Business in brief 10 Dec 2012
The 2012 Consultative Group (CG) Meeting for Vietnam officially kicked off in Hanoi on December 10, with a view to creating firm foundation for sustainable growth. Addressing the opening ceremony, Minister of Planning and Investment Bui Quang Vinh affirmed that the Government is speeding up the disbursement process and increase the efficiency of official assistance development (ODA) for national development. Country Director of the World Bank (WB) in Vietnam, Victoria Kwawa spoke highly of Vietnam’s macro-economic achievements over the years. However, she said, the country’s competitiveness remains low, resulting in modest economic growth. It requires stronger commitments from the Government to consolidate people’s trust and get the country out of the middle-income group. The three-day CG meeting will also hear an important speech by Prime Minister Nguyen Tan Dung and other keynote speeches by representatives of international donors and civil society organizations.
The Japanese Government has committed to grant US$2.6 billion in official development assistance (ODA) to Vietnam in 2013, nearly doubling last year’s figure (US$1.4 billion). The announcement was made by Japanese Ambassador to Vietnam, Tanizaki Yasuaki, at the three-day CG meeting which opened in Hanoi on December 10. He highly valued Vietnam’s macroeconomic policies to ensure sustainable growth through its 10-year socio-economic development strategy and five-year socio-economic development plan. He suggested Vietnam implement specific measures on economic restructuring, with a focus on building a healthy financial system, settling bad debts and rearranging State-owned enterprises (SOEs). Earlier on December 7, Prime Minister Yoshihiko Noda stated that Japan will maintain ODA funding for Vietnam’s socio-economic development projects while receiving Vietnamese National Assembly Chairman Nguyen Sinh Hung.
Vietnam Airlines will purchase an A321 aircraft from the French manufacturer Airbus with a syndicated loan from six Taiwanese banks. A ten year fully funded contract was signed by Vietnam Airlines and Taiwan-based Cathay United Bank (CUB), which has arranged the loan with five other banks. This is the first large syndicated loan arranged by a Taiwanese bank for Vietnam’s state-owned enterprises, marking a turning point in Taiwanese banks’ operations in Southeast Asia. The Airbus A321 will be delivered this month. Vietnam Airlines signed a purchase agreement for the delivery of 26 Airbus A321s between 2011 and 2012. The national airline operates 76 aircraft across 85 domestic and international routes, making more than 300 flights every day. It aims to expand its fleet to 115 aircraft by 2015 and 170 by 2020.
Vietnam is expected to join the world’s top 10 most competitive manufacturing nations in the next five years, according to the 2013 global manufacturing competitiveness index (GMCI) report. Vietnam is ranking 10th in the GMCI, an eight-place leap from its current position. Brazil also makes a big jump, from eighth to third, and India jumps from fourth to second place. China once again stands as the most competitive manufacturing nation in the world - both today, and five years from now. The report predicts that many advantages are tilting toward Asia, the continent where 10 of the 15 most competitive nations within the decade are located. The report seeks to determine how CEOs view the competitiveness of the manufacturing industry in different countries around the world. A global CEO survey, which generated responses from 552 CEOs and senior executives, offers perspectives on the most important factors that drive the manufacturing industry’s competitiveness.
More than 15,460 small and medium-sized enterprises (SMEs) have gone bankrupt since the beginning of 2012, according to the Ministry of Industry and Trade’s (MoIT) latest statistics. In an interview granted to a VOV reporter, Dr. Cao Sy Kiem,Chairman of the Vietnam SMEs Association, said that SMEs can only ultimately blame devolvement on themselves. To prevent bankruptcy, they must seize every available opportunity to alleviate their difficulties and not only rely on receiving State subsidies. Most SMEs lack adequate capital, management skills, and technology. Their inventory levels continue to increase as the global economic downturn drags on. Dr. Kiem said SMEs can expect some relief in 2013 when the Government makes their structure and operation a top priority.
Vietnam and Argentina discussed mutual recognition of their authorized agencies on food safety and the list of approved exporters during the former’s recent visit to Buenos Aires. NAFIQAD delegates held working sessions with the National Food Safety and Quality Service of Argentina (SENASA) to inquire into its management mechanisms for food safety, food quality inspection, and food safety certification required by exporters targeting the Argentinean market. They also made fact-finding tours of a number of breeding farms, aquaculture facilities, and animal slaughtering and processing units. According to the SENASA’s statistics, in 2011 Argentina earned US$581 million from agricultural exports to Vietnam. The primary exported commodity was soya beans. Vietnam’s export revenue from the Argentinean market was estimated at US$3.3 million, a year-on-year increase of 117 percent.
Hitachi Asia Ltd Executive Director Yukio Toyoshima has said Vietnam is an increasingly important market in Hitachi’s globalization plan. He made the remarks at a Hitachi Christmas Light-Up ceremony recently held in Ho Chi Minh City. Toyoshima said Hitachi will focus on increasing investment in Vietnamese energy, urban transport, water treatment, and elevator manufacturing. It currently operates in six Asian countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The group’s main business interests include information technology, energy and industry, digital communication, and international purchase transactions. The Hitachi Christmas Light-Up program underway in HCM City offers locals and tourists three weeks of entertainment activities and art performances. The program will last through to Jan. 1, 2013.
A ground-breaking ceremony for Duyen Hai 3 Terminal Power Plant, a key project of the National Power Development Master Plan VII, was held in Tra Vinh province on December 8. The coal-fired power plant, to be built on an area of 879ha, has two turbine generators with a total design capacity of 1,244MW. Once completed, it is expected to generate 7.8 billion kWh annually. The project has total investment of VND28.5 trillion, of which 85 percent comes from loans and the remainder is sourced from EVN. The first generator is scheduled to operate commercially in 46 months, and the second generator in 50 months.
The VietGAP Tien Phu firm, based in the Mekong Delta province of Ben Tre, has signed US market export contracts for trading 20 tons of rambutan during December. More than six tons have already been shipped to the US at a price 20 percent higher than that of the domestic market. The Mekong Delta rambutan was inspected for quality and safety, successfully securing the export license codes required to enter the US market. VietGAP Tien Phu is expanding its current 1,500 hectare planting area in order to fulfill its signed US contracts. The firm is increasing its rambutan purchases in other southern provinces like Tra Vinh, Vinh Long, and Binh Phuoc. In 2011, VietGAP Tien Phu exported 60 tons of rambutan to overseas markets.
Intel Vietnam Corporation has won the 2012 Award for Corporate Excellence after beating 82 nominated businesses from around the world. The award was given in HCM City on December 7 in recognition of the company’s activities that show its responsibility towards education and training, the environment and the community. According to Intel Products Vietnam General Manager Sherry Boger, the honor demonstrates Intel Vietnam’s responsibilities as well as the tremendous and continuous impact that the firm has on Vietnam. Launched in 1997, ACE is an annual award that recognizes US-owned businesses that exhibit exemplary corporate citizenship, promote innovation, and advance democratic principles around the world.
The southern province of Long An generated an estimated US$2.15 billion from exports during the past 11 months, surging 20 per cent against the same time last year, according to the provincial Department of Industry and Trade. During the period, the province also imported $1.58 billion worth of goods, down by a modest 1 per cent year-on-year, the department said.
VietJetAir’s new flight between Ha Noi and Da Lat will help draw tourists to the Central Highlands city, Deputy Prime Minister Hoang Trung Hai said during an opening ceremony for the new route yesterday in Lam Dong Province. The deputy PM suggested the airline continue to modernize its fleet and focus on safety as well as reliable customer service. VietJetAir’s Ha Noi – Da Lat route will operate one round trip a day on an Airbus A320. The one hour and 40 minute flight will depart from Ha Noi at 9:35am and return flights will leave Da Lat at 11:50pm.
