Business in brief 25 Dec 2012
The Vietnam Trade Office (VTO) in Brazil has reported total two-way trade turnover between Vietnam and Brazil hit US$1.76 billion in 2012, 14.5 percent higher than the same period last year. The value of Vietnamese exports to Brazil has increased 18.9 percent to US$710 million against 2011, while imports from Brazil rose 11.9 percent to US1.05 billion. Vietnamese export commodities that enjoyed remarkable growth included telephones and associated parts (141.5 percent), footwear (95.2 percent), machines and accessories (54.5 percent), and garments and textiles (22.7 percent). Its main Brazilian imports spanned cattle feed, cotton, tobacco, and garment and footwear materials. The VTO estimates the bilateral trade revenue will surpass US$2 billion in 2013, with Vietnamese exports climbing to US$800 million.
Vietnam’s economy expanded only 5.03% in 2012, down from 5.89% the previous year, the GSO also announced yesterday. The growth rate was the slowest since 1999 and was much lower than the targeted 6.5%. The rate was even slower than the World Bank’s prediction of 5.2% earlier this month. The statistics were released at a press conference in the capital, with GSO’s general director Do Thuc telling reporters that the growth rate was "acceptable" despite fears that the downward growth trend could affect the country’s 2011-15 socio-economic development plan. "The 5.03% growth rate was still extremely valuable considering the struggle faced by the entire economy and the measures needed to curb inflation and stabilize the macro-economy," Thuc said. The GSO predicted GDP growth could reach 5.5% in 2013 as inflation has been brought under control.
In the last months of the year had continued to decrease, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Exports of tra fish, also known as pangasius, to five of the country’s eight main markets fell, including the EU, ASEAN, Mexico, Brazil and Saudi Arabia. Only exports to Hong Kong saw significant gains in the first 11 months, rising 40 per cent over the same period last year. In total, Vietnam’s tra fish exports dropped by 2.4 per cent compared to last year.
The first international Sport and Leisure exposition, Sportex Vietnam 2013, will be held at Tan Binh Exhibition and Convention Centre in HCM City from May 9-12. More than 100 local and international exhibitors will display indoor and outdoor sport equipment, leisure and health and fitness facilities and water sport and entertainment facilities. Tang Ba Le of the city’s Department of Culture, Sports and Tourism said the city had high demand for quality sporting goods. Co-organized by the department and the Minh Vi Exhibition and Advertisement Services Co, Ltd, the event is expected to attract more than 3,000 visitors.
Viettel Corporation, the nation’s largest telecom, has surpassed rival VNPT Group in earnings for the first time, according to reports released by Viettel yesterday. VNPT operates both of Viettel’s chief rivals, Vinaphone and MobiFone. Viettel’s earnings through December totaled an estimated VND140 trillion (US$6.6 billion), compared to VNPT’s projected total for the year of VND130 trillion ($6.1 billion), said Viettel deputy director Nguyen Manh Hung. Viettel expects to post a profit for the year of VND27 trillion (US$1.3 billion), up from VND20 trillion ($953 million) in 2011 and triple the anticipated profits of VNPT.
The economic recession has killed 12,249 enterprises in Ha Noi this year and had a severe impact on State Budget revenue, according to the city’s People’s Committee. These included 420 that dissolved and 5,273 that halted business activities. When declaring corporate income tax, 57,866 enterprises in Ha Noi posted losses, accounting for 71 per cent of those that submitted tax declarations. Municipal authorities are working with police to collect outstanding taxes.
Korean company CJ Freshway has signed a memorandum of understanding with Hoa Lam Investment and Development Company for establishing a joint venture in Vietnam. The planned JV, which will be in the food business, especially health foods, targeted at office workers and sick people, will have an initial chartered capital of US$300,000. Hoa Lam is developing the 37.5ha Hoa Lam Shangrila Hi-tech Medicine Area Project in HCM City, which will have six hospitals, laboratories, and healthcare training centers besides serviced residential projects. The first phase of the 320-bed Thanh Do International Hospital will begin operations early next year and be managed by Singapore’s Parkway Health Corp.
The Hanoi Power Corporation (EVN Hanoi) began construction on the Gia Lam 2 110 KV transformer station and power line on December 24. The VND99.9 billion project is included in Hanoi’s 2011-2015 planning list - approved by the Ministry of Industry and Trade on August 29, 2011. The first transformer is scheduled for installation in 2013 while the second will follow in 2016. The transformer station will be equipped with modern facilities and advanced equipment and supervised by Supervisory Control and Data Acquisition (SCADA). The transformer station project is part of the Distribution Efficiency Project (DEP) with a total capitalization of US$724.8 million, the largest funded by the World Bank (WB) thus far.
