Business in brief 22 Sep 2011
The Ministry of Finance (MoF) has established three teams to inspect the prices of imported fuel at four major domestic distributors including the Vietnam National Petroleum Corporation (Petrolimex), PetroVietnam Oil Corporation, Sai Gon Petro Co Ltd and Dong Thap Petroleum Trading Co Ltd (Petimex). Inspection teams are assigned to look into these distributors’ inventory fuel prices as of August 26, 2011 and imported fuel prices from January 1, 2011 to September 15, 2011. Fuel trading activities and related expenses by these enterprises are expected to be clarified through the inspection. The MoF is also taking a close look at the use of the Price Stabilization Fund as of the middle of this month. This move was part of MoF’s efforts to manage this essential commodity more effectively.
Many UK businesses and Vietnamese experts gathered at a seminar in Liverpool on September 21 to promote trade and investment in Vietnam. The seminar was held by the Vietnamese Embassy in the UK and Northern Ireland, the Liverpool Chamber of Commerce and the UK Trade and Investment (UKTI). UKTI trade adviser Peter Thompson said Vietnam is a dynamic and potential market. After the two countries signed a joint declaration on strategic partnership in 2010 bilateral trade has increased considerably. The UK is currently the Vietnam’s second largest trade partner in the European Union. Vietnam’s exports to the UK were estimated at US$1.3 billion and imports at US$315 million in the first seven months of this year. Vietnam Airlines will open the Hanoi-Ho Chi Minh City-London air route as from December 9, 2011 to facilitate cooperation in trade, investment, tourism, education and training between Vietnam and the UK.
Vietnam’s economy grew 5.76 percent in the first nine months of the year from the same period last year, the state-backed news website Gafin.vn on Wednesday quoted the government’s statistics office as saying. Last year, gross domestic product expanded 6.52 percent during the same nine-month period. The government has been fighting Asia’s highest inflation and the Asian Development Bank earlier this month cut Vietnam’s full-year economic growth for 2011 to 5.8 percent from 6.1 percent projected in April.
Vietnam’s government bonds advanced on speculation an improved cash supply at lenders will boost demand for the securities. The central bank on Sept. 19 extended the term at which it lends to commercial banks via open-market operations to 14 days from seven days for the first time since January. The State Treasury will offer 1 trillion dong ($48 million) each of five-year and three-year notes tomorrow, according to the Hanoi Stock Exchange. “The extended term in the open-market operations allows money to be circulated for a longer period, so interest rates may decline, which in turn will help bring down bond yields,” said Pham Minh Hoang, a fixed-income dealer at Ocean Commercial Joint-Stock Bank in Hanoi. “Banks are interested in buying government debt this year because they expect yields to drop further in 2012.” The yield on the five-year government bond dropped two basis points, or 0.02 percentage point, to 12.46 percent, according to a daily fixing from banks compiled by Bloomberg.
The DNN-Tan Phu Investment Joint Stock Company has started construction of an industrial zone of the same name in the southern province of Long An’s Duc Hoa District. The project, which will cost VND510 billion (US$24.5 million) covers an area of 262ha. The zone is about 40km from Tan Son Nhat airport and City’s centre districts. The first phase of the project will be completed late next year.
Can Tho Oil Refinery Company has asked the Department of Planning and Investment for permission to co-operate with Mekong Petrochemical Co in the building of the Can Tho Refinery. If approved, Mekong Petrochemical Co will invest 70 per cent of the capital for the project. Investment capital of the project will be reduced from US$538 million to $350 million because the refinery will now cover only an area of 50ha, 200ha less than the initial plan.
The Phu Quoc Marina Company has opened the first stage of its Duong Dong-Phu Quoc marina on Phu Quoc Island in the Cuu Long (Mekong) Delta province of Kien Giang. The marina includes a terminal, coffee bar, five-star floating restaurant and a five-star hotel. Total first-stage investment amounts to VND100 billion (US$4.8 million). The marina can receive and dock about 50 high-class motor or sailing boats. Its capacity will be expanded to 100 vessels.
Bach Dang Shipbuilding Industry Corporation in Hai Phong on Tuesday launched a 14,600-tonne concrete vessel built for Nghi Son Cement Corporation. The vessel is 139.8m long, 25m wide, 11m high. It has a speed of 14.5 nautical miles per hour. Its technical system was designed by Japan’s AZ Company.
Metro Cash&Carry Vietnam opened another wholesale centre yesterday in Vinh City, Central Nghe An Province. The centre, with total investment of US$13.3 million, has a sales area of 5.600sq.m. It will provide buyers with more than 25,000 food and non-food products from domestic and foreign manufactures. This is the fourteenth wholesale centre opened by Metro Cash&Carry in Vietnam.
An exhibition to showcase the Cuu Long (Mekong) Delta region’s development achievements in the last decade will be held in Can Tho next April, the Southwestern Region Steering Committee has said. It will highlight the region’s successes in the economic, cultural, educational, healthcare, defense, and religious spheres. The event will feature seminars to promote investment in the delta and co-operation for sustainable development of agriculture, art shows, and traditional cuisines from the south.
