BUSINESS IN BRIEF 19/5
The Governor of the State Bank of Vietnam Nguyen Van Giau has asked the banking sector to firmly grasp the economic situation, become the business community’s friend, help it to overcome any difficulties and increase production.
Addressing a conference between the banking sector and businesses in HCM City on May 18, Governor Giau said that the Vietnamese economy has remained stable for the past two months and will maintain that stability, however he said that interest rates should be set according to the market’s supply and demand. He said it is normal for some commercial banks to have slightly increased interest rates to meet the demand for credit and asked all enterprises to keep focused on their business.
Flexible control of foreign exchange rates remains under State management and no major changes have been seen in the foreign exchange market, Giau said. The SBV will continue to issue proper policies to ensure stable exchange rates, he stressed.
On behalf of the business community, Vice Chairman of the Vietnam Chamber of Commerce and Industry Pham Gia Tuc praised the banking sector’s effective support for businesses. He said he believed that the banking sector would continue to perfect its policies and mechanisms to create the best possible conditions for businesses, particularly small and medium sized enterprises, to handle any difficulties, stabilise operations and develop further.
Work starts on first northern polyester fiber plant
Construction of northern region’s first polyester fiber plant began in Dinh Vu industrial zone, Hai Phong port city, on May 18. The 325 million USD plant, to be finished in July 2011, has a designed capacity of 500 tonnes of fiber per day.
Addressing the ground breaking ceremony, deputy minister of Industry and Trade Bui Xuan Khu said the plant will contribute to ensuring stable materials supply for the garment and textile industry, while making use of domestically-available crude oil.
The Dinh Vu polyester fiber plant, invested by the PetroVietnam-Vinatex Dinh Vu (PVTex), is part of the master plan for the chemical industry development till 2010, with a vision to 2020.
VCCI fortifies ties with foreign business associations
The Vietnam Chamber of Commerce and Industry (VCCI) held its first meeting with representatives from foreign business associations in Vietnam on May 18 in Hanoi.
“The close cooperation between the VCCI and foreign business associations in Vietnam plays a very important role in further improving the business environment and promoting investment activities in the country,” said VCCI President Vu Tien Loc at the meeting.
Loc proposed that the VCCI and foreign business associations hold consultations regarding policies and laws on investment, exchange information and share experiences in investment and trade.
He suggested organising regular meetings between the VCCI and foreign businesses associations every three to six months.
President of the UK Business Association in Vietnam Patrick Regis shared the same view with the VCCI President, saying that business associations’ opinions are useful for the formulation of laws relating to them.
Meanwhile, Vice President of the Republic of Korea Business Association Kim Ho Kyun said that such meetings will help fasten the relations between the VCCI and foreign business associations. He said he hoped there would be similar meetings and dialogues in the near future.
At the meeting, the participants suggested Vietnam further simplify administrative procedures by building a one-stop mechanism and improve education quality at all levels, including primary education. Tertiary education and vocational training should be linked with economic demands, they said.
They also emphasised their concern over the infrastructure development and the coordination in settling illegal strikes. “The settlement of these issues will help the nation attract more foreign direct investment (FDI) capital,” the business representatives noted.
There are around 20 foreign business associations operating in Vietnam. The meeting drew representatives from the American Chamber of Commerce in Hanoi and Ho Chi Minh City and the Business Associations of Europe, Japan, the RoK, China, Malaysia, Thailand and Singapore.
City to hold merger, acquisition seminar
The gioi & Vietnam newspaper and two Government agencies will organize an international seminar on mergers and acquisitions (M & A) in Ho Chi Minh City on July 13-14.
On its agenda would be several vital issues like the legality of M & A, international experience in the M & A field, and market prospects for M & A, organizers said.
“This will be another opportunity to assert Vietnam as a market economy and continue to fully integrate into the world economy,” Vu Son Thuy, the newspaper’s editor-in-chief, told the media.
Attending the seminar will be public officials, businesses and international organization as well as executives from investment funds, transnational groups, legal agencies and consulting companies from several countries.
Discussions will focus on M & A in four main areas – distribution, finance, property, and information technology and telecommunication.
Though still new to Vietnam – just 112 mergers worth 1.8 billion USD took place in 2007, with the biggest deal valued at 248 million USD – M & A has big potential for development in the country.
Pricewaterhouse Coopers has said Asian financial institutions, especially large funds and banks, are planning to tap into the best ever opportunities brought about by the current financial crisis to dominate the M & A scope in Asia.
Business communities in countries like China , Japan , South Korea , Malaysia , the Philippines , Australia and Vietnam anticipate M & A operations to thrive in the next couple of years.
Vietnam and Indonesia would emerge as the two most favoured venues for M & A hunters in Asia, said Sam Koh-Weng, an executive of Pricewaterhouse Coopers in Singapore .
The seminar’s Government backers are the Ministry of Planning and Investment Foreign Investment Agency and the Ministry of Foreign Affairs’ Competition Management Department.
