Business in brief 20th June 2011
Hanwha Group President Kim Seung Youn expressed interest in solar energy in Vietnam, especially Ho Chi Minh City, during his meeting with the city’s Party Secretary Le Thanh Hai on June 18. Kim described Vietnam as an attractive market and HCM City – the nation’s largest economic and industrial hub – as ideal for investment, especially in solar energy. In return, the executive of the leading industrial consortium from the Republic of Korea was assured of best available conditions for foreign investors, including those from the RoK, to make profit in the city. Hai said that HCM City takes the lead in development and integration, which also means that it is the nation’s greatest energy consumer. In the new stage of development, the city will face more difficulties in power generating sources.
The national flag carrier, Vietnam Airlines, has announced that a new air route between Vietnam and the UK will open on December 8. The airline is expected to use Boeing 777 aircraft to operate seven flights per week by 2014. London Gatwick is selected to run the new air route. At present, two-way trade turnover between Vietnam and the UK hits more than US$2 billion per year. The number of British customers to Vietnam is expected to increase by over 20 percent per year. Gatwick is about 46km south of London, near the financial center and considered London’s second largest airport. It is also listed among the world’s ten biggest airports. Currently, Vietnam Airlines is making all necessary preparation for the first flight.
Indonesia’s imports of food and beverage from Vietnam in the first half of this year surged 43.14 percent over the same period last year. The Indonesian Food and Beverage Association (Gapmmi) on June 19 released a report that the country spent US$5.51 million on imports of food and beverage from Vietnam in the reviewed period. The association said the country’s imports of food and beverage from other ASEAN nations continue increasing in recent months thanks to the lifting of taxation following the regional free trade agreement (AFTA) and efforts by the Indonesian government and relevant agencies in fighting smuggling. Malaysia continues to be the largest exporter of the staples to Indonesia with an export value of US$20.6 million, an increase of 76.17 percent, making up over 23 percent of Indonesia’s food and beverage imports. Indonesia also imported US$7.48 million worth of foods and beverage from Singapore in the period, a year-on-year increase of 29.1 percent.
Keppel Land and its joint venture partners have obtained masterplan approval to develop an integrated waterfront residential project in Ho Chi Minh City, Vietnam. The project will be developed through Keppel Land’s wholly-owned subsidiary Flemmington Investments, as well as joint venture partners Tien Phuoc Company and Tran Thai Company. The prime waterfront development comprises about 6,430 homes surrounded by retail, commercial, educational and medical facilities with a total gross floor area of 1 million sq m.
In 2010, the Vietnamese seafood sector earned US$5 billion from exports with tra exports reaching more than US$1 billion. In the first six months of this year, Vietnam earned more than US$3 billion in export turnover. The sector has targeted a turnover of US$5.5 - 6 billion for the whole year. Currently, the US is Vietnam’s largest seafood export market, followed by Russia and Ukraine. Vietnam also plans to penetrate the Central Africa market in the future. Vietnam aims to diversify its aquaculture and apply new technologies for breeding clean tra and basa fish, ensure food safety and hygiene and seek new aquatic products. Vietnam has cooperated with many ASEAN nations in the field of aquaculture. It has signed agreements on exploiting seafood products with Indonesia and the Philippines and plans to enter similar deals with Myanmar and Malaysia in the future. Vietnam also aims to cooperate and exchange information with Thailand in this field.
Truong Hai Auto Joint Stock Co (Thaco) has recently inaugurated and put into operation the new bus manufacturing facility situated in Chu Lai Truong Hai Bus production and installation complex, Quang Nam province. At the same time, the company officially introduced to public the new Thaco commercial buses. The construction work was officially started in May 2010. The new bus manufactory was located in an area of 15 hectares with total investment capital of about 600 billion dong. In the first phase, Thaco’s manufactory will have designed capacity of 1,500 CBU per year, providing jobs for over 600 laborers. The new manufactory will produce specific products such as Thaco Mobihome, Thaco County. Thaco Aero, Thaco Universe from 18-51 seats, the urban bus of 30-80 seats. By mid-2012, the auto maker expects to export its products to Asean markets.
The Government gave a green light to the Cuu Long (Mekong) Delta province of Dong Thap to establish five new industrial zones covering a total area of 850ha in the 2015-20 period. Planned new zones will include Ba Sao (150ha), Tan Kieu (150ha), Truong Xuan-Hung Thanh (150ha), High-tech IZ (250ha) and Song Hau 2 (150ha). During this time the province will also expand the existing Sa Dec and Tran Quoc Toan zones.
Vietnam’s exports to Mexico reached more than US$72 million in April, up 25% compared to the last year’s figure of US$58 million one year earlier. According to the Trade Office of the Vietnamese embassy in Mexico and the Central Bank of Mexico, Vietnam’s imports from Mexico in May dropped 27% from US$5.4 million in April to US$3.9 million. Trade counselor of the Vietnamese embassy in Mexico, Hoang Anh Dung said Vietnam continues to enjoy a trade surplus to the second largest economy in Latin America, thanks to an increase in traditional exports such as footwear, garments and seafood. Vietnam’s exports to Mexico hit US$286.8 million in the first four month of this year, a year-on-year increase of nearly 21%, and imports fell by 42% to US$16 million. In 2010, two-way trade turnover between Vietnam and Mexico reached more than US$914 million and is expected to hit US$1 billion this year.
A delegation of seven French businesses will arrive in Vietnam on June 20 for a three day visit learn more about Vietnam’s ship building industry, according to the French embassy in Hanoi. The working visit aims to strengthen cooperation between French and Vietnamese businesses to develop sustainable partnerships and cooperate in trade, industry and technology. The visit will provide an opportunity for prestigious French businesses to introduce their advanced technologies, equipment, services and industrial production line to Vietnamese businesses. The delegation plans to hold working sessions with Vietnamese businesses and agencies from Hanoi, Nam Dinh, Hai Phong and HCM City.
