Business in brief 11/17/2008
The US Delta Airlines will launch a new daily route from the US to Ho Chi Minh City on June 1, 2009.
Passengers on the route will fly with Boeing 757-200 planes and transit at Narita airport of Japan .
Delta Airlines is the largest aviation firm in the world, each year providing flights for more than 170 million passengers, to 375 destinations in 66 countries worldwide.
Lam Dong to open int’l university township
Construction of an international university township is scheduled to commence in early 2009, announced the People’s Committee of Central Highlands Lam Dong province on Nov. 16.
Three domestic companies named ICIC, Thai Thinh and Hoa Hong have received licences to participate in the project.
The 670 ha township is expected to provide learning space for 50,000 students and create jobs for 8,000 people, turning the locality into a regional education centre.
Floating port for crude export to open at Su Tu Vang oilfield
The Ministry of Transport and Communications has decidd to open a floating port to serve the export of crude oil from the Su Tu Vang (Yellow Lion) oilfield, Lot 15-1, on Vietnam ’s continental shelf offshore central Binh Thuan province.
The floating port is able to accommodate ships of up to 150,000 DWT.
The safe space between the port and other projects is two nautical miles.
The Vung Tau port authorities is assigned to undertake the management of the floating port.
Can Tho city seeks wide-ranging investments
The Mekong delta city of Can Tho authorities signed 11 memorandums of understanding with economic groups and investors on the development of industries, post and telecommunication, steel plant construction, hotel building and hi-tech industrial zones.
The signing took place at an investment promotion conference held on Nov. 16 by the municipal authorities in the hope of luring around 6 billion USD in developing various industries in the locality.
Can Tho has offered investors 29 projects involving hi-tech agricultural zones, electricity industry, electronics, biotechnology application, waste treatment, industrial zone infrastructure, handicraft village-ecotourism, vocational training, shipbuilding, seaports, hospitals, urban complex, and re-settlement areas.
The conference attracted the participation of more than 150 representatives of local and foreign economic groups and individual investors.
Located around 169 km from Ho Chi Minh City , Can Tho is the biggest city in the Mekong delta, which is regarded as the “rice basket of Vietnam ”. It is the Mekong delta’s centre of economics, culture, science and technology.
Boasting a large river port and several industrial parks and potentials for tourism, the city is expecting larger foreign investment to explore its untapped potential.
Vietnam, Venezuela finalise creation of joint venture
Vietnam and Venezuela have successfully completed negotiations for a vehicle production joint venture in Venezuela, Cuba’s Prensa Latina news agency cited Venezuelan diplomatic sources as saying.
Trade agreements were reached between Vietnam’s Vinamotor company and a delegation from Venezuela’s Ministry of Light Industry and Trade (Milco) during a visit to Vietnam recently.
Signed documents by the two sides include the creation of a joint venture for the construction of light duty trucks, motorcycles and a cement plant.
From now until May next year, Vinamotor will send experts to Venezuela to implement the projects.
Paris forum gathers Vietnamese businesspeople worldwide
A forum designed to bring together Vietnamese entrepreneurs from all parts of the world took place for the first time in Paris , France , from Nov. 14-15.
More than 300 Vietnamese businesspeople from Europe, North America and Vietnam attended the forum, which is initiated by Vietnamese entrepreneurs in France and Switzerland .
Speaking at the event, Deputy Foreign Minister Nguyen Thanh Son praised the important role played by overseas Vietnamese as well as foreign friends, agencies and businesses in fostering Vietnam’s investment, trade, financial and banking relations with the international community.
Vietnamese businesspeople living abroad are one of the important sources of strength that help to advance the country’s national construction and development, and improve Vietnam’s position in the international arena, he said.
Son, who is also chairman of the State Committee for Overseas Vietnamese, told the participants that the Prime Minister recently decided to establish an association of overseas Vietnamese businesspeople, and that the group will begin operations soon.
The deputy minister called on all Vietnamese entrepreneurs, intellectuals, economic experts and scientists who are residing abroad to join the group in order to help build Vietnam into a rich and strong nation.
At the forum, the delegates discussed a wide range of issues regarding the country’s opportunities and challenges in the context of globalisation and world financial crisis.
They also exchanged views on business directions for the years to come, focusing on new technologies and markets, banking and finance, energy and sustainable development, import-export, education-training, health and the environment, outsourcing and technology transfer.
Other issues, including investment opportunities offered by the equitisation process in Vietnam and the property rights of businesspeople of Vietnamese origin, were also tabled for discussion.
The forum was organised with help from the Ile de France region’s council, the Paris Chamber of Commerce and Industry and the Vietnam Chamber of Commerce and Industry.
Pham Gia Huyen, head of the organising board and president of the France-based business club CDVF, affirmed that the forum will be held annually from now on, following the success of the first gathering.
Apple opens online Vietnam shop
Apple has launched an online store for the Vietnamese market called Apple Store Vietnam (store.apple.com/Vietnam) where customers can order goods on the site and pay by Visa or Mastercard.
The main language of Apple Store Vietnam is English but prices are listed in Vietnamese dong. According to Apple, goods will be delivered within one or two days.
Vietnamese firm to explore mines in Laos
With an initial investment capital of 2 million USD, Dai Thang will spend 42 months on exploration of urine, lead and zinc on 808 sq. km in Samtay district, Houphanh province, and Noongket district in Siengkhoang of Laos.
If the project is feasible, the company will submit to the Lao Government for exploitation.
Ore mining has emerged as one of Laos ’ spearhead economic sectors in the recent years, attracting a large flow of investment capital from investors both at home and abroad. The export of minerals, especially gold and copper, is a major source of revenue for the state coffer.
Mining is also the busiest sector in Laos with over 120 domestic and foreign-invested companies having been granted business licences by the end of July.
According to initial research, Laos now boasts over 500 kinds of underground minerals from the North to the South of the country.
Riman hoped that with the opening of the new factory, Vietnam would provide automobiles, parts, and repair services to other countries. He added that the new venture would contribute to Vietnam ’s rapidly growing economy.
During the meeting, Nguyen Trung Tin, deputy head of the city’s People’s Committee, said that the State-owned Sai Gon Transportation Mechanical Corporation (Samco) will act as Skoda Auto’s local partner.
More than 7,000 companies from 38 countries including China , Japan , Russia , South Africa and Turkey joined the event.
Vietnamese ambassador to India Vu Quang Diem expressed his hope that more Vietnamese companies will participate in fairs in India to contribute to promoting the country’s exports and boost bilateral economic-trade relations.
On display at, which will last until Nov. 27, are Vietnam-made lacquered paintings, wooden and ceramic gifts and textile products.
The same day, a two-week seminar on biotechnology organised by the International Centre for Genetic Engineering and Biotechnology (ICGEB) was concluded in the Indian capital.
Scientists from ICGEB and other countries including Vietnam , Italy , Romania , Bangladesh , Brazil , Costa Rica and Egypt discussed about issues on gene alteration technology.
ICGEB, a UN scientific study organisation, was established in 1987 with 57 official member countries.
A Vietnamese company has exported 1000 sand paintings to America this month.
Nguyen Huy Duy, director of the Van Tien Sa Panting Company, said that the paintings were priced at US$15- $60 per painting.
Moreover, the company has received orders from Europe and plans to export 200 sand paintings to Germany in the next few months.
The sand paintings are made by pouring natural sand of difference colors into a narrow space between two pieces of glass, creating many designs including landscapes and portraits.
While there is demand abroad for this new art, it is difficult to meet it because each piece is painstakingly produced by hand.
Duy has collected over 80 types of sand with different colours and has “painted” two of the largest sand paintings in the country, titled “Dance of Moonlight Night” and “Sunrise on River”.
Korea Exchange and Hanoi Securities Trading Center promote co-operation
Korea Exchange, Inc (KRX) and the Hanoi Securities Trading Center (HASTC) signed a Memorandum of Understanding (MOU) in Hanoi on November 14 to boost co-operation between both capital markets.
Accordingly, the two exchanges agreed to enhance development of both markets through sharing information in the areas of market regulation and enforcement. KRX has also pledged to collaborate with HASTC to provide educational assistance to potential Vietnamese enterprises that are seeking for international capital and branding through a listing in the Republic of Korea. This includes organising seminars on listing rules and requirements for potential Vietnamese enterprises.
For its part, the HASTC, within its capacity, will guide Vietnamese listing aspirants in managing local legal and regulatory processes, and co-operate with KRX in its supervision of Vietnamese companies that are listed on KRX.
“This event marks a new stage of development of the HASTC in collaborating with international capital markets in general and with KRX in particular,” said Mr Tran Van Dung, HASTC Managing Director, adding that the HASTC expected to have closer co-operation with KRX in sharing market information and development experience, as well as assisting Vietnamese listed companies to access the Korea market.
Mr Chang Ho Lee, President and CFO of KRX also expressed his firm belief that the signing of the MOU between the two exchanges would provide the base for a strategic partnership between HASTC and KRX far overpassing normal business co-operation in the future.”
Lao Bao Special Trade-Economic Zone attracts over VND 2.3 trillion worth of investment
Lao Bao Special Trade-Economic Zone has so far attracted 52 projects with a total registered investment capital of over VND 2.3 trillion after a decade of etablishment and development.
In addition, hundreds of enterprises and some 2,500 households are carrying out trading activities in the zone. The zone’s total industrial production value in 2008 is estimated at VND 400 billion, accounting for 35-40% of the total provincial industrial production value.
The figures were released at an anniversary to mark the 10th founding anniversary of the zone in central Quang Tri province.
On the occasion, provincial authorities presented investment licences to three enterprises with a total registered capital of VND 100 billion.
Quang Ninh makes FDI attraction priority
The northeastern province of Quang Ninh has attracted an increased flow of foreign direct investment (FDI) so far this year as a result of its efforts to expand investment promotion activities abroad.
Since the beginning of this year, Quang Ninh has granted licences to more than 10 projects with a registered capital of nearly 135 million USD, 2.5 times higher than the same period last year. This figure has brought the total number of FDI projects in the province to 110, with total investment exceeding 1.2 billion USD.
More than 100 business delegations from countries and territories worldwide such as China , the Republic of Korea , Japan , Taiwan , Hong Kong , Thailand , Canada , Australia , the US and the United Arab Emirates , have flocked to the province to explore investment opportunities.
Quang Ninh encourages FDI investment in projects that focus on infrastructure and industrial development, high-quality tourism and technology, as well as other areas that need supportive projects and employ large numbers of workers.
To facilitate the operations of investors, the province has spared no efforts to accelerate administrative reform and project site clearance procedures, develop high-quality human resources, and allocate land for the construction of houses for workers, particularly those working at industrial zones (IZ).
Quang Ninh is now home to five IZs, namely Cai Lan, Viet Hung, Hai Yen, Hai Ha and Dong Mai, with areas ranging from 150 to 300 ha.
ACB and PMC agree on comprehensive cooperation
Two subsidiaries of the Asia Commercial Bank (ACB) will act as financial consultants for the Phu My Bridge BOT Joint Stock Company (PMC) under a comprehensive strategic cooperation agreement was signed in Ho Chi Minh City on Nov. 14.
Under the terms of the agreement, the ACB Securities Company (ACBS) and the ACB Fund Management Company (ACBC) will provide PMC with consultations services regarding financial activities relating to its business and investments, including financial structure, the arrangement of project capital and investment capital management.
PMC is a large-scale investor in transport facilities in Ho Chi Minh City , with charter capital of 745 billion VND. The company is currently implementing a 2.6 trillion VND (153 million USD) project to build Phu My Bridge project and a 1.6 trillion VND (94 million USD) project to improve the road network on the approach to Phu My Bridge.
