Business in brief 02 Nov 2011
On October 31, in Japan, Vietnam will sign three notes whereby Japan will provide Vietnam some 92.6 billion yen (US$1.22 billion) worth of ODA under the first phase of the fiscal year 2011, said Nguyen Xuan Tien, deputy head of Foreign Economic Relations Department (MoPI). Under which, the first note will spare some 21 billion yen for infrastructure development project in Hai Phong port (Lach Huyen port). The second one is for three projects to build North-South highway crossing Ben Luc-Long Thanh (14 billion yen) and use earth observation satellite for disaster prevention and climate change (Vietnam Space Centre-7.2 billion yen) and Nghi Son thermo power plant (40.33 billion yen). The third note is for support program to cope with climate change (10 billion yen). Tien added MoPI is in talks with Japan about projects under the second phase of the fiscal year 2011.
The Vietnam Association of Seafood Exporters and Producers (VASEP) has predicted that Vietnam’s earnings from seafood exports would drop to US$5.7 billion this year, which is more than US$500 million lower than its projected target. Truong Dinh Hoe, Secretary General of VASEP, explained that the turnover from seafood exports would follow a downward trend as from October. The set target for US$6.2 billion earnings from seafood exports was based on an average 20 percent increase in selling prices, especially for whiteleg shrimp which has already fetched about US$800 million so far this year. Hoe added that floods in Thailand might give a boost to Vietnam’s whiteleg exports in late 2011 and early 2012.
The trade turnover between Vietnam and Brazil was estimated at US$1.06 billion in the first nine months of this year, up 61.2 percent over the same period last year. According to the recent statistics released by the Brazilian Ministry of Development, Industry and Foreign Trade, Vietnam’s exports to Brazil reached US$485 million, while its imports from the South American country stayed at US$574 million. The two-way trade turnover is expected to rise to US$1.5 billion by the end of 2011 and to US$4 billion in the next five years. Among Vietnamese exports footwear make up 30 percent, computers and electronics (13 percent), seafood (12 percent), garment and textiles (8 percent), machines and transport vehicles (5 percent), and rubber (5 percent). Vietnamese imports include animal feeds, tobacco materials, steel, and timber products.
Vietnam’s exports to the Middle East are likely to reach approximately US$2.4 billion by the end of the year, up 69 percent over last year. They may reach US$5 billion in 2015, the department said. Ly Quoc Hung, head of the department attributed the export growth to Vietnamese firms’ efforts to promote product advertising at trade fairs and participate in business conferences, ain updated market information, determine customer demand and seek new trade partners from the Middle Eastern market. He suggested the firms deepen their understanding of business customs in the Middle East. The department plans to organize online business meetings for Vietnamese firms in six Middle East countries early next year, he said.
A trade fair opened in Cambodia’s Phnom Penh capital on November 1, attracting more than 150 Vietnamese businesses to showcase their products on nearly 300 stands. On display at the Vietnam Trade Fair ’11 are farm products, technologies, electronic and electrical equipment, garments, building materials, pharmaceuticals and fine art and handicraft articles. The organization of such trade fairs has contributed to increasing trade and investment between the two countries, said Keo Soknay, Secretary of State of the Cambodian Ministry of Commerce, at the opening ceremony. According to the Secretary of State, two-way trade value between Cambodia and Vietnam reached nearly US$1.83 billion in 2010, a year on year rise of 35 percent. The trade figure rose to US$2.07 billion in the period between January-September, 2011. The fair will last through November 5.
The 3rd Annual Real Estate Seminar will be held in Ho Chi Minh City on November 23 under the theme “Credit Crunch: Where does the Vietnam Real Estate Market go from here?” More than 200 domestic and international investors, bankers and housing developers are expected to take part in the Real Estate Market Intel Vietnam 2011, which is co-organized by the DFDL Mekong Company, CB Richard Ellis (CBRE) Vietnam and Standard Chartered Bank. The seminar will look at an overview of the local real estate market, and point out key risks in real estate lending in Vietnam. It will discuss how to attract investment from foreign investors, including those from the US. Participants will also have the chance to listen to presentations by leading experts in the field including Marc Townsend, Managing Director of CBRE Vietnam.
In the first ten months of this year, the total number of new phone subscribers is estimated to have reached 9.3 million, down 17.2% from the same period last year, the General Statistics Office (GSO) reported on Oct. 31. Under which, the total number of fixed phone subscribers reached 46,100, down 76.2% on year and mobile phone users at 9.3 million, down 16.1% y-o-y. Totally, the country’s total number of phone subscribers till the end of October was estimated at 130.7 million, rising 3.9% against the same period last year, of which, total number of mobile phone users saw a 7-fold increase on year with 115.2 million users while fixed phone users at 15.5 million. According to GSO, the total net revenue from post and telecommunications in Jan-Oct was estimated to reach 130.9 trillion dong, rising 23.7% year on year. The total number of Internet users till the end of October 2011 reached 32.1 million, up 24.4% on year.
Formosa Group has recently held a meeting with Vietnam National Oil and Gas Group (PVN) and Ministry of Industry and Trade to express wishes for joining the investment project of the third oil refinery in Long Son, Ba Ria-Vung Tau province. The third oil refinery has designed capacity of 10 million tons of crude oil per year. PetroVietnam estimated to spend $8 billion of investment capital in this project. The group has also worked out plan for inviting other foreign investors to participate in conducting this project with holdings ratio of up to 71 percent. Formosa Group has been considered the largest foreign investor in Vietnam. At present, the group has joined the projects of Steel Complex and Son Duong deep-water port with total investment capital for the first phase of $8.9 billion.
A wide range of Vietnamese products are now on display at the 29th International Trade Fair of Havana (FIHAV 2011), which opened in Havana, Cuba, on October 31. Fifteen Vietnamese businesses are joining more than 1,500 enterprises from 57 countries and territories around the world to showcase food, garments and textiles, electronics, construction materials, household utensils and handicraft products. This year’s fair, which will last until November 5, features more than 350 Cuban companies operating mostly in the fields of health care, food processing, electronics, civil engineering, construction and services.
SAP Asia Vietnam has announced it will establish a new office in HCM City and a SAP Research Centre Vietnam. Director General of SAP Asia Vietnam, Srinivas Adimulam, emphasized that Vietnam is one of the most dynamic markets in South East Asia. The opening of the new office will boost SAP’s development strategies in the country, affirming its long-term commitments to investing in the Vietnamese information technology (IT) market to fully tap its potential. SAP also unveiled a plan to establish a SAP Research Centre in Vietnam - the 15th of its kind in the world and the first in South East Asia.
Prudential Vietnam Assurance and Citibank Vietnam announced their partnership in a ceremony held in Ha Noi, yesterday. Prudential insurance packages will now be available at Citibank branches.
Nearly 15 Vietnamese enterprises are showcasing their products, including food, textiles, electrical and household appliances and handicrafts at the International Fair of Havana that opened on Monday in Cuba. The six-day fair has attracted 350 local businesses and more than 1,500 enterprises from 57 countries worldwide. The fair will have the largest number of participants in a decade. It offers foreign partners a chance to get an insight into the Cuban market as well as investment and co-operation opportunities, the Cuban Ministry of Foreign Trade and Investment said.
G7 instant coffee of the Trung Nguyen Coffee Group is being sold at Costco super market chains in the US and E-Mart outlets in the Republic of Korea. Trung Nguyen will deliver 100 containers of G7 products to Costco and 15 containers to E-Mart from now till the end of this year. To enter Costco and E-Mart, G7 had to pass strict examinations by international verification agencies to ensure that the product met more than 20 requirements, including factory policies, equipment, processing technology, materials, preservation, transport and labor safety.
The Tay Nguyen (Central Highlands) province of Dak Lak reported on Monday that the province’s export turnover in the first 10 months of this year reached US$620 million, ranking first in the central highlands region. It was a 28.9 per cent year-on-year increase, gaining nearly 96 per cent of the annual target. The major exporting items were coffee, pepper, rubber, cashew, tapioca and honey.
The Bank for Investment and Development of Vietnam (BIDV) has signed bilateral co-operative agreements with North Asia Commercial Bank (ACB) and the Global Petroleum Commercial Bank (GP Bank). Under the agreements, BIDV has pledged to lend ACB VND3 trillion (US$144 million) and GP Bank VND5 trillion ($240 million) to improve their liquidity. They will also share experiences on risk prevention, investment and information on exchange and interest rates.
The number of new phone subscribers is estimated by the Vietnam General Statistics Office (GSO) to reach 9.3 million in the first 10 months, a year-on-year decrease of 17.2 per cent. The number includes 46,100 fixed line phone subscribers, reduced by 76.2 per cent and 9.3 million mobile phone subscribers, decreased by 16.1 per cent. By late October, the country’s total phone subscribers reached 130.7 million, a 3.9 per cent year-on-year increase.
The State Bank of Vietnam issued Document No 8402/NHNN-QLNH on Thursday, which would require forex-licensed credit institutions and foreign bank branches to report and register their demands for the purchase of foreign currency. The State Bank would monitor the demand for foreign currency in order to produce better forecasts.
Manila Water Co. is exploring business ventures in Vietnam, the company said in a statement to the stock exchange today. The unit of Ayala Corp. confirmed a Philippine Daily Inquirer report, which quoted Manila Water President Gerardo Ablaza as saying that the company “continuously explores possible business opportunities” outside its concession area.
Pöyry’s Energy Business Group has won an engineering consultancy services assignment for the Mong Duong 1 coal fired power plant project stage 2 in Vietnam for Vietnam Electricity. The value of the assignment is EUR 8.0 million, and the project will be included in Pöyry’s fourth quarter order stock. The plant will have a net capacity of 1,000 MW with two power generating units. Pöyry’s comprehensive assignment includes engineering design review, construction supervision, environmental monitoring, and monitoring of the resettlement plan implementation. Pöyry will also assist during the warranty period, transfer know-how, and provide training activities. The duration of these services is 71 months.
Vietnam Administration of Tourism has asked all domestic travel agencies to suspend travel itineraries of Vietnamese tour groups to Thailand until floodwaters begin to recede in the country. Vietnamese tourists in Bangkok can contact the Vietnamese Embassy on phone number 0066 818 460 571 or email tamphamhung@yahoo.com for any information and support. Earlier, several travel agencies in Vietnam had suspended package tours to Bangkok although the Tourism Authority of Thailand insisted that the city was safe for tourists. Two months of constant flooding has inundated 58 of the 77 Thai provinces, with 28 being severely affected, and the livelihood of millions of people put on hold, according to news reports.
Cho Ray Hospital in Ho Chi Minh City, Vietnam and Mita Hospital in Tokyo, Japan will now coordinate to provide digital diagnosis of patients from November 1. The entire process of transferring electronic data will take only a few minutes. Disease samples will be sent electronically by the respective hospitals and medics from both hospitals will be able to exchange diagnostic opinions on how to treat a disease. Within the last three days, medics from the Anatomy Division of Cho Ray Hospital and their Japanese counterparts have diagnosed 40 patients including 20 Japanese and 20 Vietnamese citizens. Vietnamese doctors gave the same diagnosis for most of the cases as their Japanese counterparts. This proves that the Vietnamese doctors were equally skilled in providing better treatment for patients.
Dow Jones quoted the government’s General Statistics Office said Vietnam produced 3.913 million tons of coal in October up by 1.3%YoY. The GSO said in a statement coal output rose 35.6% compared with September. In the January to October period, the country produced 35.772 million tons of coal up by 2.6%. The GSO said electricity output in October likely rose 9.0%YoY to 8.6 billion kilowatt-hours while in September Vietnam produced 8.8 billion kwh. It said Vietnam produced 83.4 billion kwh in the first ten months of the year, up 9.7%. Based on estimates the GSO usually issues coal and electricity figures before the end of the reporting period.
