Business in brief 05 April 2013
Representatives from about 30 Vietnamese businesses discussed how to work together to continue promoting Vietnamese products in Cambodia at a seminar in Phnom Penh on April 4. The seminar, co-organized by the Ho Chi Minh City Investment and Trade Promotion Centre and the Bank for Investment and Development of Cambodia, is part of the Vietnam-Cambodia trade and service exhibition (HCM City Expo 2013) that opened in Phnom Penh on April 3. Addressing the event, Vice Chairwoman of the HCM City People’s Committee Nguyen Thi Hong attributed the development of businesses from Vietnam and HCM City in particular to the effective support of Vietnamese banks in Cambodia. Five Vietnamese commercial banks have opened branches in Cambodia, which are funding most of the key projects in the country, including the 27 million USD Cho Ray-Phnom Penh Hospital, a fertilizer factory worth 62 million USD, and an 80 million USD electricity-sugar-ethanol factory. (VNA)
Ho Chi Minh City’s tourism authority has projected an additional supply of 27,000 hotel rooms by 2020 as part of its master plan. Of the proposed new supply, 6,700 rooms would come from 3-5 star projects, the Department of Culture, Sports, and Tourism said in a draft plan. It plans to submit the final plan to the city’s People Committee this quarter. The city currently has 40,900 hotel rooms, of which 27 percent are 3-5 star units. The annual growth of international visitors is 10 percent, a bit higher than the growth pace of domestic tourists. Over 1 million overseas visitors came to the city last quarter, up 8 percent year-on-year. HCMC earned VND20.6 trillion from tourism during the period, a 20 percent increase compared to the same period last year.
Asian Coast Development (Canada) Ltd (ACDL) yesterday announced the formal approval by the Vietnamese government of all of the company’s requested amendments to its investment certificate. ACDL, through its wholly-owned subsidiary Ho Tram Project Company Ltd, is the developer of the Ho Tram Strip, a group of integrated resorts to be located in Ho Tram, in Vietnam. It is believed that with the investment certificate in hand, ACDL will now be able to soon open the first phase of its Ho Tram project, which was recently completed, including the gaming operations. ACDL is currently constructing the second tower of the first resort in Ho Tram. ACDL is still looking for a partner to operate its first resort, after last month, U.S.-based MGM Resorts International said it was pulling out of a deal to provide resort branding and management to the first phase of the Ho Tram Strip.
The second gold auction held by the State Bank of Vietnam (SBV) on April 4 ended in success with 25,700 of the 26,000 taels of gold bullion sold. Twenty out of 22 registered bidders bought gold bars at the bidding price ranging from VND43.23 million to VND43.37 million per tael. The second auction took place after domestic gold fell sharply by VND400,000 per tael, while the difference between the domestic and global prices was about VND4.3 million per tael. This was part of the SVB’s efforts to increase the supply of gold bar and stabilize the domestic gold market. The first of SBV’s gold bullion auctions on March 28 was less successful with only 2,000 of 26,000 taels of gold sold, at VND43.81 million per tael. The bank announced that it will continue to hold gold auctions in April to increase the supply of gold in the market. The next auction is expected to be held on April 5. Another further three auctions may be organized in the next week. (VNA)
Prospects for Vietnam’s agricultural sector in 2013 were discussed at a seminar in Hanoi on April 4, attended by representatives from ten institutions which specialize in agricultural development and economic forecasting. The event was co-organized by the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) and the National Agricultural Policy Centre. Participants said that 2013 marks five years since Vietnam joined the World Trade Organization (WTO) and fulfilled its commitments with the opening of market and tax reductions on numerous products, such as processed farm produce and foodstuffs. At the same time, agricultural exporters have had to face strict quality controls, new trade conditions, and fluctuations on the world market which have all had a strong impact on agricultural production. The seminar offered an opportunity for those who are responsible for agricultural and rural development to have access to policy researchers, scientists and agricultural businesses. (VOV)
Vietnam Air Service Company (VASCO) announced that it has resumed the air route between the Mekong Delta city of Can Tho and Con Dao Island. From April 1 this year, two flights a week (every Friday and Sunday) are serving the route. VASO will increase this to four flights per week (Monday, Wednesday, Friday, and Sunday) from May 1, as the number of tourists visiting Con Dao Island is expected to see a sharp increase during the summer holidays. The air route was first launched on June 1, 2011. However, it was suspended in January and March this year due to low demand. VASCO is operating 24 flights between Ho Chi Minh City and Con Dao a week on a 65-seat aircraft. Vietnam Airlines and Air Mekong operate air routes from Hanoi and Ho Chi Minh City to Con Dao. One of Vietnam’s tourist hot spots and described as a paradise in many international travel magazines, the pristine nature of Con Dao appeals to visitors, with beautiful beaches and pure, blue water. Apart from its seaside attractions, Con Dao has a national park with rich flora and fauna. It is home to dugongs, dolphins and sea turtles, which are under threat of extinction. (VNA)
Vietnam will become a new holiday destination for Latin American when Luxury Travel will kick off cooperation with Uruguay tour operator to promote high-end Vietnam tourism products in Brazil. Hanoi–based Luxury Travel Ltd. has announced joint efforts with a Uruguayan premium tour operator, Lameco Viajes, to promote luxury travel products at WTM Latin America in Sao Paulo, Brazil from 23 to 25 April 2013. Vietnam now has world class hotels and resorts, beaches and cuisine, in addition to its natural beauty, rich history and traditional culture. Travellers from Latin America travelling to Vietnam are looking for a more authentic experience and seek to have a deeper understanding of the country’s culture, food, history and everyday life. While India and Thailand are geared more toward mass market tourism, Vietnam is a destination that is attractive to a more selective class of travellers. Vietnam is becoming more and more recognized as a safe and favored destination for high end tourists from long haul destinations. (VIR)
DongA Bank has been awarded by Bank of New York Mellon (BNY Mellon) an Excellence Award for 2012 for Straight Through Processing (STP), according to DongA Bank’s website. The STP Award, granted every year by BNY Mellon, acknowledges outstanding performance with respect to payment processing. Last year, STP between the two banks reached more than 95 percent of total payments. Along with DongA Bank, the Vietnam Prosperity Commercial Bank (VPBank) also received the STP Award from the BNY Mellon last month. The Bank of New York Mellon Corporation is an American multinational banking and financial services corporation formed on July 1, 2007 as result of the merger of The Bank of New York and Mellon Financial Corporation. It is the oldest banking corporation in the United States, tracing its origins to the establishment of the Bank of New York in 1784 by Alexander Hamilton.
