private sector to take part in infrastructure investment, he said.
“Longer-term planning is needed for social infrastructure, such as in education, vocational training and health systems since Vietnam will continue to attract labour intensive industries. But it will also begin to attract the higher-quality investment requiring a higher quality workforce with higher wages,” said Blocker. (Dau Tu Newspaper)
At the Vietnam Trade and Investment Forum in Hanoi last week, one year after Vietnam entered the global trade body, investors and economists said foreign direct investment (FDI) had jumped and would continue to rise.
Gannon Vietnam managing director Walter Blocker, who is also vice chairman of the Asia-Pacific Council of American Chambers of Commerce, predicted that Vietnam would continue to attract more than $20 billion in FDI in 2008 after the country opens more sectors per WTO commitments.
“WTO accession had spurred confidence for investment in Vietnam because the country had committed to adhere to an international system,” he said.
Vietnam has been serious about implementing commitments by improving the regulatory climate to make its laws conform more to international practices and to WTO regulations. The country has revised about 30 laws and ordinances.
“The government has proven its constructive economic course in the past. We are convinced that this course will be continued and build a strong foundation for future investment and success,” said Metro Group vice president Henry O.E. Birr.
Last year, Vietnam recorded $20.3 billion in FDI, a 69.1 per cent increase against 2006.
Ashok Sud, European Chamber of Commerce executive committee member, said it was an astounding figure that had far exceeded domestic and foreign commentators’ expectations.
Deputy Prime Minister Pham Gia Khiem said WTO accession created more of a driving force for Vietnam to reform its internal legislative system to come more in line with international practices, creating a favourable and equal business environment for all economic sectors.
Before WTO accession, there was much anxiety and doubt about the Vietnam economy’s adaptability to the tremendous changes in the business environment as well as about its ability to deal with international integration. Khiem said that outside partners had not really believed in Vietnam’s determination to fully and seriously implement its integration commitments.
“Our great achievements in economic development over the past year have wiped out all those concerns and doubts,” he said.
However, World Bank lead economist in Vietnam Martin Rama said that the country had to improve its investment environment, particularly in tackling piracy, copyright infringement and trademark violations. It also needs to strengthen public investment processes and allow the private sector to take part in infrastructure investment, he said.
“Longer-term planning is needed for social infrastructure, such as in education, vocational training and health systems since Vietnam will continue to attract labour intensive industries. But it will also begin to attract the higher-quality investment requiring a higher quality workforce with higher wages,” said Blocker. (Dau Tu Newspaper)
Keidanren commits to boosting Japan-Vietnam ties
President of the Japan Business Federation (Keidanren) Fujio Mitarai has confirmed that Keidanren will do its best to contribute to boosting bilateral ties between Japan and Vietnam.
Mr Fujio made the remark at a recent meeting with Vietnamese Ambassador to Japan Chu Tuan Cap who made a farewell visit at the end of his term of office in Tokyo.
At the meeting, Mr Fujio praised fine developments in Japan-Vietnam relations in the past few years, particularly in economic co-operation.
He expressed his desire that Vietnam and Japan will conclude negotiations as soon as possible for the signing of the Japan-Vietnam Economic Partnership Agreement (EPA), which aims at further enhancing bilateral co-operation in trade and investment.
On the occasion, Mr Fujio thanked Ambassador Chu Tuan Cap for his tireless efforts in promoting relations between the two nations over the past four years. (VNA)
Mr Fujio made the remark at a recent meeting with Vietnamese Ambassador to Japan Chu Tuan Cap who made a farewell visit at the end of his term of office in Tokyo.
At the meeting, Mr Fujio praised fine developments in Japan-Vietnam relations in the past few years, particularly in economic co-operation.
He expressed his desire that Vietnam and Japan will conclude negotiations as soon as possible for the signing of the Japan-Vietnam Economic Partnership Agreement (EPA), which aims at further enhancing bilateral co-operation in trade and investment.
On the occasion, Mr Fujio thanked Ambassador Chu Tuan Cap for his tireless efforts in promoting relations between the two nations over the past four years. (VNA)
Vietnamese entrepreneurs in Russia hold congress
The Association of Vietnamese Entrepreneurs in Russia (VINAENTRASSCO) held its fifth congress in Moscow on January 19.
Delegates to the congress worked out plan for the coming period, which aimed at consolidating the community of Vietnamese entrepreneurs in Russia , making it a bridge to boost economic, tourism, and investment cooperation between Viet Nam and Russia .
The association also aims to support Vietnamese entrepreneurs’ legal interests in the Russian market, encourage its members to abide by the resident country’s laws, and increase investment activities in Viet Nam and Russia .
The congress elected an executive board of 17 members with Tran Dang Chung, CEO of Milton Company, to be the association President.
Delegates to the congress worked out plan for the coming period, which aimed at consolidating the community of Vietnamese entrepreneurs in Russia , making it a bridge to boost economic, tourism, and investment cooperation between Viet Nam and Russia .
The association also aims to support Vietnamese entrepreneurs’ legal interests in the Russian market, encourage its members to abide by the resident country’s laws, and increase investment activities in Viet Nam and Russia .
The congress elected an executive board of 17 members with Tran Dang Chung, CEO of Milton Company, to be the association President.
HCM City hosts construction and security exhibitions
More than 300 domestic and foreign businesses are showcasing their products at the two exhibitions namely the Build AsiaPac Vietnam 2008 and the Security & Safety Vietnam 2008 at the Saigon Exhibition and Cenvention Centre.
On display at more than 200 booths of the Build AsiaPac Vietnam 2008 are latest civil engineering technology and materials, including construction materials and facilities, lighting equipment, paints, maintenance services and water pipe technology.
The Security & Safety Vietnam 2008, the first of its kind in Viet Nam , exhibits danger detected and equipment as well as rescue and property protection facilities.
The two exhibitions were jointly opened on Jan. 20 by the Viet Nam National Trade Fair and Advertising Joint Stock Company (Vinaxad Saigon) and the Conference and Exhibition Management Services Pte Ltd (CEMS) of Singpore.
The three-day exhibitions are expected to welcome more than 10,000 visitors.
On display at more than 200 booths of the Build AsiaPac Vietnam 2008 are latest civil engineering technology and materials, including construction materials and facilities, lighting equipment, paints, maintenance services and water pipe technology.
The Security & Safety Vietnam 2008, the first of its kind in Viet Nam , exhibits danger detected and equipment as well as rescue and property protection facilities.
The two exhibitions were jointly opened on Jan. 20 by the Viet Nam National Trade Fair and Advertising Joint Stock Company (Vinaxad Saigon) and the Conference and Exhibition Management Services Pte Ltd (CEMS) of Singpore.
The three-day exhibitions are expected to welcome more than 10,000 visitors.
Ca Mau seafood company allowed to run business in US
The Ca Mau Seafood Joint Stock Company has been licensed to invest 900,000 USD in setting up an importing and distributing seafood business in the US .
The company, with charter capital of over 100 billion VND, is one of successful seafood companies in southernmost Ca Mau province of Viet Nam.
After the Minh Phu seafood company, it is the Ca Mau’s second seafood business allowed to operate in the US. (VNA)
The company, with charter capital of over 100 billion VND, is one of successful seafood companies in southernmost Ca Mau province of Viet Nam.
After the Minh Phu seafood company, it is the Ca Mau’s second seafood business allowed to operate in the US. (VNA)
More oil struck at Black Lion site
Thang Long Joint Operating Co discovered a new oil field at the Block 15-2/01, Hai Su Den (Black Lion) site, some 60km offshore southern Binh Thuan and Ba Ria - Vung Tau provinces.
The volume of the new oil field’s reserve has not yet been reported, according to Thang Long JOC.
Thang Long JOC, established in 2005, was a joint venture between PetroVietnam Exploration Production Corporation (PVEP) owning 40 per cent and Talisman Energy Co of Canada, holding the remaining 60 per cent.
The joint venture’s officials declined to elaborate on the discovery.
Thang Long JOC has drilled three wells at Hai Su Trang (White Merlion) Oil Field with a total output of 7.57 million tonnes of oil.
The volume of the new oil field’s reserve has not yet been reported, according to Thang Long JOC.
Thang Long JOC, established in 2005, was a joint venture between PetroVietnam Exploration Production Corporation (PVEP) owning 40 per cent and Talisman Energy Co of Canada, holding the remaining 60 per cent.
The joint venture’s officials declined to elaborate on the discovery.
Thang Long JOC has drilled three wells at Hai Su Trang (White Merlion) Oil Field with a total output of 7.57 million tonnes of oil.
Khanh Hoa lands $230 million beach resort
T&M Van Phong Investment and Tourist Joint Stock Co will build a beach resort and entertainment complex at a cost of VND3.72 trillion (US$230 million) in the Van Phong Economic Zone in the southern province of Khanh Hoa, pursuant to an investment licence granted by the zone’s management board on Monday.
The Hon Ngang-Bai Cat Tham project, on an area of 295ha of land and 160ha of water in Van Ninh District’s Van Thanh commune, would become the largest tourism development in the economic zone, said an official from the provincial Department of Planning and Investment.
"When completed, the complex is projected to attract 300,000 tourists a year," said T&M Van Phong Co director Nguyen Chi Thanh. "All technology and services in the complex will be modern but close to nature so that visitors can feel the natural atmosphere when coming to the complex."
The project would be built in three phases. During the first phase of 2008-10, a five-star ocean and mountain resort would be built with 250 rooms. The first phase would also include technical infrastructure, wharf and sea port. The cost for this first phase was estimated to be VND580 billion ($36 million).
Four other resort areas with 500 rooms were planned for the second phase through 2015, along with the Hon Tre entertainment complex. Total cost for this phase was estimated at more than VND1.2 trillion ($75 million).
The last phase was planned fo 2015-18 and would include construction of 150,000sq.m of leasable commercial space at a cost of nearly VND2 trillion.
"Designers and consultants for the project are experienced ones from international and domestic companies. We are now considering an international consultant for our specific design," said Thanh.
T&M Van Phong Co is a subsidiary of T&M Group. The company expects to employ local labourers in the construction of the project, Thanh said, and the finished project would provide long-term employment in the area. (VNS)
The Hon Ngang-Bai Cat Tham project, on an area of 295ha of land and 160ha of water in Van Ninh District’s Van Thanh commune, would become the largest tourism development in the economic zone, said an official from the provincial Department of Planning and Investment.
"When completed, the complex is projected to attract 300,000 tourists a year," said T&M Van Phong Co director Nguyen Chi Thanh. "All technology and services in the complex will be modern but close to nature so that visitors can feel the natural atmosphere when coming to the complex."
The project would be built in three phases. During the first phase of 2008-10, a five-star ocean and mountain resort would be built with 250 rooms. The first phase would also include technical infrastructure, wharf and sea port. The cost for this first phase was estimated to be VND580 billion ($36 million).
Four other resort areas with 500 rooms were planned for the second phase through 2015, along with the Hon Tre entertainment complex. Total cost for this phase was estimated at more than VND1.2 trillion ($75 million).
The last phase was planned fo 2015-18 and would include construction of 150,000sq.m of leasable commercial space at a cost of nearly VND2 trillion.
"Designers and consultants for the project are experienced ones from international and domestic companies. We are now considering an international consultant for our specific design," said Thanh.
T&M Van Phong Co is a subsidiary of T&M Group. The company expects to employ local labourers in the construction of the project, Thanh said, and the finished project would provide long-term employment in the area. (VNS)
Companies bond for improved services
German-based TUVRheinland Viet Nam have signed a co-operation agreement with Philippines-based ECC International (ECCI) to affirm their long term commitment to provide further technical assistance to the information and communications technology industry in Viet Nam.
The short term goals of the parties will be to promote a range of products and services provided by ECCI and TUVRheinland Group to the ICT industry necessary for effective operation in the global market.
The longer term goals will assist companies develop themselves to boost economic growth and to convert the IT industry into one of the most important sectors in the country.
Back in 2003, the two companies had jointly conducted several standards based training and consulting assignments under the Public Private Partnership type of projects funded by the German NGOs in Viet Nam. One of those initiatives was the ICT Funding Project to increase the international competitiveness of Viet Nam’s ICT industry.
Eleven Vietnamese companies were selected to receive funding to set up a Comprehensive Quality Management Programme and a Comprehensive Information Security Programme.
TUVRheinland Group is an international business solutions provider for safety development and quality improvement in the interaction between man, technology and the environment.
ECCI is a knowledge-centred organisation for acquisition, development, packaging and dissemination. Its expertise is in productivity and quality, IT, environment health and safety, standards, human resources and organisational development. (VNS)
The short term goals of the parties will be to promote a range of products and services provided by ECCI and TUVRheinland Group to the ICT industry necessary for effective operation in the global market.
The longer term goals will assist companies develop themselves to boost economic growth and to convert the IT industry into one of the most important sectors in the country.
Back in 2003, the two companies had jointly conducted several standards based training and consulting assignments under the Public Private Partnership type of projects funded by the German NGOs in Viet Nam. One of those initiatives was the ICT Funding Project to increase the international competitiveness of Viet Nam’s ICT industry.
Eleven Vietnamese companies were selected to receive funding to set up a Comprehensive Quality Management Programme and a Comprehensive Information Security Programme.
TUVRheinland Group is an international business solutions provider for safety development and quality improvement in the interaction between man, technology and the environment.
ECCI is a knowledge-centred organisation for acquisition, development, packaging and dissemination. Its expertise is in productivity and quality, IT, environment health and safety, standards, human resources and organisational development. (VNS)
FPT provides software to EVERON
FPT Information System Company has signed a US$300,000 contract to provide business administrative software to the wholly foreign-owned Everpia Viet Nam Company (EVERON) from South Korea.
Under the contract, FPT Information System, a subsidiary of the Financing and Promoting Technology Corporation, will help EVERON improve its management capacity and build a long-term strategy for the future.
The contract expires in August.
Saturday, February 21, 2009
Hai Phong to upgrade airport
Cat Bi International Airport should be able to receive up to 2 million travellers and 17,000 million tonnes of cargo a year by 2015, according to new plans announced on Tuesday.
Vu Duy Mat, Head of Office of Cat Bi International Airport, confirmed yesterday with Viet Nam News that the airport is ready to launch the upgrade soon.
"We have prepared necessary procedures and resources to begin the upgrade in 2008," Mat said.
Decision 1857/QD – TTg, ratified by Prime Minister Nguyen Tan Dung, approved an investment of more than VND1,700 billion (US$106 million) for the upgrade, ongoing to 2015, with work continuing to 2025. The upgrade will be done in three phases, with an investment of VND960.8 billion ($60 million) from now until 2010, VND291.9 billion ($18 million) from 2010 – 2015 and VND451.9 billion ($28 million) until 2025.
Trinh Quang Su, Chairman of Hai Phong People’s Committee, highlighted the significance of the upgrades.
"The investment into Cat Bi international airport will open new opportunities for the city’s economic development," Su said.
"The upgraded airport, together with deep waterports in Lach Huyen District and Ha Noi - Hai Phong highway will create favourable conditions for tourism and economic development of not only Hai Phong but neighbouring provinces as well," Mat said.
The upgrade will bring the airport up to 4E international standards of the International Civil Aviation Organisation and first level military airport standards, with the completed airport covering a total area of nearly 500 ha. From now to 2015, the airport’s landing and departing runways will be expanded to 3,050 by 50 metres, enough to receive Airbus A321 planes of around 180 seats and planes similar in size to the Boeing B767. The current landing space will be upgraded and eight parking locations will also be constructed.
The visiting area will be able to receive up to 800 visitors an hour while the new cargo station will have the capacity to handle 17,000 tonnes a year.
Plans for the visiting area include a commerce and service space covering 2,000sq.m in 2015 and expanding to 4,000sq.m in 2025. A food preparation area is also planned at 760sq.m by 2015, growing to 3,000sq.m in 2025.
By 2025, the airport will grow to handle B747 – 400 and B777 planes (of around 300 seats) or equivalent. During this phase the visiting station will be expanded to handle up to 1,400 visitors during peak hours while the cargo station should have a capacity of 82,000 tonnes a year.
Currently, Cat Bi International Airport handles three flights to HCM City per day. The Hai Phong - Macau flight, cancelled in 2007, should resume soon in 2008, according to Mat.
Last year, 1,142 planes passed through Cat Bi International Airport carrying 184,000 passengers, according to Vu Minh Khue, the airport’s director. Although the number of departing planes decreased over 2006 because of the cancelled Macau – Hai Phong flight, the number of passengers increased annually.
The occupancy rate of planes going through Hai Phong reached 87 per cent in 2007, an increase from 78 per cent in 2006.
Vu Duy Mat, Head of Office of Cat Bi International Airport, confirmed yesterday with Viet Nam News that the airport is ready to launch the upgrade soon.
"We have prepared necessary procedures and resources to begin the upgrade in 2008," Mat said.
Decision 1857/QD – TTg, ratified by Prime Minister Nguyen Tan Dung, approved an investment of more than VND1,700 billion (US$106 million) for the upgrade, ongoing to 2015, with work continuing to 2025. The upgrade will be done in three phases, with an investment of VND960.8 billion ($60 million) from now until 2010, VND291.9 billion ($18 million) from 2010 – 2015 and VND451.9 billion ($28 million) until 2025.
Trinh Quang Su, Chairman of Hai Phong People’s Committee, highlighted the significance of the upgrades.
"The investment into Cat Bi international airport will open new opportunities for the city’s economic development," Su said.
"The upgraded airport, together with deep waterports in Lach Huyen District and Ha Noi - Hai Phong highway will create favourable conditions for tourism and economic development of not only Hai Phong but neighbouring provinces as well," Mat said.
The upgrade will bring the airport up to 4E international standards of the International Civil Aviation Organisation and first level military airport standards, with the completed airport covering a total area of nearly 500 ha. From now to 2015, the airport’s landing and departing runways will be expanded to 3,050 by 50 metres, enough to receive Airbus A321 planes of around 180 seats and planes similar in size to the Boeing B767. The current landing space will be upgraded and eight parking locations will also be constructed.
The visiting area will be able to receive up to 800 visitors an hour while the new cargo station will have the capacity to handle 17,000 tonnes a year.
Plans for the visiting area include a commerce and service space covering 2,000sq.m in 2015 and expanding to 4,000sq.m in 2025. A food preparation area is also planned at 760sq.m by 2015, growing to 3,000sq.m in 2025.
By 2025, the airport will grow to handle B747 – 400 and B777 planes (of around 300 seats) or equivalent. During this phase the visiting station will be expanded to handle up to 1,400 visitors during peak hours while the cargo station should have a capacity of 82,000 tonnes a year.
Currently, Cat Bi International Airport handles three flights to HCM City per day. The Hai Phong - Macau flight, cancelled in 2007, should resume soon in 2008, according to Mat.
Last year, 1,142 planes passed through Cat Bi International Airport carrying 184,000 passengers, according to Vu Minh Khue, the airport’s director. Although the number of departing planes decreased over 2006 because of the cancelled Macau – Hai Phong flight, the number of passengers increased annually.
The occupancy rate of planes going through Hai Phong reached 87 per cent in 2007, an increase from 78 per cent in 2006.
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