Business in brief 17/11
Vietnam’s central bank governor said on Tuesday any devaluation in the dong would pose risks to growing national and corporate foreign currency debt. "National debt is very large and corporate debt denominated in foreign currencies is not small, at around USD17 billion," Nguyen Van Giau told the National Assembly, the country’s parliament, in a live television broadcast.
A series of investment, economic, cultural, and educational events were on show at a program titled “Meet Vietnam” that was held in San Francisco on Nov. 15. The inauguration was followed by a display at City Hall titled “Vietnamese space” which featured images and objects of Vietnamese culture, music, and other arts. There were seminars on Vietnamese education and tourism-aviation on Nov. 16. The opening ceremony was attended by Deputy Prime Minister Truong Vinh Trong, Ambassador to the US Le Cong Phung; Consul General in San Francisco Le Quoc Hung, officials from the Ministries of Foreign Affairs; Education and Training; Planning and Investment; Culture, Sports and Tourism; Information and Communications; and leaders of Ho Chi Minh, Can Tho, and Da Nang cities. The US side was represented by California State senator Loni Hancock; US Ambassador to Vietnam, Michael Michalak; the mayor of Berkeley, Tom Bates; and San Francisco city officials.
Vietnam’s Dien Quang Lamp Joint Stock Company and PDVSA Industrial S.A Company of Venezuela have inked an agreement on the production of energy compact bulbs. Under the framework of the agreement, the two companies will establish a joint venture named Vietven Iluminaciones, S.A plant to build Venezuela’s first plant making energy saving with an investment of USD300 million. The plant is designed to produce 74 million bulbs annually to supply the domestic market and export to member states of the Bolivian Alliance for the Peoples of America (ALBA).
Vietnam tea exports increased 22.3% in volume and 14.5% in value in the first 10 months of 2009 over the same period last year. The Ministry of Agriculture and Rural Development revealed that the country’s total exports in the first 10 months of 2009 hit USD145 million, or 110,000 tons. According to the Ministry, tea is the only agricultural and forestry product that has seen growth in both export value and volume this year. The average exported price of Vietnamese tea over the last 10 months has been USD1,100 per ton versus USD2,200 per ton -- the average price on the world market today. Vietnam exports tea to 110 countries worldwide, with Pakistan, Russia and Taiwan being the major importers.
On the back of a year-on-year 16% decline in international arrivals for the first nine months of 2009, Vietnam’s luxury hotels have witnessed substantial decline in their occupancies. In the capital Hanoi, it was reported that five-star hotels recorded an average occupancy of 55%, an eight-percentage-point decline from the same period in 2008. Similarly, five-star hotels in Ho Chi Minh City registered an almost ten-percentage-point decline to average 49% in year-to-date September figures. These figures reflected a significant decline in the market which was recording occupancy levels between 70% to 80% in 2007.
Vietnam is ready to provide assistance to its businesses in establishing cooperation with their Irish counterparts in the information and communications technology (ICT) sector, said Deputy Prime Minister Hoang Trung Hai on November 16. Speaking at the Vietnam-Ireland Business Forum held in Hanoi, Deputy PM Hai also expressed his support for the establishment of the Vietnam-Ireland Business Council which will serve as a regular channel to exchange and review cooperation, investment and trade between the two countries. The forum, entitled “Cooperation for the Development of the Software Industry in Vietnam”, will open a new door of opportunity for businesses on both sides to cooperate in the ICT sector, added Deputy PM Hai.
Singapore companies are concentrating on Vietnam’s rising middle class, who they believe will offer great investment opportunities. Singapore business leaders are meeting with the Vietnamese President on this week to discuss areas of cooperation in telecoms, residential property and infrastructure businesses. Most Singapore businesses have up to now been established in northern Vietnam. The leaders are hoping the meeting with the president will open up new opportunities for other parts of Vietnam.
Nokia Siemens Networks (NSN) has won a contract from Vietnam-based telecom operator VMS MobiFone to modernize its network to 3G and implement an IP backbone. Under the contract, NSN will provide its packet switched core network and IP backbone. It will design and maintain the network using its remote delivery capabilities, and upgrade the operator’s existing radio access network to 3G using Flexi Multiradio Base Station. Additionally, NSN’s multi-technology NetAct offering will enable the smooth management of the network.
Around 200 businesses from 18 countries and territories will attend Vietnam Comm 2009 and the International Exhibition on Electronics Products in Vietnam 2009 slated for Nov. 18-21 in Hanoi. Vietnamese telecom giants Vinaphone, Mobifone and VDC will join world famous brands - Cisco, Siemens, NTT Docomo, Motorola and Nokia Siemens Network - at the twin expos, which are the largest and most significant information and communications technology (ICT) and electronics events in Vietnam. Speaking at a press briefing in Hanoi on November 16, Director of the VNPT’s Public Relations and Information Centre Bui Quoc Viet said that the participation of a large number of international telecom businesses proves that Vietnam is considered one of the most attractive ICT and electronics markets in the world, despite the prolonged economic slowdown.
