Business in brief 13 Jan 2012
Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) has officially increased its charter capital from VND4.433 trillion (US$211.1 million) to VND5.050 trillion ($240.47 million). The increase stemmed from stocks which VP Bank released to reward current shareholders as a bonus. A surge in the bank’s charter capital will help it build up its financial capacity, widen its network, invest in facilities and diversify its services.
Emirates Airlines, a leading carrier of the United Arab Emirates, will continue its expansion in Southeast Asia, adding HCM City to its global network starting June 4 of this year. Emirates will use an Airbus A330-200 in a two class configuration on the route to HCM City, which will be the airline’s 124th destination. Trade between the UAE and Vietnam exceeded US$730 million in 2010 and Emirates, through their cargo arm SkyCargo, will allow air freight for imports – largely automotive parts and raw materials – and exports consisting of garments, footwear and seafood.
The Vietnam-Russia oil and gas joint venture, Vietsovpetro has announced that its crude oil revenues exceeded US$5.6 billion in 2011. The figure was 57.6 per cent higher than the target set for the whole year and $1.68 billion higher than its earnings recorded in 2010, Vietsovpetro General Director Nguyen Van Tuyen said at a conference in Ha Noi on Tuesday. For 2012, Vietsovpetro has set a target of pumping up at least 6.14 million tons of crude oil, bringing in total revenues of $4.14 billion.
Vietnam’s State Treasury raised 1.88 trillion dong ($89.4 million) by selling government bonds in its first auction of the year, the Hanoi Stock Exchange said. The treasury sold the entire amount of 1 trillion dong of three-year debt it offered at a yield of 12.10 percent, and raised 880 billion dong via five-year debt at 12.15 percent, the exchange said in a statement seen by Reuters on Friday. The auction was on Thursday. At its last auction, on Dec. 28, the treasury raised 900 billion dong through the sale of three-year government bonds at a yield of 12.10 percent. Vietnam expects to raise about 25 trillion dong ($1.19 billion) from selling government debt in the first quarter of this year, the exchange said in another statement.
Clever Advertising Joint Stock Company (CleverAds) announced yesterday that it officially became Google AdWords Premier SME Partner in Vietnam. CleverAds is a pioneer company in implementing Google Adwords and other Google advertising products in Vietnam. Over the past four years, CleverAds has obtained a full technical certification from Google and has been strong partner in carrying out the company’s market development strategies in Vietnam. By late 2011, CleverAds had the largest market share in Vietnam with more than 1,000 customers such as Vietnam Airlines, Mobifone, VinaPhone, LG Electronic and Honda Vietnam. Nguyen Khanh Trinh, director of CleverAds, said that becoming Google’s first official partner would pave the way for other domestic businesses to apply advertising services and utilities provided by Google.
The State Bank of Vietnam (SBV) has allowed local businesses to import 2,100 tons of gold, announced the General Department of Customs on January 12. Accordingly, DI Co. Ltd. will import the largest amount of 450 tons, followed by Jewlpark Vina Co. Ltd., 360 tons, and Son Duong Vang Co. Ltd., 320 tons. Some businesses are permitted to buy 130-180 tons from overseas markets, while others are only allowed to import 6-20 tons. The imported gold will be used to make jewelries for export.
Equitizing enterprises with total assets of more than VND30 billion (US$1.43 million) are required to hire professional consultants to appraise the value of their venture, according to the Ministry of Finance (MoF). In turn, consultants must be assessed by the MOF and the list of approved organizations will be announced by the Ministry annually. Equitizing businesses holding more than VND10 billion ($0.48 million) in State capital have also been asked to seek consultation.
Southeast Asia Commercial Bank (SeABank) will become the nation’s first institution to provide AutoBank services with the first two points up and running in Hanoi and HCMC early next week. The AutoBank system will operate 24 hours, providing full basic banking services for customers to deposit money, withdraw cash, exchange currencies and search for information, said Le Thanh Hai, director of the SeABank card center. AutoBank is a popular service in developed countries as it helps customers use banking products in a more flexible way. The drive-by service is suitable for customers, local and international tourists and those having demands for banking transactions outside bank hours. Some other banks in the country already provide services such as cash withdrawal and certain online transactions. Hai added that the system is equipped with modern security technologies to prevent data theft.
Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, has signed an agreement to explore the feasibility of developing a 1,200 megawatt coal-fired power plant in Vietnam. The memorandum of understanding was signed with the People’s Committee of Quang Ngai Province on Thursday. Sembcorp said the proposed development could be located in Dung Quat Economic Zone, located in central Quang Ngai. Ng Meng Poh, Sembcorp’s Head of Singapore and ASEAN (Utilities) said the Dung Quat Economic Zone’s rapid development has supported "tremendous" economic growth in Quang Ngai. "It has been earmarked by the Vietnamese government to become a multi-sectorial economic zone and a base for oil refining and petrochemical industries. As such, Sembcorp certainly sees opportunities to invest and further establish our utilities presence in this fast growing region," he said. This is the second agreement Sembcorp has signed with Quang Ngai PC in the past six months.
The State Bank of Vietnam has granted quotas to more than 10 companies to import a combined 2.1 tons of gold, state television said on Friday. The companies would be allowed to import the gold for jewelry production only, Vietnam Television quoted customs sources as saying. Vietnam last allowed banks and gold companies to import the metal last September in an effort to narrow the gap between domestic and world prices. Gold bars have been widely used as a means for asset saving in Vietnam, which has added pressure to the local currency, the dong. The central bank has said it would have strict regulations to monitor the gold market this year. Vietnamese hold 200 to 300 tons of gold, the central bank governor said on Thursday.
Vietnam became the largest exporter of timber and wood products in ASEAN countries last year, earning $3.9 billion U.S. dollars in exports, local Vietnam News quoted the ASEAN Furniture Industries Council (AFIC) as saying on Thursday. According to southern Ho Chi Minh City Association of Handicraft and Wood Industry, wood products accounted for more than 80 percent of Vietnam’s total wood and timber exports, an increase of 500 million U.S. dollars in export value over the previous year. ASEAN would become a single market by 2015, with a larger capital flow, information and labor forces. The timber trade volume would improve significantly if a timber production zone with stable and competitive price was established in the region to help ASEAN exporters enhance their competitiveness, productivity and efficiency before the birth of the ASEAN Economic Community.
Real estate developer Hoang Anh Gia Lai (HAG) has targeted profits this year of VND1.7 trillion (US$81 million), a figure essentially unchanged from last year’s target. In addition to its traditional operations, the group projects earnings from rubber and sugar processing, with rubber plantations in Vietnam, Laos and Cambodia totaling 51,000ha. The company expects to begin producing its first rubber latex in Laos by July and will put a sugar mill into operation in the fourth quarter of this year with a capacity of 7,000 tons per day.
Masan Consumer, a subsidiary of food processor Masan Group (MSN), has purchased an additional 35,000 shares in Vinacafe Bien Hoa Corp (VCF), increasing its majority interest in the coffee processor from 50.1 per cent to around 50.25 per cent. The transactions were made through negotiation between November 4 and December 4 of last year.
Eximbank (EIB) has become the largest shareholder in Sacombank (STB) following its acquisition of ANZ Bank’s entire stake of about 103 million shares, representing a 9.6-per-cent interest in STB. Earlier in the week, Refrigeration & Electrical Engineering Corporation (REE) also sold 42 million STB shares to Eximbank.
Khanh Hoi Import-Export Co (KHA) will pay dividends to its shareholders directly via its headquarter in HCM City rather than through their accounts placed with SME Securities Co. The move came after the announcement that SME’s clearing operations had been suspended through February 7.
