Business in brief 22/9
2009 Vietnam construction steel residual is expect to 3mln tons. It is reported on September 21 that Vietnam Steel Association stated that as the batch of new steel manufacturers are out into the production, and it is expected that by the end of 2009 Vietnam’s construction steel production will amount to 7mln tons, hiking by 2.2mln tons compared to last year. While at present, Vietnam domestic steel demand per year is 4mln-4.2mln tons, and it is predicted that in 2009 Vietnam’s construction steel may hold 3mln tons’ residual.
Vietnam prepares for ASEAN summits in 2010. Hanoi will host the second ASEAN Summit, ASEAN Summit plus dialogue partners, the East Asia Summit, and ASEAN ministerial meetings, scheduled for October, 2010. Taking over the ASEAN chairmanship in 2010 will help Vietnam raise its prestige and profile in the region and the world as a whole, said Deputy PM Pham Gia Khiem, who is also Chairman of the National Committee on ASEAN.
Software piracy costs Vietnam USD275 million every year. The high rate of software copyright infringement in Vietnam, estimated at 85 percent, causes annual losses of USD275 million in jobs and tax revenues, a report said Tuesday (22 Sep 2009). The Business Software Alliance said in the report sent to more than 10,000 businesses that the current piracy rate was 7 percent lower than four years ago. The report was co-written by the Vietnam Software Association, the Copyright Office of Vietnam and the Ministry Inspectorate of Culture, Sports and Tourism. The report warned local businesses against software copyright infringement, noting that the 7 percent cut in piracy rate over the last four years has boosted the creation of new jobs by 11 percent, boosted sales for the local IT industry by 6 percent and increased tax revenues by 9 percent.
PM approves cooperative agreements with foreign partners. The Prime Minister has agreed on the contents of a memorandum of understanding (MoU) on cooperation in the management and development of forestry resources between the Vietnamese government and the government of the Republic of South Africa. The PM also approved an agreement with the United Nations Food and Agriculture Organization and Namibia. As part of the South-South cooperation program, Vietnam will assist Namibia to complete its food security program. An additional project called “Harmonizing the balance between security and daily life in Vietnam” is being carried out by the Ministry of Labor, Invalids and Social Affairs, with a non-refundable aid package of USD175,00 from the Global Fund.
Vietnam needs USD31 bil for real-estate development. Urban areas across the country need 37.5 million square meters of housing every year, costing VND562 trillion (USD31.2 billion). Vietnam currently has seven million people who need to buy or rent 150 million sq.m of housing at a cost of VND300 to 400 trillion. The tourism industry requires to build 22,500 hotel rooms costing VND3 trillion (USD166 million) by 2015, he said. Most real-estate executives attending the seminar admitted that their efforts to mobilize capital have not been satisfactory so far. But they said the most urgent problem is that Vietnam lacks a legal framework for setting up channels to indirectly raise capital -- like the remortgage market, real-estate bonds, retirement funds, and real-estate credit funds, the most popular way to raise capital in developed markets.
Diageo Indochina wins Vietnam Golden FDI award. Diageo Indochina Ltd, a subsidiary of the world’s leading premium beverage business, Diageo Plc, has won the Vietnam Golden FDI award for its achievements in community development. The awarded was sponsored by the Ministry of Planning and Investment. Diageo Plc, a multinational beverage corporation, invests in Vietnam as a 100 percent foreign direct investment company, under the name of Diageo Indochina Ltd. Diageo has a wide range of products familiar to Vietnamese consumers such as Johnnie Walker, Smirnoff, Bailey, Singleton, Dimple, Golden Gin, J&B, Cuervo, Tanqueray and Guinness beer.
