Business in brief 12/02/2008
The southern province of Soc Trang raked in more than 315 million USD from the export of aquatic products in the first 11 months of the year.
The local enterprises have invested in moderning their production lines and expanded their outlets in Russia and Eastern Europe to boost exports.
One of the province’s largest seafood processors, Phuong Nam company, is aiming for a yearly export earning of 93 million USD, while Kim Anh Co. Ltd, has been able to increase earnings by 20 percent thanks to new processing lines.
Vietnam’s first refinery gets crude for test run
The Dung Quat oil refinery in central Quang Ngai province on Nov. 30 received the first 80,000 MT of crude oil that will service its test-runs.
Present at the event, Vice Chairman of the National Assembly Huynh Ngoc Son expressed his belief that the Vietnam Oil and Gas Group, the Dung Quat oil refinery project management board and relevant sectors will work to put the refinery into operation on schedule to ensure energy security for the country.
According to the Vietnam Oil and Gas Group’s plan, the Dung Quat oil refinery will get 4 million tonnes of crude oil from the Bach Ho (White Tiger) oil field for its one-year test-running period.
The supply of crude oil will be undertaken by the Oil Corporation (PV Oil), which will take the responsibility of distributing all 3.4 million tonnes of oil and gas products produced by the Dung Quat oil refinery.
When officially operating in 2010, the Dung Quat oil refinery is expected to churn out around 5.7 million tonnes of petrol and oil of international standard to primarily serve domestic consumption.
The country’s first refinery is designed to be capable of refining 6.5 million tonnes of crude oil into LPG, Propylene and petrol 90RON, 92RON, kerosene, Jet A1, diesel, FO which are expected to meet around 30 percent of local demands.
So far, the Dung Quat refinery has almost 98 percent of its construction workload completed. It is expected to start commercial operation by late February, 2009.
On Nov. 12, the refinery put its first generator, a 4002A turbine, of four generators that will provide electricity to power the refinery, into operation. The remaining three generators are expected to become operational by the end of December this year.
VND1,200 billion invested in Vina Universal Paradise Zone
The Quang Ngai provincial People’s Committee on November 28 made public a detailed plan for the Vina Universal Paradise Trade and Service Zone project in Son Tinh district and granted it an investment certificate.
The zone will be built on an area of 60 ha with a total investment capital of VND1,200 billion. The project will be carried out from now to 2012, including areas for trade, services, top-notch villa and a sports complex.
The zone is the second project in Quang Ngai province funded by Tan Tao Group from Ho Chi Minh City. Earlier, the group received a license from the province to build the Vina Universal film studio-the largest of its kind in Vietnam-in Duc Pho district with a total capital investment of US$50 million.
194 industrial and economic zones established nationwide
The Ministry of Planning and Investment organized a conference in Ho Chi Minh City on November 27 to sum up the implementation of Decree 29 issued by the Prime Minister concerning industrial, processing and economic zones.
Reports at the conference showed that over the past 17 years, 194 such zones have been set up across the nation with total area of 46,588 ha.
The industrial and processing zones have attracted 3,325 foreign direct investment projects and 3,082 domestically-funded projects, costing a total of VND185,000 billion.
In 2008, industrial zones are expected to fetch US$26,2 billion from production value, rake in US$13 billion from exports, contribute more than US$1 billion to the State budget and generate 1.1 million jobs.
However, delegates expressed concern about environmental pollution and required the management boards of these zones to tighten measures to protect the environment.
Workshop held on improving Vietnam’s brands in int’l market
The Hanoi Marketing Association, in coordination with the Hanoi Department of Planning and Investment, organized a workshop entitled: “Branding for International Premium Product and Packaging” on November 28th.
At present, Vietnamese businesses’ knowledge of how to design “unique” brands is limited. Thus, Vietnam’s brands have not been competitive in the international market yet. The workshop introduced ways of improving Vietnam’s brands and bringing them up to international standards, as well as ways Vietnam’s brands can gain access to international markets.
The workshop was attended by Cowan’s Business Director for Asia, Blair Triplett, and Cowan International’s Creative Director, Marcut Ancell, from Australia. Moreover, the workshop attracted the participation of a number of big businesses.
The workshop also offered opportunities for domestic businesses to bridge their differences and open continuous dialogues.
Khanh Hoa province attracts more foreign-invested projects
Eighteen new projects worth VND15 trillion have registered to invest in Van Phong economic zone so far this year, the People’s Committee of the central province of Khanh Hoa announced on Nov. 28.
Among them, foreign businesses have invested in four projects, accounting for nearly half of the combined capital.
In a tourist resort in the northern part of Cam Ranh peninsular, 17 projects have been licensed with a total investment of VND8.7 trillion.
At present, Khanh Hoa has 66 foreign-invested projects, capitalised at US$1.05 billion. The province is focusing on completing procedures to grant business licenses to many large projects, such as the STX ship-building factory from the Republic of Korea, Van Phong petroleum depot, Ninh Thuy cement distribution station, Van Thang high-tech zone and Sumitomo thermo-electric power plant from Japan.
Hai Phong kick-starts int’l trading centre
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| Do Son town, Hai Phong City |
The 120,000 sq.m centre, hosted by the Dongshing-Vietnam international one-member limited liability company, will contain trading stalls, offices and apartments for lease, once completed.
The project aims to maximise the business opportunities that will be created when Vietnam opens its retail market from January next year, in accordance with its WTO commitments.
The investors have pledged that the centre will become operational within 8 months.
Hydro-power project built in central province
The Vietnam Urban and Industrial Zone Investment and Development Corporation (IDICO) started construction of the Dak Mi 4C hydro-electric power plant in central Quang Nam province’s Phuoc Son district on Nov. 28.
The 18MW hydro-electric power plant on the Vu Gia-Thu Bon river system is built with a total investment of 430 billion VND. It will annually generate 69.1 KWh when it is completed by 2011.
Dak Mi 4C, part of the Dak Mi 4 hydro-electric power project, will help improve the environment and the living conditions of people in remote and poor areas.
Oil and gas corporation to exploit oil in Venezuela
PetroVietnam Exploitation and Production Corporation (PVEP), a subsidiary of the Vietnam National Oil and Gas Group (PetroVietnam), will establish a joint venture with a Venezuelan firm to exploit and refine heavy oil in Venezuela .
On Nov. 27, PVEP signed a memorandum of understanding with the Venezuelan Petroleum Corporation (CVP), a member of the Venezuela Oil and Gas Group (PDVSA), on the establishment of a joint venture and contract to exploit and refine heavy oil at Lot Junin 2 in the Orinoco heavy oil belt in Venezuela .
One operational, the project will turn out up to 200,000 barrels a day, equivalent to 10 million tonnes of oil per year.
Heavy crude oil pumped up by the JV will be refined into light oil by its plant.
The JV contract will come into effect immediately after it is ratified by the Venezuelan parliament.
Russian wood businesses to seek partners in Vietnam
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The Industry and Trade Ministry’s Trade Promotion Department said it will coordinate with the Vietnamese General Consulate in Russia to organise a trading session between Russian and Vietnamese businesses in Ho Chi Minh City on Dec. 2.
The Russian businesses expect to cooperate with Vietnamese partners in wood material, furniture and wood-based products, the department said.
In the first seven months of 2008, Vietnam ’s wood exports to Russia reached 2.1 million USD, said Huynh Van Hanh, deputy chairman of HCM City ’s Wood Industry and Handicrafts Association.
Russia is expected to become a promising market for Vietnamese wood exporters with its total wood product consumption in 2007 reaching 4.5 billion USD. The figure is forecast to increase by 14.6 percent this year.
In the 11-month period of this year, Vietnam earned 2.56 billion USD from wood export, a year-on-year increase of 19.9 percent.
Canadian telecom firms woo partners
Telecom executives from Ontario, Canada ’s largest province, sat down with Vietnamese partners to discuss the potential for co-operation between the two countries’ ICT industry on Nov.27.
Know as the country’s business hub, Ontario is home to more than 5,000 ICT (information and communication technologies) firms, ranging from homegrown global giants like Nortel Networks and Mitel Networks to multinationals like IBM, Alcatel, Cisco and Microsoft.
Highlighting the strong relationship between the Canadian Government, universities, and companies in boosting the ICT market and Ontario ’s open business culture, the visiting executives said they were hopeful of benefiting the Vietnamese ICT industry.
Vietnam-China fair sees 11 trade deals
Vietnamese and Chinese enterprises signed 11 trade contracts with a total value of more than 107 million USD on November 27, according to Lao Cai province’s Trade and Investment Promotion Centre.
The deals were signed at the annual Vietnam-China border trade fair 2008 taking place in Hekou district of the Chinese province of Yunnan .
The largest deal, worth 21 million USD, on the construction of a hydroelectric plant was signed by the Lang Son-based Company of Thach Ban Power Co.I and a partner in Hekou district.
The total contracts included nine deals worth 76.2 million USD secured by Lao Cai’s enterprises alone.
The agreements are expected to be implemented in 2009
State-owned enterprises to speed up hire of CEOs
Permanent Deputy Prime Minister Nguyen Sinh Hung has assigned the National Steering Committee on Enterprises Renovation and Development to select state-owned enterprises (SOEs) to pilot the hire of chief executive officers (CEOs) in 2009.
In his dispatch on Nov. 27, the Deputy PM entrusted the Ministry of Labour, War Invalids and Social Affairs with a task to complete a project on SOEs’ recruitment of CEOs, deputy CEOs, directors, deputy directors and chief accountants, as well as wage and bonus regulations for these managerial and professional positions.
The project is required to be submitted to the Prime Minister in the first quarter of 2010.
The Prime Minister had earlier allowed five state-owned corporations to implement a pilot model of hiring CEOs. They included the Vietnam Shipbuilding Industry Corporation (Vinashin), the Vietnam Motor Industry Corporation (Vinamotor), the Vietnam Electrical Equipment Corp. (VEC), the Vietnam Glass and Ceramics for Construction Corp. (Viglacera) and the Multi-Service Transport Corp.
To date, four of them have had their CEO hiring projects approved by the PM.
IZ project launched in central province
The central province of Nghe An and PetroVietnam Construction Corp (PVC) organised a group breaking ceremony for the Hoang Mai Industrial Zone on Nov. 26. The new IZ has total investment capital of 680 billion VND (41.2 million USD).
The project, covering 290ha in Quynh Luu district, Nghe An province, is part of a development strategy implemented by the Prime Minister. Once completed, the project is predicted to attract domestic and foreign enterprises, and promote the area as a business destination.
The industrial zone aims to attract enterprises from the construction materials, equipment manufacturing and chemical sectors, said provincial authorities.
Hoang Mai IZ is located near Highway 1A Nghi Son deep-water port and the Nghi Son oil refinery complex. Four enterprises have already registered to rent land with a total area of 136ha.
The provincial authority expects the cornerstone project in the central economic region to be fully leased within five years.
PVC, the provincial people’s committee and PV Power land also opened a commercial centre named Quynh Luu Plaza on Nov 26.
Covering an area of more than 3,300 sq. metres, the nine-floor plaza is in the centre of Cau Giat Town , Quynh Luu district.
Vietnamese industries promoted in Tokyo
A two-day industry exhibition held in Tokyo has offered the chance for small and medium-sized enterprises from the city, as well as Chiba, Saitama and Kanagawa provinces to find partners and gather information to prepare for opening offices in Hanoi.
According to Nguyen Thi Thuy Van, Head of the Hanoi Representative Office in Tokyo , the event, which took place on Nov. 25-26, also contributed to enhancing the ties between Hanoi and Tokyo in a number of diverse fields.
Japanese businesses expressed high levels of interest in mechanical engineering subcontracting, wooden products, software development and recruitment services, which were being showcased at the Vietnamese stall.
This is the third time the Hanoi Representative Office has taken part in this exhibition, organised annually by the Tokyo authorities.
